It is India and China that call the tune in the energy market. Authorities of these countries make use of the current situation benefiting not only in economic but also in political terms. Here, the appetite for crude has been increasing exponentially in the recent 25 years. Both India and China consume 16% of global oil orders. Only the US beats them with 20%.
According to the growth rates, experts anticipate that the joint share of two countries will make up 30% by 2040. Currently, these players already change former business rules according to their preferences. Suppliers strive to gain access to the markets. India and China are offered the most appealing partnerships and the lowest prices. Besides, oil exporters start creating new trading routes only to meet the needs of the Chinese and Indian buyers.
India’s crude imports cover 80% of the country’s demand. The state is heading towards energy security guided by Premier Narendra Modi. Oil & Natural Gas Corp Ex-Chairman Sudhir Vasudeva said that if they want to reach independence, they have to look for foreign assets. Such a strategy explains the purchase of stakes in subsidiaries of Russia’s Rosneft (29.9% in Taas-Yuryah Neftegazdobycha and 23.9% in Vankor oilfield). Oil and Natural Gas Corporation Limited is an Indian oil and gas company. Rosneft offered it the 11% stake in Vankorneft in addition to the already existing 15% stake purchased in September 2015.
