Igor Sechin, CEO of Rosneft, Russia’s largest oil producer, addressed the Energy Panel at the 27th St. Petersburg International Economic Forum, highlighting several key points about the global oil market and India’s economic trajectory.
Sechin emphasized that India’s end-use energy consumption is projected to grow by 90% by 2050, one of the fastest rates worldwide. He attributed this to India’s rapidly growing economy, which is expected to sustain its momentum over the next five years and become one of the world’s top three economies with a GDP of $5 trillion. By 2050, India is projected to surpass the US in economic size.
Sechin noted that the OPEC+ agreement appears to have minimal impact on the oil market, as evidenced by the stockpiling of reserves by both Western and West Asian companies, suggesting they are preparing for significant market shifts. He referred to these reserves as “phantom barrels” that could negate the effects of voluntary production cuts by major OPEC members, a point underscored by declining market quotations following recent ministerial decisions.
He also pointed to the upcoming US presidential elections as a source of market volatility, where public sentiment, influenced by gasoline prices, could lead to regulatory changes and emerging risks, prompting major players to explore alternative strategies.
According to Sechin, developing countries will drive oil consumption growth in the coming decades. By 2030, 95% of global consumption growth is expected to come from these countries, with the highest demand growth anticipated in Asian nations, which are key trading partners of Russia.
Despite the global shift towards renewable energy, Sechin noted that the consumption of oil, gas, and coal continues to rise. Rosneft has recently signed a term agreement with India’s state-owned Indian Oil to increase oil supplies. Since 2016, Indian companies ONGC Videsh Ltd., Oil India Limited, Indian Oil Corporation, and Bharat Petroresources have held a 49.9% stake in Rosneft’s subsidiary JSC Vankorneft.
Read More: Click Here
