Oil and gas have subtly reappeared as key components of the world’s energy mix after years of common conviction that the demand for oil will soon peak owing to an accelerated transition towards renewable energy. Leading energy forecasts from BP, McKinsey, and the International Energy Agency (IEA) have revised demand projections upward for 2050 and moved the anticipated peak oil demand timetable into the 2030s, defying prior expectations. India’s crucial role, which is predicted to generate the highest proportion of global demand growth—outpacing even China and Southeast Asia combined—is a major point of agreement among these projections.
Infrastructure constraints, persistent geopolitical conflicts, and governmental delays in the adoption of sustainable energy can all be blamed for oil’s resurgence in 2025. Due to supply disruptions and increased energy prices brought on by the protracted conflict between Russia and Ukraine, a number of European countries who had historically been strong proponents of the energy transition were forced to rely more heavily on fossil fuels.
President Donald Trump’s return to pro-fossil fuel policy in the US further solidified this change. Together, these advancements restored attention to oil on a worldwide scale. In light of this, India’s oil and gas industry saw significant shifts in import patterns, legislative changes, and demand expansion, highlighting its growing clout in international energy markets.
Despite international criticism, India’s reliance on crude oil imports remained substantial, with Russian crude retaining a large role. For the most of the year, more than one-third of India’s crude imports came from Russian oil, despite the United States’ repeated calls for
India to cut back on its purchases from Russia and its 50% tax on Indian exports. Only in late November did this trend slow down when key Russian exporters like Rosneft and Lukoil were subject to sanctions, which caused imports to drop from about 1.7–1.8 million barrels per day to less than 1 million barrels per day.
However, anticipation of a total stop to imports were impractical because Russian crude itself was not officially sanctioned. In order to continue reaping the benefits of cheap crude, Indian refiners changed their procurement tactics and turned to non-sanctioned Russian sources. In order to reduce reliance on any one region, India simultaneously diversified its energy basket by boosting US crude imports and growing LNG and LPG commerce.
The Petroleum and Natural Gas Rules, 2025 were a major regulatory change on the home front. The new structure sought to streamline licensing procedures, modernize governance, and draw in additional funding for production and exploration.
The oil and gas industry is at a difficult crossroads as 2025 comes to an end. India is solidly positioned in the center of the changing global energy scene heading into 2026 thanks to its growing demand, regulatory changes, and refining strength, even while geopolitical concerns and climate pressures continue to impact the industry’s future.