• Saturday, July 20, 2024
businessday logo

BusinessDay

Eight takeaways from 2024 Statistical Review of World Energy

Eight takeaways from 2024 Statistical Review of World Energy

The 2024 Statistical Review of World Energy paints a picture of a global energy sector struggling to keep pace with rising demand while transitioning to cleaner sources.

The report reveals a sobering trend: global energy consumption and emissions reached all-time highs in 2023. Despite significant growth in renewable energy generation, fossil fuels remain the dominant source of global energy use.

Read also: Nigeria, FOSSREA sign pact on hydrogen development to boost access to energy

Record Energy Consumption and Production

Primary energy consumption increased by 2% from 2022, surpassing pre-COVID levels by over 5%. Renewable energy grew at six times the rate of total primary energy, making up 14.6% of total consumption. But fossil fuels still dominate, constituting 81.5% of primary energy consumption despite a slight percentage decline from 2022.

Global energy consumption increased by 12.3 exajoules from 2022. Fossil fuels contributed 7.8 exajoules (63.6% of the increase) while renewables contributed the remaining 4.5 exajoules. Global energy demand continues to grow faster than the ability of renewables to keep pace, much less displace fossil fuels.

Emissions and Carbon

Global emissions rose by 2.1%, crossing 40 billion metric tons of CO? equivalents for the first time. Emissions from flaring and industrial processes saw significant increases, contributing to record levels.

Emissions in the U.S. declined by 2.7% from 2022, and emissions in the European Union fell by 6.6%. But, across Asia Pacific, emissions jumped 4.9%, an increase equivalent to triple the combined decline in the U.S. and EU.

Oil Market

Oil consumption reached a record 100 million barrels per day, driven largely by China’s post-lockdown recovery. The U.S. remained the largest oil producer, with an 8.5% production increase from 2022.

Natural Gas Trends

Natural gas prices dropped significantly in Europe and Asia, with the US seeing a 60% price fall. U.S. production set a new record for the 3rd consecutive year, climbing 4.2% from 2022. The U.S. overtook Qatar as the largest exporter of liquefied natural gas (LNG).

Read also: Renewable energy in Nigeria – Projects, investments, and future Prospects

Coal Market Dynamics

Coal production hit a record high, with the Asia-Pacific region accounting for nearly 80% of output. Global coal consumption also reached new heights, driven by increased demand in China and India.

Electricity and Renewables

Electricity generation grew by 2.5%, with renewables contributing 30% of total generation. Solar and wind capacity saw unprecedented growth, with significant additions from China and Europe.

Key Minerals

Prices for key materials, such as cobalt and lithium, fell sharply, reflecting changes in global demand and supply dynamics.

Key Observations

Although there were record increases in renewable energy generation, fossil fuels still maintained a dominant share of the energy mix, highlighting the slow pace of the energy transition.

Energy consumption and production patterns reflected ongoing geopolitical disruptions and economic recovery post-COVID-19.

Advanced economies showed signs of slowing fossil fuel demand growth, while developing regions, particularly in the Global South, continued to drive energy demand growth.

The report emphasizes the importance of accelerating the transition to cleaner energy sources to meet climate goals and reduce carbon emissions, while also acknowledging the diverse energy challenges and developments across different regions.