India needs to increase domestic oil production and electrify as many processes as possible—generating that electricity from domestic sources—to mitigate risks posed by ongoing geopolitical uncertainties, said Spencer Dale, Chief Economist at BP Plc.
While presenting the BP Energy Outlook 2025, Dale highlighted that India imports about 85–90% of the oil it consumes. Oil demand in the country is projected to rise from around 6 million barrels per day (mb/d) today to approximately 9 mb/d by 2050. Similarly, around 45–50% of India’s natural gas requirements are met through imports. In an increasingly volatile world, Dale said, reducing import dependency becomes critical for India’s energy security.
“One way to achieve that is by increasing domestic production of oil and gas. As you may know, BP—along with Reliance—produces about a third of India’s domestic natural gas. We are also working with ONGC to support oil production,” said Dale.
“Another approach,” he added, “is to electrify as many processes as possible and generate that electricity from domestic sources—both coal and renewables. This strategy helps reduce dependence on imports and aligns with broader goals of energy security.”
Currently, India faces pressure for importing discounted crude oil from Russia. The United States recently imposed approximately 25% additional sanctions on Indian exports, citing concerns that India’s purchase of Russian crude indirectly funds the war in Ukraine and supports Russia’s economy. Recent, Israel–Iran conflict and Houthi attacks in the Red Sea, which have disrupted key shipping routes. India imports much of its oil from Iraq, Saudi Arabia, and the UAE, with shipments passing through these regions. The disruptions have led to shipment delays, 20–30% increases in shipping costs, and rising oil prices, all of which are impacting India’s economy.
Dale further noted that India continues to experience very strong growth in electricity demand, which is rising at nearly twice the rate of overall energy demand, driven by the country’s economic expansion and ongoing electrification.
While wind and solar power are growing rapidly, coal consumption is also expected to increase to meet the surge in power demand.
Under the current trajectory, India’s total energy demand is set to nearly double by 2050, making the country responsible for approximately 12% of global energy demand.
Meanwhile, BP has signed an agreement with state-run ONGC under which BP will act as the Technical Services Provider (TSP) for the Mumbai High field, India’s largest and most prolific offshore oil field earlier this year.
BP is one of the largest international energy companies operating in India. It has a longstanding partnership with Reliance Industries Ltd. (RIL) in the natural gas sector, with joint operations in the Krishna-Godavari and Mahanadi basins off India’s eastern coast. This includes a 50:50 joint venture for gas marketing, India Gas Solutions Pvt. Ltd.