The Energy Institute (EI) has published its first, and 72nd general edition, of the World Energy Statistical Review.
In a statement accompanying the report, EI noted that five key themes emerge from the data. One is that, post-Covid, transportation fuel demand patterns continued to return, “but with large variations across geographies and fuel types,” EI noted in the statement.
“China was a major outlier, particularly with jet fuel remaining significantly below its pre-Covid level, due to its ‘zero Covid policy’,” he said the organization
IS highlighted in the statement that another key issue is that the Ukraine conflict and reduced Russian supplies to Europe precipitated record international gas prices in Europe and Asia, “and unprecedented changes in trade flows global oil and gas markets”.
The continued strong pace of renewables deployment in the power sector was another issue, EI revealed, “driven by solar and wind.”
“2022 saw the largest increase in new build capacity for wind and solar. Together they reached a record 12 percent share of power generation, with solar at 25 percent and wind power by 13.5 percent,” EI said.
“Renewables (excluding hydropower) met 84 percent of net electricity demand growth in 2022,” the organization added.
EI highlighted that another issue was that global primary energy consumption grew by around one percent in 2022, “bringing it to almost three percent above the pre-Covid level of the 2019”.
“Within that, gas fell by three percent and renewables (excluding hydrocarbons) rose by 13 percent,” EI said.
“The dominance of fossil fuels remained almost unchanged at nearly 82 percent of total consumption,” EI added.
In addition, EI noted that global energy-related emissions continued to grow, “by 0.8 percent, despite strong growth in renewables.”
Oil, Gas
In the statement, EI highlighted that oil consumption has continued to increase, “rising by 2.9 million barrels per day to 97.3 million barrels per day, a smaller increase than that observed between 2020 and in 2021”. However, consumption remained 0.7 percent below 2019 levels, EI noted.
Global oil production rose by 3.8 million barrels per day in 2022, EI said in the statement, adding that OPEC+ accounted for more than 60 percent of the increase.
“Among all countries, Saudi Arabia (1,182,000 barrels per day) and the United States (1,091,000 barrels per day) saw the largest increases,” EI said.
“Nigeria recorded the largest drop in production (184,000 barrels per day) and production in Libya decreased by 181,000 barrels per day,” the organization added.
In its statement, EI revealed that global demand for natural gas declined by three percent in 2022, “falling just below the 4 Tcm mark reached for the first time in 2021.”
“Its share in primary energy in 2022 decreased slightly to 24% (from 25% in 2021),” EI said.
Global gas production remained relatively flat compared to 2021, EI said in the statement. LNG supply was said to grow five percent to 542 Bcm in 2022, “similar to 2021.”
“Increases in LNG supply came mainly from North America (10 Bcm) and APAC (8 Bcm). All other regions made a positive contribution to LNG supply growth in 2022 (8 Bcm),” he noted HE.
High level view
In her statement, EI president Juliet Davenport said: “The EI statistical review provides a high-level view of how our energy systems are adapting to escalating crises geopolitical and environmental”.
“2022 saw some of the worst impacts of climate change – devastating floods affecting millions in Pakistan, record heat events in Europe and North America – but we must look for positive news about the energy transition in this new data” . Davenport added.
“Despite strong growth in wind and solar power in the electricity sector, global energy-related greenhouse gas emissions rose again. We are still moving in the opposite direction to what the Agreement requires of Paris”, continued the president of the IE.
EI chief executive Nick Wayth said that “as the world emerged from the pandemic and its impact on demand, 2022 saw energy markets again in crisis, and the conflict of “Ukraine changed supply assumptions around the world.”
“This, in turn, precipitated a price crisis and deep cost-of-living pressures in many economies,” he added.
“EI Statistical Review shows how global energy markets struggled to respond to the crisis, how trade and energy flows were contorted and how vulnerable our economies are to supply and price shocks” , he said.
Simon Virley CB FEI, Vice President and UK Head of Energy and Natural Resources at KPMG, who partnered with EI for the latest statistical review, said: “The EI Statistical Review is essential reading for policymakers around the world trying to balance the energy trilemma”.
“All aspects of the trilemma came under severe strain in 2022. Despite record growth in renewable energy, the share of global energy that comes from fossil fuels remains stubbornly at 82 percent, which should act as a clarion call to governments to inject more urgency into the energy transition,” he added.
BP
In February this year, BP and EI announced in a joint statement that the new “custodian” of the World Energy Statistical Review will be EI.
The joint statement described the statistical review as “the most comprehensive, objective and timely collection and analysis of global energy production, consumption and emissions data”. The review had been published by BP since 1952.
When Rigzone asked BP and EI in February whether the new version of the review would differ from BP’s in any way, a BP spokesman said: “Definitely, the statistics review will continue to be published in a similar to now (including paywall); responsibility for producing the statistics review will be taken by the Energy Institute, but BP will remain closely involved in the short term to ensure continuity.”
Also responding to the question, an EI spokesperson told Rigzone at the time: “The Statistical Review has a rich legacy thanks to BP and so continuity is really important as EI takes it forward from this year.”
“Over time, what matters is that the data sets we publish keep pace with the changing energy system, which is what BP has ensured for the past seventy years, and we will do so,” added the spokesperson HE.
In November 2022, amid reports that BP was considering halting publication of its Statistical Review of World Energy, Rigzone asked the company to confirm whether it would stop publishing the annual report.
“We are looking at options for publishing the annual statistical review of world energy, but we have not yet made a decision,” a BP spokesman told Rigzone at the time.
“We know the review is a valuable source of objective and comprehensive data and ensuring this continues is an important consideration,” the spokesman added.
“However, the energy world is changing rapidly and becoming increasingly complex, and our Energy and Economics team is focused on understanding different elements of the energy transition and its implications for BP.” the spokesman continued.
To contact the author, please send an email andreas.exarcheas@rigzone.com
