The Statistical Review of World Energy report from the industry reveals that global energy demand increased by 1% last year, with fossil fuels still dominating the energy supply at 82%. Despite a significant expansion in renewable energy capacity, including a record-breaking increase of 266 gigawatts in solar and wind power, oil, gas, and coal products maintained their stronghold in meeting most of the energy demand. This persistence of traditional energy sources in 2022 led to a rise in global energy-related greenhouse gas emissions, contrary to the objectives of the Paris Agreement, according to Juliet Davenport, the president of the UK-based Energy Institute.

Published by the Energy Institute in collaboration with KPMG and Kearny for the first time, the annual report serves as a benchmark for the industry. It highlights the urgent need to reduce greenhouse gas emissions by approximately 43% by 2030, based on 2019 levels, to align with the Paris Agreement's goal of limiting global warming well below 2 degrees Celsius above pre-industrial levels.

Key points from the 2022 report are as follows:

 

CONSUMPTION

• Global primary energy demand grew by approximately 1%, a slowdown from the previous year's 5.5%, but still remained around 3% higher than pre-coronavirus levels in 2019.
• Energy consumption increased in all regions except Europe, including Eastern Europe.
• Renewable energy sources, excluding hydropower, accounted for 7.5% of global energy consumption, showing a 1% increase compared to the previous year.
• Fossil fuels maintained their share of 82% in global energy consumption.
• Electricity generation rose by 2.3%, with wind and solar power reaching a record share of 12% in the power sector, surpassing nuclear power (which experienced a decline of 4.4%) and meeting 84% of the net electricity demand growth. Coal's dominance in power generation remained at approximately 35.4%.

 

OIL

• Oil consumption increased by 2.9 million barrels per day (bpd) to reach 97.3 million bpd, although the growth rate slowed compared to the previous year.
• Compared to pre-Covid levels in 2019, oil consumption was 0.7% lower.
• The majority of oil demand growth was driven by increased usage of jet fuel and diesel-related products.
• Oil production increased by 3.8 million bpd, primarily led by OPEC members and the United States, while Nigeria witnessed the largest decline.
• Non-OECD countries saw the main increase in oil refining capacity, with a growth of 534,000 bpd.

 

NATURAL GAS

• Global gas demand decreased by 3% amid record prices in Europe and Asia, yet it still constituted 24% of primary energy consumption, slightly lower than the previous year.
• Gas production remained stable year-on-year.
• Liquefied natural gas (LNG) production increased by 5% to 542 billion cubic meters (bcm), similar to the previous year's pace. Most growth originated from North America and the Asia-Pacific region.
• Europe experienced significant growth in LNG demand, increasing imports by 57%, while countries in the Asia-Pacific region and South and Central America reduced their purchases.
• Japan replaced China as the world's largest LNG importer.

 

COAL

• Coal prices soared, reaching record levels with a 145% increase in Europe and 45% in Japan.
• Coal consumption rose by 0.6%, reaching its highest level since 2014, primarily driven by Chinese and Indian demand, while consumption in North America and Europe declined.
• Coal output increased by 7% compared to the previous year, with China, India, and Indonesia contributing the most to this growth.

 

RENEWABLES

• Renewable power growth, excluding hydropower, slightly slowed to 14%, but solar and wind capacity experienced a record increase of 266 gigawatts, with solar energy leading the way.
• China led in the addition of solar and wind power capacity.

 

EMISSIONS

• Global energy-related emissions, including industrial processes and flaring, rose by 0.8%, reaching a new high of 39.3 billion tonnes of CO2 equivalent.

 

MINERALS

• The prices of lithium carbonate surged by 335%, while cobalt prices increased by 24%.
• Lithium and cobalt production witnessed a rise of 21%.