India is growing and so is its demand for energy. Carrying one-fifth of the world's population (over 1 billion precisely), India is at number 6 in the list of high energy-demand countries. Indian economy is estimated to grow by around 10% in next two decades and the oil sector will also witness a rise in demand to drive air, water and land transportation.

India is at number 4 in world for wind energy generation after Germany, Spain and US. Its monsoon winds contribute to its present power generation. WWEA (World Wind Energy Association) takes India as the pioneer in Asia in the field of wind power generation. India is now taking measures to tackle the issues of energy crisis by adding 1430 MW to its 4430 MW capacity.

India has considerable coal reserves but oil and gas reserves are relatively less in number. The oil reserves in India amount to around 6 billion barrels. Most of the Indian oil reserves are situated in offshore fields of Mumbai and Assam. Because of the stagnation phase in crude oil production, India depends on imports for approx 70% of its requirement. Most of the imports are from Middle East. The dependence of India on imports is increasing rapidly.

With increasing dependence for oil on Persian Gulf, India is following the footsteps of other key oil importing nations and looking for oil outside Gulf countries. The investment by Indian firms in foreign oilfields is expected to reach $ 3 billion in few years. Africa, specifically Nigeria and Sudan, is of special interest. India has already signed the deal and finalized the contract for petroleum's exploration, development and production with a company from Syria in Russia. Myanmar and Vietnam in Southeast Asia too are the possible suppliers to Indian market.

It is expected that India would be a major importer of LNG and natural gas in coming decades. The most cost-effective way to supply India with gas would be through pipelines from Central Asia and Middle East, via Pakistan. But the two countries do not have healthy relations are not cooperating on energy schemes, so it would not be an easy task to make this pipeline a reality. Bangladesh on Eastern coast may allow imports of small quantity of natural gas.

For further information about Indian Energy Sector and its future growth, read the report " Indian Energy Sector (2005-2010)" by RNCOS at:

http://www.rncos.com/Report/IM022.htm

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