Oil output falls 8% yrly without investment

Betul (Goa): Global oil production would decline by around 8 per cent annually - equivalent combined annual output of Brazil and Norway - over the next decade if investment in existing oil and gas production were to stop today, Oil Minister Hardeep Singh Puri said on Tuesday, underscoring the continued importance of conventional energy even as clean energy scales up.

Speaking at the inaugural ceremony of India Energy Week 2026, Puri said that while renewable energy has expanded rapidly and now accounts for nearly one-third of global electricity generation, the global energy transition cannot be built on replacement alone.

"The history of energy has never been about replacement alone. It has always been about addition," he said, adding that energy transition, energy security and system resilience must advance together to meet rising global demand. Stating that over the past decade, renewables have grown rapidly, he said the share of clean energy in global electricity generation has increased from around one-fifth to nearly one-third, supported by falling costs and policy momentum. "Yet conventional energy continues to play a critical role," he said. "If investment in existing oil and gas production were to stop today, global oil output would decline by around 8 per cent annually over the next decade, equivalent to losing more than the combined annual production of Brazil and Norway each year."

He said new sources have consistently complemented existing ones, allowing systems to expand and adapt. This remains the defining reality of the global energy transition. "These trends underline a clear truth. While renewable and alternative energy sources are expanding at pace, conventional energy will remain essential to meet growing demand," he said. "Energy transition, energy security, and system resilience must advance together, and energy addition has emerged as a practical pathway to balance these priorities." Puri said the pressure on the global energy system has intensified in the last one year, and the energy order continues to evolve in complex ways. Nearly 80 per cent of incremental global energy demand came from emerging and developing economies, with close to 60 per cent originating in Developing Asia.

As these regions grow and gain wider access to mobility, cooling, and digital services, energy demand will rise further, both in scale and complexity, he said.