Need to safeguard oil and gas supply chains amid geopolitical uncertainties

WITH India projected to grow at over 6 per cent annually and its primary energy demand increasing at a CAGR of 5.5 per cent, there is an urgent need to safeguard oil and gas supply chains amid rising geopolitical and market uncertainties, according to a report released on Friday.

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Over 85 per cent of India's crude oil needs are met through imports, positioning the country as the world's third-largest oil importer.

"Geopolitical instability, especially in chokepoints like the Hormuz Strait and Suez Canal, threatens consistent crude supply and pricing," said the report by the PHD Chamber of Commerce and Industry (PHDCCI).

Brent crude prices are forecast to decline from $81 per barrel in 2024 to $66 per barrel in 2026, driven by supply expansion outside OPEC+ and moderate demand growth.

"India's economic growth trajectory demands resilient and diversified energy sources. This report provides an integrated roadmap to navigate future energy challenges while ensuring affordability, accessibility, and sustainability," said Hemant Jain, PHDCCI President.