by Rebecca Walker — July 10, 2009—In a climate of unprecedented turbulence, global energy markets followed the same extreme pattern as the world economy in general during 2008. Prices first rose to record highs as economic growth boomed in the first half of the year. Then they collapsed as the global economy abruptly reversed and plunged into recession in the wake of the financial crisis.
But the year was also remarkable for another reason. For the first time ever, according to the 2009 BP Statistical Review of World Energy, the developing world led by China leapfrogged OECD (Organization for Economic Co-operation and Development) nations in the consumption of primary energy.
“The centre of gravity of the global energy markets has tilted sharply and irreversibly towards the emerging nations of the world, especially China, said BP chief executive Tony Hayward.
“This is not a temporary phenomenon but one that I believe will only increase still more over time. It will continue to affect prices and bring with it new challenges over economic growth, energy security and climate change. “This shift will bring volatility in the short term,” Hayward warned. “But I have no doubt that the diversity and flexibility of modern energy markets will continue to ensure that energy supplies continue to reach consumers efficiently and without interruption.”
The Review shows that overall primary energy consumption nudged up just 1.4 per cent, the smallest rise since 2001. China alone accounted for almost three quarters of the rise, with most of the balance coming from the wider Asia-Pacific region.
Over the year, global oil consumption fell by 0.6 percent or 420,000 barrels a day; the first decline since 1993 and the largest drop for 27 years. Despite overall lower demand, average oil production rose 0.4 per cent, or 380,000 barrels a day, driven largely by OPEC production increases. Despite cuts late in the year, average OPEC oil output actually rose by almost 1 million barrels a day, or 2.7 percent. This all came from the Middle East with daily production from Saudi Arabia up 400,000 barrels and from Iraq up 280,000 barrels.
For more information, see the BP Web site.
