India has pledged to increase oil and natural gas imports from the U.S.
following Prime Minister Modi’s meeting with President Trump in
February. Officials project that energy imports could rise from $15
billion to $25 billion.
A Reuters report shows that U.S. crude exports to India surged to
3,57,000 barrels per day (bpd) in February, up from 2,21,000 bpd last
year.
Key Takeaways from the Article
- 1. India’s Commitment to U.S. Energy Imports
- India is the world’s third-largest oil importer, meeting 85% of its
crude oil needs through imports. - Strengthening energy ties with the U.S. enhances hydrocarbon security and boosts bilateral trade.
- U.S.-India trade is set to double to $500 billion in five years.
- Diversifying energy sources with U.S. imports will improve India’s long-term energy security.
2. U.S. Expanding Energy Supply to India
- India aims to make the U.S. a key energy supplier, importing crude oil, petroleum products, and LNG.
- Both countries are expanding hydrocarbon trade by including ethane and petroleum products.
- Investments in oil & gas infrastructure and collaborations between energy companies are increasing.
- Broader cooperation includes discussions on civil nuclear energy and India’s IEA membership.
3. India’s Growing Oil and Gas Demand
- In 2023-24, India imported 234.26 million tonnes of crude oil, with import dependence rising to 87.8%.
- Domestic oil production remained stagnant at 29.36 million tonnes, covering only 13% of demand.
- The crude oil import bill fell to $133.37 billion, down from $157.53 billion in 2022-23, due to lower global prices.
- LNG Imports:
- India imported 31.80 billion cubic meters (bcm) of LNG in 2023-24, up from 26.30 bcm the previous year.
- The total import cost was $13.4 billion.
- India is focusing on clean energy and expanding U.S. LNG imports to raise natural gas consumption from 6% to 15% of
its energy mix.