India welcomes Trump's energy push, sees potential for increased oil imports from US
New Delhi: India has welcomed US President Donald Trump’s commitment to boosting domestic oil and gas production and exporting energy globally, as outlined during his inaugural address after assuming office, media reports said.
Minister for Petroleum and Natural Gas Hardeep Singh Puri expressed optimism about enhanced energy trade between the two nations, according to a Financial Express report.
“There is a possibility of more energy purchases between India and the US,” he noted, adding, “More US energy coming into the market is welcome,” according to the report.
However, Puri clarified that global oil supplies are currently sufficient.
Trump’s energy strategy, which includes increasing domestic production, declaring a national energy emergency, and withdrawing from the 2015 Paris climate accord, contrasts sharply with the clean energy policies of his predecessor, Joe Biden.
Trump also intends to address inflation by reducing energy costs and bolstering oil reserves.
The US, producing approximately 13 million barrels of oil per day, is expected to raise output by an additional 1.4–1.5 million barrels daily in the short term.
Trump’s policies could benefit India, the world’s third-largest oil consumer, which imports 85% of its requirements.
In December 2024, India imported 44,633 barrels per day of US oil, a mere 1% of total imports, significantly lower than the 207,223 barrels per day imported in November.
Meanwhile, Russia remained India’s top supplier, accounting for 31% of total crude imports.
Growing US crude output has created challenges for OPEC+, prompting production cuts to maintain market share.
Following new sanctions on Russia, Indian refiners are diversifying their sourcing to include Middle Eastern and African suppliers, with US oil imports likely to rise further.
Trump’s focus on fracking and higher US energy output is expected to keep global oil prices muted, benefiting Indian oil marketing companies and downstream users.
As India’s refining capacity and oil demand expand, efforts to diversify crude imports will remain a priority to reduce dependency on select suppliers.
“America will be a manufacturing nation once again,” Trump declared, emphasising the nation’s vast oil and gas resources.
“We will bring prices down, fill our strategic reserves, and export American energy all over the world.”
Analysts forecast an uptick in US oil production in 2025 with new wells coming online, reinforcing the potential for India-US energy trade amidst shifting global dynamics.
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