India to Pip Beijing in Oil Demand by 2020: IEA Outlook
By ENS Economic Bureau | Published: 05th December 2013 10:51 AM |
India will overtake China by 2020 to become the largest source of global oil demand, the Paris-based International Energy Agency (IEA) predicted on Wednesday.
“China dominates the picture within Asia, before India takes over from 2020 as the principal engine of growth... The shifting geography of demand is further underlined by India becoming the largest single source of global oil demand growth after 2020,” IEA observed.
IEA in its annual World Energy Outlook said the centre of gravity of energy demand is switching decisively in favour of emerging economies, particularly China, India and the Middle East, which drive global energy use one-third higher.
IEA head Maria van der Hoeven India’s energy demand will double by 2035 on back of economic growth and rise in population said talking to reporters on the sidelines of the two-day 8th Asia Gas Partnership Summit, which concluded here on Wednesday.
“When we look at India, we see that in 2035, India will be the largest importer of coal, will be second (largest) importer of oil next China and will be number four in importing gas after European Union, China and Japan,” she said.
IEA’s World Energy Outlook 2013 predicts the global oil demand to reach 101 million barrels per day (mbpd) by year 2035 from today's around 87 mbpd.
India's oil consumption will exceed 8 mbpd by 2035, which is more than current consumption of Japan, Korea and Australia put together.
While the energy demand will double, per capita consumption in India will still be one-fourth of the OECD average, Hoeven said.
IEA said China is about to become the largest oil-importing country by replacing US and India will become the largest importer of coal by the early 2020s. Coal imports will rise primarily because India uses the fossil fuel for generation of electricity. “Coal is single largest source of power generation in India. 68 per cent of electricity in India comes from coal.”
Electricity generation will grow by 5 per cent per year, the IEA predicted.
Set up by the Organisation for Economic Cooperation and Development ( OECD) as a response to the oil shock of 1973-74, IEA advises its 24 member countries on issues related to energy security.
Demand to Grow Leaps and Bounds
The International Energy Agency ’s World Energy Outlook 2013 predicts the global oil demand to reach 101 million barrels per day (mbpd) by year 2035 from today’s around 87 mbpd. India’s oil consumption will exceed 8 mbpd by 2035, which is more than current consumption of Japan, Korea and Australia put together.