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The global energy markets are under stress as they are facing a double whammy of energy crunch and higher prices caused by the pandemic and the war.

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Pomila Jaspal, Director (Finance), ONGC Limited

What is your outlook on the global and domestic oil and gas sector? Considering the extraordinary circumstances prevailing in global energy markets, how do you expect demand growth to evolve in the short to medium term? Even as the world is coming to the terms of subsequent waves of the pandemic with renewed demand and vigour, the war in Ukraine has dealt a severe blow to the global economy and added another dimension of uncertainty to the energy markets. Companies and governments worldwide are re-evaluating their dependencies and re-analysing their strategies. In the present circumstances, energy security has resurfaced as a top global priority. The global demand for oil and gas has rebounded but the corresponding mismatch or shortfall in supply sources will continue to keep oil and gas prices at elevated levels in the short to medium term.

The global energy markets are under stress as they are facing a double whammy of energy crunch and higher prices caused by the pandemic and the war. India is the world's third-largest energy consumer and a major force in the global energy economy. Energy consumption in India has doubled since 2000 due to growing population, rapid industrialisation and large-scale urbanisation. While the pandemic seriously hampered capacity growth in 2020 and 2021, the pace is likely to further pick up in 2022 and notwithstanding the rise in share of renewables the demand for oil and gas is going to stay for the next few decades to meet the growing energy needs of our population.