As the center of gravity shifts from the oil producing countries to the consuming nations, India has emerged as the focal point in the world of oil and gas as the third largest energy consumer in the world. This has resulted in India asserting its market influence in the global arena to reorder the anomalies currently existing in the global energy markets. As geopolitical environment changes have an impact on the hydrocarbon sector and considering the dependency on the Middle East region for India’s Oil and Gas sourcing, there has been a conscious effort to diversify the sourcing options. In this regard, and with a view to ensure energy security of the country, India's oil and gas companies have established their presence in 26 countries adding nearly 25 MMTOE of equity oil and gas to the existing production.
2. Currently, India is one of the world’s fastest-growing economies. The energy sector plays a vital role in fuelling this growth. Already in this century, India’s energy demand has more than doubled, from 4% of the global total to over 7%. By the 2030s, as India's economy is expected to grow at a rate of 7% per annum, it is projected that India will consume more than 10% of the world’s energy per annum. According to International Energy Agency (IEA), India's primary energy demand will double by 2040. This means that India’s energy needs will have sustained impact on the world energy system. During the period between 2005 and 2016, India’s GDP increased at a CAGR of 7% and India’s primary energy consumption increased at a CAGR of 6.7%, from 394 million tons of oil equivalent (MTOE) to 724 MTOE.
3. The continuous endeavor of the Ministry of Petroleum and Natural Gas, has, therefore, been to ensure India’s energy security and to ensure availability of affordable sources of energy for our economy and also to our domestic consumers. To ensure energy security, Government has encouraged Public Sector Oil and Gas companies to aggressively pursue equity oil and gas opportunities overseas by sustaining and promoting engagement with foreign countries and international organizations in the hydrocarbon sector. India is actively engaged in bilateral and multilateral cooperation with foreign countries. The Ministry is engaged in oil diplomacy and is encouraging PSUs to adopt global vision in their pursuit of hydrocarbon assets abroad to strengthen country’s energy security.
4. The role of International Cooperation (IC) Division of Ministry of Petroleum & Natural Gas is strengthen India’s energy security by sustaining and promoting engagements with foreign countries and international organizations in oil and gas sector. IC Division also facilitates Indian oil and gas Public Sector Undertakings (PSUs) to aggressively pursue opportunities for acquiring quality oil and gas assets overseas. The Division also encourages the companies to diversify oil and gas sources to maintain a balanced portfolio. The Division, wherever necessary, takes up issues with relevant governments pertaining to overseas assets of Indian companies, including through visits at the level of Minister, Secretary and other senior officials of the Ministry and at bilateral and multilateral meetings. In this context, Joint Working Group meetings, Energy Dialogues and Joint Commission Meetings / Inter-Governmental Commission meetings are held regularly with important partner countries.
5. India is also actively engaged in multilateral cooperation in the hydrocarbon sector with International agencies like OPEC, IEA, IEF (International Energy Forum), GECF etc. India and OPEC have set up Institutional Dialogue since May 2015. India has become Association Country of IEA in March 2017 and is working closely with IEF to further its energy diplomacy. India which is the current chair of IEF will be hosting the 16th IEF Ministerial Meeting from 10-12 April, 2018 in New Delhi. The bilateral and multilateral engagements are also useful for developing and enhancing cooperation in the areas of technology collaboration, joint R&D programmes, data sharing, statistical model building and analytical tools for energy sector forecasts, etc.