Enough oil available in the world, India buying from 39 sources: Hardeep Singh Puri

NEW DELHI: Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, has confidently asserted that the country is well-prepared to meet its growing energy demands, with a diverse range of oil sources.

Speaking on the availability of oil in the global market, Puri emphasised that India has expanded its procurement base, moving from 27 suppliers to 39. “We are now buying from 39 sources, earlier we were buying from 27. Enough oil available and we have enough choices to exercise”, Puri said, highlighting India’s strategic positioning in the global oil supply chain.

Addressing concerns about potential disruptions in the oil market, the minister downplayed any immediate risks. He stated that the global supply of oil currently outpaces consumption, ensuring a stable market.

#WATCH | Union Minister Hardeep Singh Puri says, “Our energy consumption has been steadily growing. Today there is more oil available in the world than there is consumption. If some parties hold back on availability there are new suppliers on the market also, in the short to… pic.twitter.com/dLlbFipyTz

— ANI (@ANI) October 7, 2024

Puri said, “Our energy consumption has been stedily growing. Today there is more oil available in the world, then there is consumption. If some parties hold back hold back on availability, there are new suppliers in the market also. In the short medium term, I don’t see any shortage of oil in the world”.

Puri’s comments come at a time when global oil markets are under scrutiny, with various geopolitical and economic factors impacting supply chains. However, India’s proactive approach to diversifying its oil sources has placed the country in a secure position, ensuring energy security for its rapidly growing economy.

Russian crude accounted for a record 44 per cent of India’s total imports in July 2024, reaching an all-time high of 2.07 million barrels per day (bpd). This marked a 4.2 per cent increase from June and a 12 per cent rise compared to the same period last year, according to data from trade and industry sources on Indian shipments.

India’s oil marketing companies (OMCs) are expected to boost the country’s crude oil refining capacity by 35-40 million tonnes (MT) by the end of fiscal 2030, according to Crisil Ratings. This would bring the total installed refining capacity to 295 MT by 2030. The expansion is driven by increasing domestic oil demand, with existing refineries already operating at 100-103 per cent capacity utilisation.

The project is estimated to require a capital investment of Rs 1.9-2.2 lakh crore, with most of the new capacity coming from brownfield expansions. Over the last decade, India’s refining capacity expanded by 42 million tonnes (MT), reaching 257 MT in fiscal 2024. This growth was mainly driven by rising domestic demand, while exports remained stable at 60-65 MT annually during this time.

The domestic consumption of petroleum products increased at a compound annual growth rate (CAGR) of 4 per cent over the past ten years. (ANI)