Modi: oil and gas continue to play an important role in energy security
India Energy Week 2023 (IEW) was concluded on Wednesday, 8 February, bringing industry leaders from more than 150 countries in Bengaluru.
Indian Prime Minister Narendra Modi spoke at the opening of the event on Monday, 6 February. He said the oil and gas sector will continue to play an important role in meeting India’s growing energy demand, even as the country has charted out a roadmap towards creating clean energy generation infrastructure
"In order to meet the growing aspirations of crores of people who now form the ‘middle class’, we will require unhindered oil and gas supplies," said Prime Minister Narendra Modi.
The national government has lifted restrictions prohibiting mining, thereby making 1 million square kilometres available for exploration and production, informed India's Housing and Urban Affairs Union Minister. "By doing so, we want international players with expertise in Exploration and Production to come to India and help increase in-house oil production. The government is creating new opportunities for investment and collaboration in the energy sector of India,” he said.
Speaking at the session "Prices and Supply volatility addressing global energy security need", Secretary General, OPEC, Haitham Al Ghais said oil exploration and production sector requires about 12 trillion-dollar investment by 2045.
He added that the Organisation of the Petroleum Exporting Countries is in favour of transition and cleaner energy switching but said the issue here is not about the source. But it is about emission. “We all need to work together to reduce the emission so that there is energy security for all,” the OPEC Secretary General stressed.
On Tuesday, 7 February, during the session "Transitioning to a low-carbon energy mix: how are energy companies adapting?" experts highlighted the importance of fossil fuel in the clean energy roadmap. Industry leaders believe that fossil fuels will play a crucial role if India is to achieve its goal of reducing emissions intensity by 45 percent by 2030.
Building clean energy systems will take a long time, so the sensible option is to do both. Transition of existing capacity and creation of new capacity should be done together, said Prashant Ruia, Director, Essar Capital, and Chairman of the Board, Essar Oil UK.
"Idea is to use existing capacities to decarbonise and bring in future fuels to be supplied from the existing capacities. Having said that, it is not an easy solution to replace. However, we must use all the existing infrastructure to build new and clean energy systems," said Ruia.
"One thing which goes in our favour is the fact that technology, in this space, is evolving pretty fast. Improvement in technology will be fast and quick as we have seen in solar space. The challenge right now is to bring down the cost of hydrogen (production) but I am sure that in the next few years we would see rapid progress in this space" he added.
Clearly understanding the need of the day of having a mix of fossil and renewable sources of energy with cutting-edge technologies, India has rationalised its actions to ensure minimum impact on the environment.
Highlighting the role of the Indian oil and gas industry, Hardeep Singh Puri said: "Our Oil and Gas industry has made significant strides in recent years. It has risen to the occasion in a commendable manner during these challenging times by ensuring energy supplies."
"Our strategy of development rests on seven key transitions to low carbon development pathways. The strategy calls for low carbon development for electricity systems consistent with development, development of an integrated, efficient and inclusive transport system, promotion of faculty and material efficiency in buildings, sustainable urbanisation, economy-wide decoupling of growth from emission and development of efficient innovative low emissions industrial systems," the minister said.
All this becomes relevant given the fact that India will have the highest growth in energy demand in Asia in the coming decades. The Indian energy demand is projected to increase from 18.6 million barrels per day of oil in 2021 to 37.7 million barrels per day in 2045.
Held under the auspices of the Ministry of Petroleum and Natural Gas, the Indian Energy Week was a leading platform to bring together India's growing network of energy stakeholders with international partners to collaborate and discuss a responsible and sensible energy transition towards a zero-energy pathway.
More than 30,000 global energy leaders, 8,000 conference delegates, over 650 exhibitors and 500 renowned speakers from 150 countries participated in the exhibition and conferences.
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