New Delhi: The global oil market is moving into an era of plenty, said Oil & Natural Gas Corporation’s (ONGC) Chairman Arun Singh on Thursday. “We are moving into an era of plenty. The world has 9 mbd of surplus capacity lying in the valves. All you have to do is open the valves,” said Singh during a panel discussion, referring to the spare production capacity of about 9 million barrels per day (mbpd) lying with major oil producers like United Arab Emirates (UAE), Saudi Arabia, Iraq, Guyana, the United States (US) and Canada amidst a muted demand.
Singh said that the last quarter of 2025 may see a surplus of 1 million barrels “unless they remove this from the market.”
According to the International Energy Agency’s (IEA) oil market report, global oil production is around 103.3 million barrels per day. The oil cartel. OPEC+, has kept more than 5 mbpd of its production capacity on hold in order to support prices amidst a weakening demand. The IEA said in its latest report that oil’s share of total energy demand fell below 30 percent for the first time ever, 50 years after it peaked at 46 percent and oil demand grew more slowly, rising by only 0.8 percent in 2024.
However, even as demand for oil weakens globally, including in China because of its rapid shift towards electric vehicles, oil demand in India is poised to grow. Singh said that India’s oil demand will continue to grow at 3-4 percent. He added that the demand-supply imbalance has led global oil majors to scale back exploration, however, the scene is totally different in India. India has no option but to continue exploring as it is dependent on imports, said Singh.