India must protect oil, gas supply chains

New Delhi

India’s rising energy needs and economic growth make it crucial to protect oil and gas supply chains, especially during uncertain global events, a report said on Friday. The report was released by the PHD Chamber of Commerce and Industry (PHDCCI).

India relies on imports for over 85 per cent of its crude oil, making it the world’s third-largest oil importer. With energy demand growing at 5.5 per cent annually, and the economy expanding over 6 per cent each year, the risk from global tensions is serious.

“Geopolitical risks at major points like the Hormuz Strait and Suez Canal can disrupt oil supply and prices,” the report warned. Brent crude prices may fall from $81 in 2024 to $66 in 2026 as global supply grows outside OPEC+.

PHDCCI President Hemant Jain said India needs secure, varied, and affordable energy options. He called for strong planning to keep energy supplies steady, clean, and accessible.

Industry now uses around 40 per cent of India’s energy, the most of any sector. Over the last 30 years, industrial energy use has tripled.

India’s oil and gas come mainly from Assam, Gujarat, Rajasthan, Mumbai High, and the Krishna Godavari Basin. The 2016 Hydrocarbon Policy has helped boost exploration with simpler rules and better financial terms.

Offshore output is expected to rise due to ONGC’s KG-D5 project. However, gains may be limited as older fields lose output.

Excitement is growing over a possible massive oil discovery in the Andaman Sea. It could hold 184,440 crore litres of oil—similar to Guyana’s giant oil find.

India’s natural gas production may also grow to 54.7 billion cubic meters by 2029-30.