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BP Statistical Review of World Energy finds gas fastest growing fuel
Petroleum News Alaska Staff
The BP Statistical Review of World Energy 2001 found energy markets were put to the test in 2000 with crude oil prices reaching levels not seen since the early 1980s as supplies remained tight for most of the year. The review, published June 27, found natural gas prices lagged oil prices but followed upwards, reflecting the impact of contractual links and competition between fuels, according to the review.
Oil demand growth was weak in 2000 as high prices encouraged conservation and substitution into alternative fuels, with coal consumption, for example, increasing for the first time since 1996. The review also found that crude oil demand growth weakness appears to have carried into 2001.
With both OPEC and non-OPEC oil production strong, global oil production capacity appears to be growing faster than demand. Energy consumption up 2.1 percent World primary energy consumption grew by a relatively strong 2.1 percent in 2000, the review found, following two years of virtually no growth in 1998 and 1999. Natural gas retained its position as the fastest growing fossil fuel. Energy consumption rose by 2.7 percent in North America (thanks in part to colder winter weather) but more slowly in the European Union and Japan, where consumption rose by a modest 1.1 percent.
The emerging economies of Asia (excluding China) saw consumption continuing to bounce back from 1998 lows: consumption grew by 5.1 percent in 2000. The picture in China was very different: total energy consumption fell for the fourth consecutive year as a decline in coal use of more than 6 percent was only partially offset by increased oil and gas consumption.
Oil prices rose dramatically, averaging 58 percent higher than in 1999 at $28.98 per barrel for Brent crude oil — the highest price since 1983. OPEC production rose by 5.6 percent compared to 1999 as the organization reversed the quota cuts of that year. Increases in production in Saudi Arabia, Iran and Kuwait took the Middle East’s share of global production to 31 percent. Non-OPEC supply recovered after falling in 1999, rising by 2.1 percent as investment and production began to respond to higher prices. Oil consumption growth was relatively weak, growing by only 1 percent, as consumers reacted to high prices. Gas fastest growing fuel Gas was the fastest growing fuel in 2000, with global consumption rising by 4.8 percent — the highest rate since 1996. The review found that gas demand increased in all regions but grew especially fast in Asia-Pacific, where it increased by almost 8 percent. Chinese consumption was exceptionally strong, rising by 16 percent. The United States and Canada also outstripped the global average, with a 5.1 percent rise. In the Former Soviet Union, gas consumption increased for the second year running, rising by 2.9 percent and reversing a trend of near continuous decline since the early 1990s.
Globally, natural gas production increased by 4.1 percent. The biggest increases occurred in countries tapping into the even faster growing international trade in natural gas: output grew by more than 50 percent in Nigeria and Oman as new liquefied natural gas projects began building towards capacity. Production in Turkmenistan more than doubled as Russia pulled in additional Turkmen gas to compensate for declining domestic production.
Global coal consumption increased for the first time since 1996 as coal prices lagged well behind rapidly increasing oil and natural gas prices. A fourth consecutive annual fall in Chinese demand was more than offset by vigorous growth in the rest of Asia, Europe and the United States. Nuclear power generation increased in all regions, averaging 2.7 percent at the global level, in line with the 10 year average. Hydroelectric generation increased by 1.7 percent as a 14.1 percent decline in U.S. generation was counteracted by strong gains in Africa, South America and Asia-Pacific.
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