Page 49 - Policy Economic Report_Feb'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

(OALP). He emphasized that the Government has provided comprehensive support to the sector, including
opening the Exclusive Economic Zone and establishing a single-window clearance system. Shri Modi noted
that changes to the Oilfields Regulation & Development Act now offer stakeholders policy stability,
extended leases, and improved financial terms. He emphasized that these reforms will facilitate the
exploration of oil and gas resources in the maritime sector, increase production, and maintain strategic
petroleum reserves.

Prime Minister underlined that due to several discoveries and the expanding pipeline infrastructure in
India, the supply of natural gas is increasing. He emphasized that this will lead to a rise in the utilization
of natural gas in the near future. He also highlighted that there are numerous investment opportunities
in these sectors.

Shri Hardeep Singh Puri, Minister of Petroleum & Natural Gas, in his address at the event, highlighted the
growing significance of the event, which has rapidly become the second-largest energy conference in the
world in just three years. This year’s edition has drawn over 70,000 energy professionals from more than
50 countries, including over 20 Ministers and 100 CEOs from Fortune 500 energy companies, making it a
key forum 6for discussions on the evolving global energy landscape.

Shri Puri underscored that IEW 2025 comes at a crucial juncture amid major geopolitical shifts that have
reshaped the global energy order. He stressed that the conference offers a unique opportunity for
policymakers, industry leaders, and stakeholders to engage in meaningful dialogue, exchange ideas, and
chart a course for a balanced and inclusive energy transition. While reaffirming India’s commitment to
sustainability, he emphasized that the transition must be pragmatic, recognizing the continued role of
hydrocarbons alongside renewables, hydrogen, and biofuels. He cited the International Energy Agency’s
(IEA) projection of global energy investment surpassing USD 3 trillion in 2024, with USD 2 trillion dedicated
to clean energy technologies, as a clear indication of the accelerating shift toward cleaner energy sources.

The Minister highlighted India’s leadership in driving energy innovation and entrepreneurship, noting
that major global energy firms like BP, Shell, ExxonMobil, and Chevron operate Global Capability Centres
in India, employing thousands of Indian engineers to develop cutting-edge solutions for energy efficiency,
data analytics, and sustainable operations. He also acknowledged the role of 500+ entrepreneurs
participating in start-up challenges such as Avinya and Vasudha, and the 700 exhibiting companies,
including over 100 start-ups, showcasing AI-driven energy solutions, quantum computing applications,
and advancements in biofuels and battery technologies.

A key theme of his address was energy justice, where he warned against fragmented energy policies that
could deepen inequality by leaving developing economies behind in the transition. He emphasized
the need for resilient supply chains in critical minerals, semiconductors, and emerging energy
technologies, calling for global collaboration to prevent disruptions that could hinder progress. He also
pointed out that India is strategically investing in diverse energy sources, including scaling up biofuel
production, increasing its gas share from 6% to 15%, and targeting 5 million metric tonnes of hydrogen
production by 2030 to ensure a smooth transition without compromising energy security.

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