The world is moving away from overwhelming dependence on fossil fuel.
Within the fossil fuels, gas is preferred over coal.
The share of oil has fallen from 36% in 2005 to 33% in 2015.
Share of natural gas has increased from 23% to 24% during the same period.
Renewable energy (including nuclear and large hydro) too has gone up from 12.5% to 14% in the period 2005-15.
Supply of Natural Gas
The success of horizonal drilling combined with the technology of hydraulic fracture, has led to increase in the production of natural gas.
The price of gas is lower than that of oil.
It is also one-third lesser as carbon emitting than oil.
This is why gas will continue to be preferred over oil.
Prices of Oil and Gas are falling
Oil and gas prices have softened, and this is triggering energy policy reforms across the world.
The prices of oil and gas have fallen by 50% and 70%, respectively over 2014.
Many oil importing countries including India have been able to attempt bold petroleum pricing reforms.
Countries including India are in a sound fiscal position to attempt larger energy policy reforms.
Maturity of Renewable Energy Technologies
Prices of wind and solar technologies have declined sharply in the recent years.
This has led to a change in the relative importance of energy sources.
Tropical countries, are richly endowed with wind and solar energy sources.
With the help of technologies, India is in a position to harness renewable energy sources in an innovative manner to meet energy requirements at decentralized locations.
Climate Change Concerns
The world has come to realize that there is a relationship between energy use and poor environmental outcomes.
There is a heightened consciousness of the need to fix poor air quality standards in Indian cities.
