Vedanta Chairman Calls for Higher Domestic Oil Production as Demand Set to Surge

India’s energy landscape is expected to see a significant rise in oil consumption over the coming decades. BP forecasts that by 2050, India’s oil demand could reach 9 million barrels per day, nearly double the current level.

Vedanta Group Chairman Anil Agarwal emphasised the need to boost domestic production to secure energy supply, reduce imports, and support employment.

Domestic Oil Production Needs

Vedanta Chairman Anil Agarwal highlighted that India currently produces only around 0.6 million barrels per day. With projected demand set to reach 9 million barrels per day by 2050, Agarwal suggested that increasing domestic oil output is essential for energy security, reducing import dependence, and generating jobs. 

He also recommended that self-certification of clearances could accelerate exploration and production activities,as per news report.

Energy Mix and Demand Trends

BP’s outlook indicates that while renewables such as solar and wind are expected to grow strongly, coal will continue to be the largest energy source, accounting for over 40% of India’s energy mix by 2050. 

Oil demand, however, is expected to rise sharply, with India projected to contribute 10% of global oil consumption, up from 5% in 2023.

Exploration Initiatives and Policy Moves

 Recent years have seen a renewed focus on oil and gas exploration, particularly offshore. In 2022, nearly one million square kilometres of previously restricted offshore areas were opened for exploration. Deepwater regions, including the Andaman-Nicobar basin, now present new opportunities for resource development.

National Deep Water Exploration Mission

Prime Minister Narendra Modi announced the launch of the National Deep Water Exploration Mission to tap into offshore reserves. The initiative is intended to support India’s goal of energy self-reliance, enhancing domestic production and moving the country towards greater energy independence.

Read More: Vedanta’s 5-Way Demerger: Five New Entities to Emerge Post-Split.

Conclusion

With rising oil demand and vast untapped reserves, India faces both opportunities and challenges in achieving energy security. Accelerating domestic production, streamlining clearances, and expanding exploration initiatives could play key roles in meeting future needs.

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