BP – “How energy evolved in 2018”

PortandTerminal.com, June 15, 2019

BP released its 68th annual edition its Annual Statistical Review last week which provides a detailed overview of global energy production and consumption in 2018. The report is one of the private statistical resources most utilised by academics and decision makers, and one of the most complete and trustworthy sources of its type available.

Bob Dudley, BP Group Chief Executive

The world consumption and production of energy in 2018 is failing to meet the Paris Agreement on Climate Change. During 2018, the consumption of energy at a global level grew by 2.9%. That’s nearly double the average rate of the past decade that had been 1.5%.

Spencer Dale, BP Chief Economist

The main presentation, by the chief economist of the company Spencer Dale, is entitled “Energy in 2018: an unsustainable path”. Mr Dale provides a frank and startling look at a world that knows that it is destroying itself but seems unable to stop doing so.

Fossil fuels still rule our planet

In a big year for energy demand growth overall, power demand increased even more strongly, up by 3.7%. While there are encouraging signs of a shift to carbon friendly sources of energy, the burning of fossil fuels still dominates global energy production.

Oil Consumption vs Oil Production

Oil consumption grew by 1.4 million bbl/day in 2018 but was more than met by world suppliers who increased their production by 2.2 million bbl/day.

Almost all new oil exports came from the US

America increased its oil exports in 2018 by 2.2 million bbl/day.

What +2% more carbon emissions means

The world needs carbon emissions to fall dramatically, but they continue to grow. And energy-related emissions are not just growing – they accelerated in 2018, increasing at their fastest rate for 7 years.

Carbon emissions grew by 2.0%, in 2018, the fastest growth for seven years.

Summary

Renewables and the move towards electrification can play an important part in the global energy transition, but only if it is accompanied by a decarbonization of the power sector.