The 61st annual report, ‘The BP Statistical Review of World Energy, 2012,’ has been released. The report emphasizes that the ever-increasing demand and supply issues are the two major energy topics of 2011.
The ‘Arab Spring’ had a severe impact on oil and gas supplies, especially the complete but short-term loss of Libyan supply, while the tragic accident in Fukushima, Japan, had resulted in unexpected impact on nuclear and other energy forms all across the globe. These effects increased energy prices in most part of the globe, with oil prices marking more than $100 per barrel, a record average value.
On the other hand, worldwide energy consumption achieved a growth rate of 2.5%, which is close to the historical average value; while the share of emerging economies continuously increasing. The energy demand of OECD countries declined by nearly 0.8% in 2011, but emerging economies witnessed 5.3% growth.
On an average, prices of brent oil were 40% more than in 2010, reaching a record value of $111.26 per barrel. Gas prices also rose in proportion to oil prices all over the world except in North America. The growth of global consumption of natural gas was 2.2%. Growth rate was below average in all other markets except North America, where the shale gas revolution increased growth by lowering prices. Gas consumption in the European Union declined to record level of -9.9% due to weak economy, warm weather, high prices, and increasing share of renewable power.
The growth of oil demand was below 1%, while that of gas was 2.2%. Coal witnessed a growth of 5.4% worldwide and 8.4% in the emerging economies. Fossil fuels still lead the overall energy consumption, representing 87% of market share. Renewables witnessed a strong growth but still accounted for 2% of the worldwide energy consumption. Nuclear output declined to 4.3%, while hydro-electric witnessed 1.6% growth and global biofuel production achieved 0.7% growth. Renewable energy utilized for power production increased by an above average 17.7%. Although worldwide carbon dioxide emissions increased in 2011, the growth rate is slower than in 2010.
Markets provided the ability to handle these disruptions by leading towards the knock-on effect of innovation, competition, and growth to create the economical and reliable energy supplies. The shale gas breakthrough in the US lowered gas prices and with shale liquid production, the country achieved the largest oil production beyond OPEC for a third straight year. These results proved that open energy markets are the key to bring stability.
Source: http://www.bp.com
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