Lok Sabha Question No. 2735 (UNSTARRED), answered on 2018-03-12
Subject: Demand of Crude Oil
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SHRIKANT EKNATH SHINDE, PRITAM GOPINATH MUNDE, DHARMENDRA YADAV, SHIVAJI ADHALRAO PATIL, ANANDRAO  ADSUL, Shrirang Appa Barne

## GOVERNMENT OF INDIA LOK SABHA

## UNSTARRED QUESTION NO.2735 TO BE ANSWERED ON 12 th  MARCH, 2018

## DEMAND OF CRUDE OIL

2735. DR. SHRIKANT EKNATH SHINDE:

DR. PRITAM GOPINATH MUNDE:

SHRI DHARMENDRA YADAV:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI ANANDRAO ADSUL:

SHRI SHRIRANG APPA BARNE:

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether  the  International  Energy  Agency  (IEA)  sees  India  to  be  the  centre  of  global  oil demand growth by 2030 and if so, the details thereof;
- (b) whether oil consumption in the country grew at a fast pace during the last 14 months and gasoline and diesel consumption is expected  to double by 2030 even as the country aspires to sell only electric vehicles in 2030;
- (c) if so, the details thereof; and
- (d) whether the Government has assessed the reasons for higher growth in consumption of oil and if so, the details and the outcome thereof along with the steps taken/being taken by the Government to meet the growing demand of oil indigenously?

## ANSWER

## MINISTER OF MINISTRY OF PETROLEUM AND NATURAL GAS

(SHRI DHARMENDRA PRADHAN)

- (a) As  per  International  Energy  Agency's  World  Energy  Outlook  2017,  the  growth  of  oil consumption under the 'new policy scenario' for the major economies of the world during the period 2016 to 2030 is given below:

|                    | Oil demand (Mtoe)   | Oil demand (Mtoe)   | Oil demand (Mtoe)   |
|--------------------|---------------------|---------------------|---------------------|
| Country            | Year                | Year                | CAGR (%)            |
|                    | 2016                | 2030                | 2016-30             |
| China              | 552                 | 711                 | 1.82                |
| USA                | 796                 | 699                 | -0.92               |
| India              | 222                 | 357                 | 3.45                |
| Russian Federation | 140                 | 153                 | 0.64                |
| Japan              | 179                 | 126                 | -2.48               |
| World              | 4388                | 4715                | 0.51                |

Mtoe: Million tonnes of oil equivalent

(b) & (c) Average oil consumption during the last three years in India is given below:

| Years                      |   (MMT) |
|----------------------------|---------|
| 2015                       |  195.84 |
| 2016(P)                    |  216.6  |
| 2017(Jan.17 to Dec.'17)(P) |  221.39 |

P: Provisional

The growth rate of consumption of oil during the last 14 months (November'16 - December'17) was 3.74 % when compared with the earlier corresponding (September'15-October'16) period.

As per the report of the Working Group on 'Enhancing Refining Capacity by 2040', constituted by the Ministry of Petroleum and Natural Gas, the projected demand of petrol and diesel, as per trend scenario, is as under;

(Million Metric Tonnes)

| Petrol   | Petrol   | Diesel   | Diesel   |
|----------|----------|----------|----------|
| 2016-17  | 2029-30  | 2016-17  | 2029-30  |
| 23.8     | 49.0     | 76.0     | 163.0    |

(d) The major reasons for growth in consumption of oil in the country include, inter-alia, increasing  share  of  manufacturing  in  GDP,  thrust  on  infrastructure  spending,  growth  in disposable incomes leading to higher purchase of automobiles and mechanization of agriculture.

Government has taken several steps to enhance exploration & production of oil and gas in the country  which  include,  inter-alia,  Discovered  Small  Fields  Policy,  Hydrocarbon  Exploration Licensing  Policy  (HELP),  launch  of  1 st bidding  round  under  Open  Acreage  Licensing  Policy (OALP), National Seismic Programme of unappraised areas, marketing and pricing freedom for the gas to be produced from deep/ultra deep water/ HPHT areas, reform initiatives to enhance domestic  production  (including  inter-alia  extension  of  Production  Sharing  Contracts  for  small and  medium  size  fields,  early  monetisation  of  hydrocarbon  discoveries,  policy  on  testing requirements for discoveries in NELP blocks), marketing and pricing freedom for gas produced from CBM fields and operationalization of National Data Repository (NDR).

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