Saturday 11 June 2016

Record fall in global coal demand driven by low oil prices

Record fall in global coal demand driven by low oil prices

Global coal consumption dropped by a record amount in 2015.

It fell by 1.8%, according to data from BP which said that's the largest percentage collected by the firm.

The decrease was due to a reduction in coal demand in countries such as the US and China and an increasing use of cheaper oil.

Coal accounted for 29.2% of global energy use, the lowest since 2005, it added.

Oil is still the world’s leading fuel, accounting for 32.9% of global economy consumption. It grew by 1.9 million barrels per day (b/d) and production increased by 2.8 million b/d despite low oil prices.

Natural gas use grew by 1.7% worldwide, accounting for 23.8% of primary energy consumption.

Renewable energy sources for power generation reached 2.8% of global consumption and accounted for 6.7% of production.

Wind energy accounted for 52.2% of green generation with Germany recording the largest growth at 53.4%. Solar grew by 32.6%, with China, the US and Japan accounting for the largest increases.

BP added carbon emissions from energy consumption increased by only 0.1% in 2015, the lowest growth rate since 1992.

Bob Dudley CEO at BP said: "As we know, the contrasting trends in the demand and supply of energy had major effects on energy prices, with oil, gas and coal prices all falling sharply last year. These price declines played a key role in prompting adjustments in energy markets: boosting demand in some markets, most notably oil, curtailing supply and shifting the fuel mix in others."

Written by

Bruna Pinhoni

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