Global energy demand increased by 1 percent last year, and despite record growth in renewables, fossil fuels maintained their dominant position, accounting for 82 percent of the energy supply.
The energy markets faced significant turmoil in 2022 due to Russia’s invasion of Ukraine, resulting in record-high gas and coal prices in Europe and Asia, according to the industry’s Statistical Review of World Energy report released on Monday.
The report highlighted that despite the largest-ever increase in renewables capacity, reaching 266 gigawatts, with solar leading the growth in wind power, oil, gas, and coal products remained firmly in the lead in meeting the majority of energy demand.
The president of the UK-based global industry body Energy Institute, Juliet Davenport, expressed concern that global energy-related greenhouse gas emissions continued to rise, going against the goals of the Paris Agreement.
This annual report, which has been a benchmark for the industry, was published for the first time by the Energy Institute in collaboration with consultancies KPMG and Kearny, taking over from BP, who had authored the report since the 1950s.
Scientists emphasize the need to reduce greenhouse gas emissions by approximately 43 percent by 2030 compared to 2019 levels to have a chance at meeting the international Paris Agreement’s objective of limiting global warming to well below 2 degrees Celsius above pre-industrial levels.
Here are some key points from the report regarding 2022:
CONSUMPTION
Global primary energy demand grew by approximately 1 percent, slower than the 5.5 percent growth of the previous year, but still around 3 percent higher than pre-coronavirus levels in 2019.
Energy consumption increased worldwide except in Europe, including Eastern Europe.
Renewables, excluding hydropower, accounted for 7.5 percent of global energy consumption, representing a 1 percent increase from the previous year.
Fossil fuels maintained their share of 82 percent in global energy consumption.
Electricity generation increased by 2.3 percent, a slowdown compared to the previous year. Wind and solar power reached a record share of 12 percent of power generation, surpassing nuclear energy, which declined by 4.4 percent. Wind and solar met 84 percent of the net electricity demand growth.
Coal remained the dominant source of power generation with a share of around 35.4 percent.
OIL
Oil consumption rose by 2.9 million barrels per day (bpd) to reach 97.3 million bpd, showing slower growth compared to the previous year. Compared to pre-Covid levels in 2019, oil consumption was 0.7 percent lower.
The growth in oil demand mainly stemmed from increased usage of jet fuel and diesel-related products.
Oil production increased by 3.8 million bpd, primarily driven by OPEC members and the United States, while Nigeria experienced the largest decline.
Non-OECD countries witnessed a growth of 534,000 bpd in oil refining capacity.
NATURAL GAS
Despite record prices in Europe and Asia, global gas demand decreased by 3 percent but still accounted for 24 percent of primary energy consumption, slightly lower than the previous year.
Gas production remained stable compared to the previous year.
Liquefied natural gas (LNG) production increased by 5 percent to 542 billion cubic meters (bcm), similar to the previous year’s pace. The growth was primarily seen in North America and the Asia-Pacific region.
Europe drove much of the LNG demand growth, increasing imports by 57 percent, while the Asia-Pacific region and South and Central America reduced their purchases. Japan surpassed China as the world’s largest LNG importer.
COAL
Coal prices hit record levels, rising 145 percent in Europe and 45 percent in Japan.
Coal consumption rose 0.6 percent, its highest level since 2014, driven mainly by Chinese and Indian demand, while consumption in North America and Europe declined.
Coal output was 7 percent higher than the previous year, with China, India and Indonesia accounting for most of the growth.
RENEWABLES
Growth in renewable power, excluding hydro-power, slowed down slightly to 14 percent but solar and wind capacity still showed a record increase of 266 gigawatts, with solar taking the lion’s share.
China added the most solar and wind power.
EMISSIONS
Global energy-related emissions, including industrial processes and flaring, were up 0.8 percent reaching a new high of 39.3 billion tonnes of CO2 equivalent.
MINERALS
Lithium carbonate prices jumped 335 percent. Cobalt prices were up 24 percent.
Lithium and cobalt production rose 21 percent.