Global energy demand increased by 5.8% in 2021, exceeding 2019 levels by 1.3%, according to BP’s Statistical Review of World Energy .
Global energy demand increased by 5.8% in 2021, exceeding 2019 levels by 1.3%, according to BP’s Statistical Review of World Energy.
Between 2019 and 2021, renewable energy increased by more than 8 EJ. Consumption of fossil fuels was broadly unchanged. Fossil fuels accounted for 82% of primary energy use last year, down from 83% in 2019 and 85% five years ago.
Carbon dioxide emissions from energy use, industrial processes, flaring and methane (in carbon dioxide equivalent) rose 5.7% in 2021 to 39.0 GtCO2e, with carbon dioxide emissions from energy rising 5.9% to 33.9 GtCO2, close to 2019 levels. Carbon dioxide emissions from flaring and emissions from methane and industrial processes rose more modestly by 2.9% and 4.6% respectively
Oil prices averaged $70.91/bbl in 2021, the second highest level since 2015.
Oil consumption increased by 5.3 million barrels per day (b/d) in 2021 but remained 3.7 million b/d below 2019 levels. Regionally, most of the growth took place in the US (1.5 million b/d), China (1.3 million b/d) and the EU (570,000 b/d). Global oil production increased by 1.4 million b/d in 2021, with OPEC+ accounting for more than three-quarters of the increase. Among all countries, Libya (840,000 b/d), Iran (540,000 b/d) and Canada (300,000 b/d) saw the largest increases. Nigeria (-200,000 b/d), the UK (-170,000 b/d) and Angola (-150,000 b/d) reported the biggest declines.
Global natural gas demand grew 5.3% in 2021, recovering above pre-pandemic 2019 levels and crossing the 4 Tcm mark for the first time. Its share in primary energy in 2021 was unchanged from the previous year at 24%.
Coal consumption grew by more than 6% in 2021 to 160 EJ, slightly above 2019 levels and its highest level since 2014. China and India accounted for more than 70% of the growth in coal demand in 2021, increasing by 3.7 and 2.7 EJ, respectively. Global production matched consumption with an increase in supply of 440 Mt. China and India accounted for much of the increase in production, which was largely consumed domestically, as well as Indonesia, supporting higher exports. Notably, both Europe and North America showed an increase in coal consumption in 2021 after nearly 10 years of back-to-back declines
Renewable primary energy (including biofuels but excluding hydro) increased by around 5.1 EJ in 2021 – corresponding to an annual growth rate of 15%, stronger than the previous year’s 9%, and higher than that of any other fuel in 2021. Solar and wind capacity continued to grow rapidly in 2021, increasing by 226 GW, close to the record increase of 236 GW seen in 2020. China remained the main driver of solar and wind capacity growth last year, accounting for about 36% and 40% of the global capacity additions, respectively. Nuclear generation increased by 4.2% – the strongest increase since 2004 – led by China.
Electricity generation increased by 6.2% in 2021. Wind and solar reached a 10.2% share of power generation in 2021, the first time wind and solar power have provided more than 10% of global power and surpassing the contribution of nuclear energy. Coal remained the dominant fuel for power generation in 2021, with its share increasing to 36%, up from 35.1% in 2020. Natural gas in power generation increased by 2.6% in 2021, although its share decreased from 23.7% in 2020 to 22.9% in 2021.
The price of cobalt increased 63% in 2021 to average $51,000/ tonne. Similarly, lithium carbonate prices rose 58% to average $11,000/tonne. So far in 2022, mineral prices have continued to surge. Lithium production rose sharply by 27%, cobalt output was up by only 4%.
Spencer Dale, chief economist at BP, said: ‘In many ways, this sharp rebound in energy demand is a sign of global success, driven by a rapid recovery in economic activity as the widespread distribution of effective vaccines allowed for an easing in COVID-19 restrictions in many parts of the world and a return to our everyday lives. But it also highlights that the pronounced dip in carbon emissions in 2020 was only temporary: carbon equivalent emissions from energy (including methane), industrial processes, and flaring increased by 5.7% last year. Encouragingly, renewable energy, led by wind and solar power, continued to grow strongly and now accounts for 13% of total power generation. Renewable generation increased by almost 17% in 2021 and accounted for over half of the increase in global power generation over the past two years. The low-carbon energy sources and technologies needed to achieve a fast and deep decarbonization exist today – wind and solar power, biofuels, blue and green hydrogen, CCUS (carbon capture, use and storage), and carbon dioxide removals. The challenge is to apply them at unprecedented pace and scale.’
