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    China Overtakes USA as Top Energy Consumer

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Summary

China became the world’s largest energy consumer in 2010 overtaking the USA according to the annual BP Statistical Review of World Energy.The 60th...

by: C_Ladd

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Natural Gas & LNG News, Liquefied Natural Gas (LNG)

China Overtakes USA as Top Energy Consumer

China became the world’s largest energy consumer in 2010 overtaking the USA according to the annual BP Statistical Review of World Energy.

The 60th edition of the benchmark publication showed demand for all forms of energy grew strongly in 2010 and increases in fossil fuel consumption suggest that global carbon dioxide (CO2) emissions from energy use rose at their fastest rate since 1969.

The growth in energy consumption was broad-based, with both mature OECD economies and non-OECD countries growing at above-average rates.

The strong rebound of global energy consumption in 2010 followed the recent global recession. Consumption growth reached 5.6%, the highest rate since 1973. It increased strongly for all forms of energy and in all regions. Total consumption of energy in 2010 easily surpassed the pre-recession peak reached in 2008.

“Economic growth was led by the non-OECD economies which had suffered least during the crisis. By year-end, economic activity for the world as a whole exceeded pre-crisis levels driven by the so-called developing world,” said Christof Rühl, BP’s group chief economist.

Globally, energy consumption grew more rapidly than the economy, meaning that the energy intensity of economic activity increased for a second consecutive year. The data imply that global CO2 emissions from fossil fuel consumption will also have grown strongly last year.

“Energy intensity – the amount of energy used for one unit of GDP – grew at the fastest rate since 1970. And so, when all the accounting is done, planet Earth – we all – consumed more energy in 2010 than ever before,” said Rühl.

Turning to natural gas, Rühl said: “Consumption rose 7.4%, the strongest volumetric gain on record. Non-OECD economies expanded their share to over 51%; China solidified its role as Asia’s largest gas market. But OECD markets grew rapidly too (6.4%, +93 billion cubic metres), with consumption attaining all-time highs. Production rose 7.3%, also a record increment. 31% of this global growth originated in the former Soviet Union, followed by the Middle East.

“The shale gas revolution in the US and massive changes in LNG markets are reshaping the world of natural gas,” said Rühl. Over the last five years, global LNG supply grew by a cumulative 58% - three times faster than total gas production. And last year, the supply of LNG expanded by an unprecedented 22.6% (55 bcm).

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