Global Energy Demand Hits Record High as Fossil Fuels Refuse to Fade

Demand for all major forms of energy reached a record high last year, with green power expanding but not replacing fossil fuels. The Energy Institute's annual statistical review revealed that global demand for oil, gas, coal, nuclear, hydro, and renewable energy increased year-on-year for the first time since 2006. This growth, driven primarily by China and India, led to a 1% rise in energy-related carbon emissions, which reached a new record high. The surge in fossil fuel consumption offset the gains made by renewable energy, with the latter accounting for only a fraction of the overall increase.

Key Takeaways:

• Global demand for energy reached a record high last year, with all major forms of energy increasing in demand.
• China remained the world's largest emitter, accounting for almost a third of global carbon emissions and generating 60% of its electricity from coal.
• China, however, also drove the growth in renewable energy, with over 60% of global wind and solar installations last year.
• The continued growth in fossil fuel demand led to a 1% increase in energy-related carbon emissions, reaching a new record high.
• The US oil production hit a record high, exceeding 20 million barrels a day for the first time, but may have peaked as oil wells go into natural decline.
• Solar power generation jumped almost 28% globally last year, putting it on track to surpass wind output this year or next.
• The growth in renewable energy was not uniform, with Europe's renewable energy generation growing by only 7% last year, significantly lagging the global average.
• Rising financing costs, permitting delays, and supply chain issues affected the growth of renewable energy in Europe.

Statistics:

• Global demand for energy reached a record high, with all major forms of energy increasing in demand.
• Energy-related carbon emissions rose to a new record high, increasing by 1%.
• China accounted for almost a third of global carbon emissions and generated 60% of its electricity from coal.
• US oil production hit a record high, exceeding 20 million barrels a day for the first time.
• Solar power generation jumped almost 28% globally last year.
• Europe's renewable energy generation grew by only 7% last year.

Sources:

• Energy Institute's annual statistical review of world energy
• KPMG's energy and natural resources report
• Energy Institute report featuring Andy Brown, president and deputy chairman of Orsted