01.10.2014 • NewsBiofuelsEnergy

Energy in 2013: Global Markets Reflect Broader Themes

(CHEManager International 10/2014)     World consumption     The world of energy in 2013 echoed broader global themes - such as emerging differences in economic performance, geopolitical uncertainty and ongoing debates about the proper roles of government and markets. According to the BP Statistical Review of World Energy 2014, the world primary energy consumption accelerated in 2013 despite the stagnant global economic growth (fig. 1). Consumption increased for all fuels, reaching record levels for every fuel type except nuclear power. For each of the fossil fuels, global consumption rose more rapidly than production. Global primary energy consumption increased by 2.3% in 2013, an acceleration over 2012 (+1.8%). Oil remains the world's dominant fuel, with 32.9% of global energy consumption, but it also continued to lose market share for the fourteenth consecutive year.

Regional consumption     Regionally, energy consumption growth was below average everywhere except North America. EU consumption continued to decline, hitting the lowest level since 1995 (despite economic growth of 35% over this period). The Asia Pacific region once again accounted for the largest increment to global primary energy consumption and continues to account for the largest share (40.5% of the global total). The region accounted for over 70% of global coal consumption for the first time in 2013, and coal remains the region's dominant fuel (fig. 2). Oil is the dominant fuel in all other regions except Europe & Eurasia and the Middle East where gas is dominant. In the Middle East, gas surpassed oil as the dominant fuel in 2013.

Fossil fuel reserves-to-production ratios     After global coal prices have fallen for two years in a row, coal is extending its competitive edge in power generation and was the fastest-growing fossil fuel, with China and India combined accounting for 88% of global growth. In contrast natural gas consumption growth decelerated and grew at a below-average rate. Coal remains - by far - the most abundant fossil fuel by reserves-to-production (R/P) ratio (fig. 3). Non-OECD countries hold the majority of proved reserves for all fossil fuels, and the highest R/P ratios for oil and natural gas. By region, the Middle East holds the largest reserves for oil and natural gas, and the highest R/P ratio for natural gas; South and Central America hold the highest R/P ratio for oil. Europe & Eurasia holds the largest coal reserves, and the highest R/P ratio.



Biofuels production     Biofuels have increased in popularity because of rising oil prices and the need for energy security. Global biofuels production grew by 6.1% (80,000 b/doe) in 2013 (fig. 4), driven by increases in the two largest producers: Brazil (+16.8%) and the US (+4.6%). The increased biofuels output in North America, South and Central America and Asia Pacific outweighed declines in Europe and Eurasia. Global ethanol production increased 6.1%, the first increase in two years. Biodiesel production increased 6.2%, despite declines in South and Central America and Europe and Eurasia. The International Energy Agency (IEA) has a goal for biofuels to meet more than a quarter of world demand for transportation fuels by 2050 to reduce dependence on petroleum and coal.

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