Just days after new U.S. sanctions targeted two Russian oil companies, prompting Indian refiners to seek alternative crude sources, Union Petroleum and Natural Gas Minister Hardeep Singh Puri confidently stated on Tuesday that global crude oil supplies remain abundant.
Minister Puri, while not naming specific firms or details, emphasized India’s resilience, saying, “Even if one supply chain is disrupted, alternatives are available.” He also noted the unique, unregulated nature of global oil trade, unlike frameworks such as GATT.
During a ‘fireside chat’ at the 28th Energy Technology Meet, Mr. Puri proudly showcased India’s successful diversification efforts. Over the years, Indian oil refiners have expanded their crude oil suppliers from 27 to 40 countries. Furthermore, Indian oil companies now export refined products to 50 nations, generating a remarkable $45 billion in revenue.
Focusing on refining and the global shift away from fossil fuels, Mr. Puri painted a promising picture for India’s energy future. He asserted that the refinery sector is set to be a key driver of the nation’s economic growth. India’s refining capacity, currently just over 258 million tonnes, is projected to reach 310 million tonnes by 2030, with ambitions to further expand to 400 million tonnes.
Mr. Puri highlighted India’s unique position, where robust economic growth and a burgeoning population are fueling energy demand. This contrasts sharply with global trends, where 101 out of 420 refineries—accounting for roughly 18.4 million barrels per day or 20% of worldwide capacity—face potential closure within the next 7-10 years. He stressed that a well-conceived policy framework and strong support systems are vital for achieving ambitious energy goals, also emphasizing the strategic move for refineries to diversify into petrochemical production.
Addressing a gathering of top oil company executives, he explained that modern refineries are deeply intertwined with global markets and are increasingly integrating with petrochemical operations, significantly boosting their efficiency.
India is undergoing a significant energy transformation driven by technological advancements, with refineries playing a central role. While further upgrades and exciting progress in green hydrogen are anticipated, the Minister acknowledged that oil and gas exploration and production remain a key concern.
Regarding India’s reliance on imported technologies, the Minister stated, “We should strive to innovate and develop domestically, but also embrace exporting our capabilities wherever possible. Our aim isn’t just self-sufficiency, but also contributing to the global energy landscape.”