Oil News: India to OVERTAKE China as global oil driver – PM scrambles to cut dependency

Oil News: India to OVERTAKE China as global oil driver – PM scrambles to cut dependency

INDIA is expected to have the world’s greatest demand for oil by 2024, replacing Chinas as the biggest global oil driver.

A new report by energy consultancy Wood Mackenzie said India’s demand for oil was set to outpace India’s.

Research director Sushant Gupta said the growing demand would present challenges for India.

He said: “This is clearly an uphill task, unless domestic refiners can commit to their planned capacity additions.

“We think the most likely situation is that India would need between (3.2 million and 4.7 million barrels per day) of new capacity out to 2035 to remain self-sufficient in transport fuels.

“So we are talking about a future capacity which is 1.7 to 2.0 times the current.”

India is scrambling to reduce its reliance on oil, with Prime Minister Narendra Modi demanding the country triple its solar energy output while halving its oil and natural gas imports.

It comes as India’s government faces questions over its decision to demonetise currency in November 2016.

Indians returned almost the entire amount of currency withdrawn in the government’s note ban of November 2016.

This raises fresh questions over the purpose of a shock move that triggered a sharp slowdown in the economy.

In its annual report, the Reserve Bank of India said the total value of notes returned by the public was 15.3 trillion rupees ($216.7 billion) or 99.3 percent of the total of 15.4 trillion rupees of notes in circulation on November 8, 2016.

“The figures show the demonetisation exercise was flop,” said a chief economist at a bank, who sought anonymity as the subject is a sensitive one.

“Almost the entire amount came back, which showed that people were not hoarding money in cash.”

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