Page 53 - Policy Economic Report - Jan 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

and support for the development and deployment of cleaner technologies as energy demand grows.
Recognizing that there exists a huge potential for cooperation in clean energy value chains, the Ministers
noted the opportunities for collaboration in renewable energy, including hydrogen, biofuels and
sustainable aviation fuel; battery storage; critical minerals; clean technologies; electricity systems; energy
supply chain resilience, and the application of artificial intelligence in the energy sector.

The Ministers noted the ongoing collaborative efforts to advance the global energy transition via the
global development and deployment of biofuels through Global Biofuels Alliance (GBA), where Canada is
an observer.

Building on the deliberations, both sides affirm:

i. The importance of energy security and diverse energy supply chains. India, as a major consumer
and Canada as a safe, secure and reliable supplier, can act in partnership to deepen trade and
ensure stable and secure energy supplies. India and Canada will collaborate to promote and
strengthen cooperation across trade in the energy sector, including services.

ii. Their commitment to continued Government-to-Government dialogue and cooperation, such as
through the India-Canada Ministerial Energy Dialogue, and regular and ongoing expert
collaboration.

iii. The intention to work in partnership to support meaningful Business-to-Business, or Business-to-
Government, collaboration across the value chain.

iv. Their mutual intent to continue supporting work through bilateral and multilateral mechanisms,
as well as with industry partners, to support climate- objectives, for the benefit of the global
community.

IEW 2026: OPEC Outlook Projected India as the Largest Driver of Global Energy Demand Growth

India is projected to be the largest contributor to global oil demand growth till 2050, according to
the World Oil Outlook 2025 presented by Dr. Abderrezak Benyoucef, Head, Energy Studies Department,
Research Division, Organization of the Petroleum Exporting Countries (OPEC), at India Energy Week 2026
being organised in Goa from 27th to 30th January 2026.

Presenting OPEC’s flagship long-term outlook on the Resilience Stage on the second day of the event, Dr.
Benyoucef stated that India alone is expected to add 8.2 million barrels per day of oil demand by 2050.
This growth will be driven primarily by transportation, petrochemicals and industrial activity. At the global
level, oil demand is projected to continue rising over the medium and long term, reaching nearly 123
million barrels per day by 2050, with demand growth concentrated in non-OECD regions.

The report projects India to be the largest and most stable contributor to global primary energy demand
growth. India’s total primary energy demand is expected to almost double, increasing from around 22
million barrels of oil equivalent per day in 2024 to about 43.6 million barrels of oil equivalent per day by
2050.

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