India to overtake Japan to become third-largest oil consumer: US1 min read . Updated: 13 May 2014, 06:22 PM IST
US Energy Information Administration predicts India to overtake Japan by 2025
New Delhi: India will overtake Japan to become the world’s third largest oil consumer behind the US and China by 2025, the US Energy Information Administration (EIA) said.
EIA in its Annual Energy Outlook said India’s oil consumption will rise from 3.68 million barrels per day (bpd), or 173.5 million tonnes, in 2012 to 5.19 million bpd in 2025, overtaking Japan’s 4.38 million bpd consumption. Japan consumed 4.75 million bpd of oil in 2012.
India currently is the fourth largest oil consumer in the world behind the US, China and Japan. The US will continue to be the world’s biggest oil consumer but with almost no demand growth. The US consumed 18.21 million bpd of oil in 2012, projected to rise to 19.23 million bpd in 2020 before falling to 18.97 million bpd in 2025 and to 18.42 million bpd in 2040.
China’s oil consumption is projected to rise from 10.36 million bpd in 2012 to 15.70 million bpd in 2025 and 20.48 million bpd in 2040, posting a compounded annual growth rate of 2.5%.
India’s oil consumption growth rate from 2012 to 2040 will be highest in the world with a 3% compounded annual growth rate. Its oil consumption, according to EIA, will reach 6.11 million bpd in 2030 and 8.33 million bpd in 2040.
As much as 80% of India’s oil need is met through imports. China’s gross domestic product (GDP) is roughly 4.5 times more than that of India and the US gross domestic product almost nine times that of India.
India had in 2013 overtaken Japan as the world’s third-biggest crude oil importer. It imported 3.86 million bpd of crude oil, nearly 6% higher than Japan’s customs- cleared imports of 3,648,372 bpd. The International Energy Agency estimates that India will become the world’s largest oil importer by 2020.