India is expected to increase its purchases of U.S. oil and gas following former U.S. President Donald Trump’s recent announcement to maximize American energy production. Trump’s declaration of a national energy emergency aims to expand U.S. energy exports and bolster strategic reserves, a move welcomed by major global energy consumers.
“There is a possibility of more energy purchase between India and the U.S.,” said India’s Oil Minister, Hardeep Singh Puri, on the sidelines of an event. He emphasized that additional U.S. energy in the global market would help stabilize supply, which has been disrupted by geopolitical tensions and sanctions.
India, the world’s third-largest importer and consumer of oil, is heavily reliant on foreign energy sources, with over 80% of its oil needs being met through imports. Refiners in the country have been grappling with surging oil prices and increased shipping costs, exacerbated by Washington’s recent sanctions on Russian insurers, tankers, and oil producers. These measures are part of a broader response to Russia’s ongoing conflict with Ukraine, which has significantly reshaped global energy trade.
Russian oil, which accounted for over a third of India’s imports in the past year, has become less accessible due to tightening U.S. sanctions. As a result, Indian refiners are pivoting back to traditional Middle Eastern suppliers while exploring increased energy trade with the United States.
During his inaugural address, Trump described U.S. energy reserves as “liquid gold” that could help restore America’s economic dominance. His administration’s push to expand energy exports aligns with India’s need to diversify its energy sources amid global market volatility.
India’s increased interest in U.S. energy also comes at a time when global oil markets are under strain from reduced supplies and rising demand. Puri, however, assured that there was no shortage of oil in the market, suggesting that strategic partnerships could alleviate some of the economic pressures.
This potential shift towards U.S. energy underscores the interconnectedness of global energy markets and the influence of geopolitical developments on trade dynamics. For India, strengthening ties with the U.S. in energy procurement could enhance its energy security and mitigate risks associated with reliance on a single region or supplier.
As the global energy landscape evolves, India’s efforts to balance its imports between traditional allies and emerging suppliers like the U.S. will play a critical role in shaping its economic and strategic outlook.
