Energy Institute report says 2023 was record year
25 Jun 2024
The 73rd Statistical Review of World Energy released by the Energy Institute in collaboration with KPMG and Kearney paints a picture of a world caught between its insatiable thirst for energy and the looming spectre of climate change. It's a story of records: record consumption, record production, and sadly, record emissions. While the growth in renewable energy offers a glimmer of hope, the stubborn persistence of fossil fuels and the resulting surge in emissions raise serious questions about the pace and direction of our energy transition.
2023 was a record year for all energy consumption. Source: Viktor Kiryanov/Unsplash
The data reveals a stark divide between the Global North and South.
While the North, particularly Europe and North America, shows signs of plateauing demand for fossil fuels, the South, led by China and India, is experiencing a surge in energy consumption, primarily fuelled by coal and oil.
This highlights the immense challenge of balancing economic development with environmental sustainability, especially in regions where millions still lack access to basic electricity.
Greenhouse gas emissions from energy use, industrial processes, flaring, and methane reached an all-time high, exceeding 40 gigatonnes of carbon dioxide equivalent (GtCO2e) for the first time.
The increase in emissions was attributed to a rise in the use of carbon-intensive oil and coal, as well as increased emissions from gas flaring, methane, and industrial processes.
Shift in oil market
The oil market, a key player in the global energy landscape, is undergoing a significant shift.
The US has solidified its position as a leading producer, and non-OPEC+ countries are playing an increasingly important role in meeting global demand.
Non-OPEC+ countries exceeded global incremental demand growth, indicating a shift in production dynamics.
However, the continued reliance on oil, a major contributor to greenhouse gas emissions, is a cause for concern.
Despite an 18% decrease, Brent crude oil prices remained above pre-pandemic levels.
China has also surpassed the US as the largest oil refining market by capacity, but its throughput of refined products still lagged behind.
Gas demand has flattened
Natural gas, often touted as a "bridge fuel" in the transition to cleaner energy, has seen a mixed performance.
While demand has stagnated globally, with increased demand in the Asia Pacific region offset by declines in Europe.
The US has toppled Qatar as world's top exporter of liquefied natural gas (LNG), signalling a potential shift in the global gas market.
Coal, the most carbon-intensive of fossil fuels, continues to be a major player, particularly in the Asia Pacific region.
The record-breaking production and consumption of coal in 2023, driven largely by China and India, is a reminder of the challenges in phasing out this polluting fuel.
Despite its record year, coal prices fell from their 2022 highs and continue to drop.
China rules the renewables market
The growth in renewable energy, while encouraging, is not happening fast enough to offset the negative impacts of fossil fuels.
Record levels of greenhouse gas emissions in 2023 are a dire warning. We are on a trajectory that could lead to catastrophic climate change if we don't act decisively.
Global electricity generation reached a new record, with renewables accounting for 30% of total power generation – driven largely by the boom in the Chinese market.
Grid-scale battery electricity storage capacity reached 56GW, with China again leading the way.
This data is a wake-up call. It's a call for governments, businesses, and individuals to rethink our energy choices, invest in cleaner technologies, and prioritise sustainability.
The transition to a cleaner energy future is not just an option; it's an imperative. The question is, are we moving fast enough?
The answer, based on this report, is a resounding no. We need to accelerate our efforts, or we risk facing the consequences of our inaction.
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