Page 50 - Policy Economic Report - Jan 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The panel voiced the mutual recognition that global energy systems are facing heightened uncertainty
driven by geopolitical tensions and shifting trade dynamics. Speakers emphasised that rising demand from
emerging economies, and the accelerating pace of the energy transition has brought energy security,
affordability and sustainability in sharper focus, with no single pathway applicable to all countries.

Speaking from India’s perspective, Shri Hardeep Singh Puri underlined that energy availability is the lifeline
of a growing economy and a matter of national resilience. He noted that India has successfully navigated
recent global turbulence without shortages by diversifying sources, expanding supplier geographies and
unfurling reforms across the energy value chain.

Highlighting India’s ambition to increase the share of natural gas in its energy mix, Shri Puri stressed the
importance of global collaboration, investment and realistic transition pathways. Shri Puri reiterated that
the global transition efforts should recognise that continuing growth in energy demand can be met
through energy addition, not abrupt replacement as stable, predictable markets are in the shared interest
of producers and consumers alike.

Canada’s Minister of Energy and Natural Resources, HE Tim Hodgson, noted that a more fragmented and
mercantilist global trading environment has reinforced the importance of trusted partnerships and
diversified supply chains.

Highlighting Canada’s position as a major producer of oil, gas and critical minerals, he expressed strong
interest in deepening cooperation with India, particularly in the areas of LNG, critical minerals, oil supplies
and long-term energy trade. The Minister also underscored that middle powers must work together to
uphold free trade, reliability and non-coercive energy relationships.

Providing a global perspective, IEF Secretary General Jassim Al Shirawi highlighted rising global energy
demand driven by population growth, urbanisation, industrialisation, digitalisation and improving living
standards. He noted that oil and gas will continue to play a critical role even as electrification and
renewables expand as feedstocks for industry and petrochemicals.

The Secretary General cautioned that underinvestment, grid constraints, supply-chain concentration and
fragmentation could pose risks to energy security. He also called for sustained dialogue between
producers and consumers to manage the transition in a balanced and orderly manner.

The panel stressed that navigating uncertainty will require realism, adaptability and cooperation. It
identified investments across oil, gas, electricity grids, LNG, critical minerals and emerging technologies
as essential to ensuring that the energy transition remains inclusive, affordable and resilient.

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