China is not alone. India has grown to be a factor to reckon with in oil and gas markets as well. With its more than 80-percent dependence on imports of crude to satisfy its domestic demand and a growing population and economy, India is being seen by some as the country that could replace China as the single most important driver of global oil demand in the not-too-distant future.
China is seen to account for about half of global oil demand growth, taking it to a record high of almost 102 million barrels daily.
OPEC is also forecasting strong demand growth in China, revising it in its latest Monthly Oil Market Report to over 700,000 bpd from 590,000 bpd in the previous edition of the report.
OPEC is also quite optimistic about India’s demand, expecting the subcontinent to become the leader in oil demand growth in less than 20 years and remain the leader until at least 2045.
Yet Asia is not just China and India. It is a lot of other countries, too, and their demand for oil and gas is also growing.
Indonesia’s demand for gasoline, for instance, is this year set to beat the record that it booked last year. The country is the largest importer of gasoline in Asia, with 2023 demand rates seen at 670,000 barrels daily.
Petronas recently boasted of a successful bid round last year and scheduled the next one after awarding licenses for the exploration of nine oil and gas blocks. The country also reported a twofold increase in oil and gas discoveries last year.
Gas demand is also on the rise in Asia, despite last year’s surge in prices that made a lot of gas importers in the region reconsider their intentions of switching from coal to gas.
Demand for the fuel in ASEAN is set to more than double by 2050 from 2021 levels to 350 billion cu m as the shift away from coal continues despite the recent hiccup. This means that by 2050, the share of natural gas in the region is seen rising to 24 percent, replacing coal.
The industry has been warning about the tightening supply of oil and—with less certainty—gas for quite a long time now.
The rest of the world is going in the direction of growing populations with growing energy needs. It also appears to feature a lot more pragmatic governments that prioritize access to energy over the type of energy.