The BP Statistical Review of World Energy 2017 reveals that the oil markets have found equilibrium again following the strong oil demand and weakening supply growth, citing the ongoing pressures of stocks on oil prices.
According to the report, while global energy markets continue to undergo long-term changes, they are adapting to shorter-term price challenges.
The data in the 2017 BP Energy Statistics Report, the 66th issue of which is out this year, clearly shows the long-term changes that are still occurring in the markets, as global energy demand has started growing more slowly and the demand is strongly shifting to Asia's faster-growing emerging economies. In addition, it underlies the shift toward lower-carbon fuels because of strong growth in renewable energy and ongoing decline in coal use.
According to the report, while the energy markets are effectively adapting to shorter-term challenges, the oil market in particular has begun to adapt to the extreme supply, which has domina
ted the market in recent years, in 2016.
Global energy demand grew
by only 1 percent in 2016
According to the report, the decline in global energy demand, which grew at a rate close to half of the average of the last decade with only 1 percent growth in 2016, has continued for three years in a row. Once again, almost all of this growth came from fast-growing emerging economies, while half of it came from China and India.
While last year's decline in prices increased oil demand by 1.6 percent, the production growth was limited to only 0.5 percent. As a result, although the oil market rebounded toward the middle of the year in general, prices remained under pressure due to the high inventories that had formed. Natural gas production was also affected negatively by low prices, rising only by 0.3 percent. The U.S. gas production declined in 2016, experiencing the first fall since the advance of the shale gas revolution, which occurred in the mid-2000s.
Fastest growth in
renewables with 12 percent
Renewable energy (including biofuels) was again the fastest growing energy source with a growth rate of 12 percent, accounting for almost a third of the increase in primary energy, despite having a share of only 4 percent. As opposed to growing clean energy, global coal - most carbon intensive fossil fuel- consumption fell by 53 million tonnes of oil equivalent or 1.7 percent, the second successive annual decline.
The weak growth in energy demand and the change in fuel mix caused only a 0.1 percent increase in the global carbon emission during 2016, which is the third consecutive year with stable or decreasing emissions.