BP recently released its annual Statistical Review of World Energy, a country-by-country and fuel-by-fuel analysis of the latest worldwide energy data. The report contains several notable trends in domestic and global energy markets, including the enormous impact of the American shale boom. Highlights of the data include:
* In 2012, the U.S. led the world with the largest oil and natural gas production increases, and saw the largest gain in oil production in U.S. history.
* Coal remains the fastest-growing fossil fuel in the world, even as U.S. coal consumption declined by 11.9 percent. China was the driving force, consuming half of the world’s coal last year and accounting for all of the net growth in global coal consumption.
* 2012 marked the largest year-to-year decline of global nuclear output in history, with Japanese output falling by nearly 90 percent.
* Renewable energy saw “mixed results” in 2012. Global biofuels production declined for the first time since 2000, led by a 4.3 percent drop in the U.S. However, renewable energy used in electrical generation grew by 15.2 percent, with wind accounting for more than half of the growth.
* Global growth in energy consumption slowed in 2012, partly due to continued economic sluggishness but also because individuals and businesses adapted to higher prices by becoming more energy efficient.
Oil, Coal, and Natural Gas Dominate Consumption
Last year, oil, coal, and natural gas comprised 87 percent of global energy consumption. Oil accounted for 33.1 percent of energy consumption worldwide and remains the world’s leading energy source. Coal made up 29.9 percent of world energy consumption, while natural gas comprised 23.9 percent. Compared to the rest of the world, the U.S. consumes slightly more natural gas, more nuclear power, less coal, and less hydroelectric power. The following chart displays world energy consumption by source:
Middle East Oil Loses Ground
One piece of good news in the BP report is that as oil remains the world’s largest source of energy, the distribution of oil resources is becoming increasingly dispersed. As the next chart shows, the share of proved oil reserves found in the Middle East has shrunk from more than two-thirds in 1992 to less than half in 2012. South and Central America have taken the biggest chunk out of the Middle East’s share, as their reserves jumped from 7.6 percent in 1992 to 19.7 percent in 2012.
Biofuels Production Declines
Worldwide biofuels production declined by 0.4 percent in 2012 for the first time since 2000. Increased production in Central and South America (2.3 percent) and the Asia Pacific (17.3 percent) was outweighed by declines in North America (-4.1 percent) and Europe (-1.5 percent), likely due to North America accounting for 47 percent of global biofuels production. Ethanol, the largest source of biofuels, drove the decline, as global output dropped by 1.7 percent for the second straight year.