India's energy consumption to grow 90% by 2050: CEO of Russia's Rosneft

India’s energy consumption is set to grow 90% by 2050, says Igor Sechin, CEO of Rosneft, one of Russia's largest oil producers. Sechin made this remark while addressing a meeting of key global business and political leaders at the Energy Panel of the 27th St. Petersburg International Economic Forum (SPIEF). India’s end-use energy consumption would be the world’s fastest.

Rosneft, a key partner for Indian energy companies, recently signed an agreement to boost oil supplies to India and offer a wider variety of oil types. Since 2016, Indian companies like ONGC Videsh Ltd, Oil India Ltd, Indian Oil Corporation, and Bharat Petroresources have owned nearly 50% of Rosneft's subsidiary, JSC Vankorneft.

"Over the next five years, India is projected to continue its strong economic momentum and become one of the top three largest economies in the world with a GDP of USD 5 trillion, and by 2050 will overtake the US in terms of the size of the economy," he said in his keynote speech titled “Energy transition and phantom barrels.”

He said the developing nations would use the most oil in the coming decades and by 2030, the growth of demand in these countries would be 95% of the global consumption rate. Asian countries, Russia’s main business partners, are likely to be the biggest consumers causing growth in oil demand, Sechin said.

Roadblocks to Hydrogen Production

One of the most important clean energy fuels, hydrogen production is faced with roadblocks in terms of production technology, logistics and marketability, said the Rosneft CEO.

He pointed out that despite renewable energy making up less than 5% of global energies and EVs (electric vehicles) only amounting to 3%, oil, gas, and coal consumption is still growing. He believes that green energy projects are not that profitable, there is a shift away from traditional energy sources, making it even harder to move towards sustainable energy.

Sechin stressed that there should be a well-balanced energy transition keeping the majority in mind, which will ensure the rise of energy consumption in developing nations.

He views an “aggressive promotion” of a “green agenda” as waging an energy war on most of the world’s population. The disparity in energy cannot go without reliable supplies of oil and gas as per his statement.

Over the past two years, Russia has offered great discounts to Indian oil refiners, in the aftermath of the ban by Western countries following the Ukraine war. According to the Ministry of Commerce, India’s crude import from Russia in FY24 touched $46.48 billion, more than 50% in FY23.