The US wants to expand oil and gas sales to India as Donald Trump pressures New Delhi to reduce Russian crude purchases under new tariff powers.
The United States wants to become a major supplier of India’s energy needs as President Donald Trump’s administration increases pressure on New Delhi to reduce purchases of Russian oil.
A senior US State Department official said Washington was expanding hydrocarbon exports and wanted to provide India with more crude oil, liquefied natural gas and liquefied petroleum gas. The official also identified Venezuela as a potential alternative supplier following a US-backed agreement providing American companies with access to large Venezuelan oil reserves.
US Promotes Alternative Energy Supplies
The State Department official described India as a country with “massive energy needs” that has long sought to diversify its suppliers. The US is currently the world’s largest LPG exporter and its second-largest LNG exporter, according to the official.
Washington believes rising American production and renewed access to Venezuela’s oil sector could provide India with alternatives to Russian crude. However, reviving Venezuelan production and restoring damaged infrastructure may take time.
Energy discussions are expected to continue between senior officials, including External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio.
Trump Gains New Tariff Powers
The outreach follows the enactment of US legislation authorising Trump to impose tariffs of up to 100% on countries making significant purchases of Russian oil and gas.
The authority does not mean tariffs will be imposed immediately. The legislation includes a broad national-security waiver, giving Trump discretion over how the measures are applied. Nevertheless, India and China—Russia’s two largest crude customers—face heightened uncertainty.
New Delhi has warned that punitive measures could damage bilateral relations and destabilise global energy markets. India maintains that its purchasing decisions are driven by affordability, supply security and the needs of its 1.4 billion citizens.
Russian Oil Imports Begin to Decline
India’s Russian crude imports fell 16.5% month-on-month in August to around 2.1 million barrels per day. Preliminary estimates suggest they could decline further to 1.9 million barrels per day in September, although Russia remains India’s biggest oil supplier.
Indian refiners are also exploring additional supplies from the Middle East and spot markets. Any major shift towards American or Venezuelan oil will ultimately depend on price, freight costs, refinery compatibility and supply reliability.
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