The recently published Statistical Review of World Energy report, jointly authored by the Energy Institute, KPMG, and Kearny, highlights the energy landscape in 2022. Despite record growth in renewable energy capacity, fossil fuels maintained their dominant position, accounting for 82% of the global energy supply. This article provides an overview of key findings from the report, emphasizing energy consumption, the state of oil, natural gas, coal, renewables, and greenhouse gas emissions.

Global Energy Consumption:

  • Primary energy demand experienced a 1% growth rate, slower than the previous year’s 5.5%.
  • Energy consumption increased worldwide except in Europe, including Eastern Europe.
  • Renewables, excluding hydropower, contributed 7.5% to global energy consumption, marking a 1% increase from the previous year.
  • Fossil fuels retained an 82% share of global energy consumption.

Electricity Generation:

  • Electricity generation rose by 2.3%, with wind and solar power achieving a record share of 12%.
  • Nuclear power declined by 4.4%, while wind and solar collectively met 84% of net electricity demand growth.
  • Coal remained the dominant source of power generation, accounting for approximately 35.4% of the share.

Oil:

  • Oil consumption expanded by 2.9 million barrels per day (bpd) to reach 97.3 million bpd, albeit at a slower growth rate compared to the previous year.
  • Oil consumption was 0.7% lower than pre-Covid levels in 2019.
  • Revived demand for jet fuel and diesel-related products primarily drove oil demand growth.
  • Oil production increased by 3.8 million bpd, primarily led by OPEC members and the United States, while Nigeria experienced a significant decline.
  • Non-OECD countries saw a rise in oil refining capacity by 534,000 bpd.

Natural Gas:

  • Global gas demand decreased by 3% but 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), with notable growth from North America and the Asia-Pacific region.
  • Europe experienced substantial growth in LNG imports, increasing by 57%, while the Asia-Pacific region and South and Central America reduced their purchases.
  • Japan overtook China as the world’s largest LNG importer.

Coal:

  • Coal prices reached record levels, surging by 145% in Europe and 45% in Japan.
  • Coal consumption rose by 0.6%, reaching its highest level since 2014, driven by demand from China and India while North America and Europe experienced declines.
  • Global coal output increased by 7%, primarily led by China, India, and Indonesia.

Renewables:

  • Renewable energy growth slightly slowed to 14%, but solar and wind capacities experienced a record increase of 266 gigawatts, with solar leading the expansion.
  • China added the most solar and wind power installations.

Emissions:

  • Global energy-related greenhouse gas emissions increased by 0.8%, setting a new record of 39.3 billion tonnes of CO2 equivalent.

Minerals:

  • Lithium carbonate prices surged by 335%, and cobalt prices increased by 24%.
  • Production of lithium and cobalt rose by 21%.

Conclusion:

Despite significant growth in renewable energy capacity, fossil fuels remained the dominant energy source, accounting for 82% of global energy supply in 2022. This outcome, coupled with an increase in energy-related greenhouse gas emissions, signifies a deviation from the goals outlined in the Paris Agreement. To address climate change effectively, a substantial reduction in greenhouse gas emissions is necessary, requiring global efforts to transition away from fossil fuels towards cleaner, renewable energy sources.