RESAB Engineering

Statistical Review of World Energy 2023

In this comprehensive analysis, we delve into the Statistical Review of World Energy for the year 2023.
In this comprehensive analysis, we delve into the Statistical Review of World Energy for the year 2023. The year 2022 marked a significant point in the global energy landscape as it continued to rebound from the impacts of the COVID-19 pandemic. However, various challenges, including supply chain issues and geopolitical conflicts, continued to exert their influence on the energy sector worldwide.

Energy Developments in 2022

  • Total primary energy consumption witnessed a 1 percent increase, surpassing levels seen in 2019, before the pandemic hit.
  • Renewables (excluding hydroelectricity) accounted for 7.5 percent of primary energy consumption, reflecting a nearly 1 percent increase compared to the previous year.
  • Fossil fuel consumption remained consistent, constituting 82 percent of primary energy consumption.

Carbon Emissions

  • Carbon dioxide emissions, encompassing energy use, industrial processes, flaring, and methane (in carbon dioxide equivalent terms), reached a new high in 2022, increasing by 0.8 percent to 39.3 GtCO2e. Emissions from energy use alone rose by 0.9 percent to 34.4 GtCO2e.
  • Notably, emissions from flaring decreased by 3.8 percent, while emissions from methane and industrial processes decreased slightly by 0.2 percent.

Insights on Oil

  • Brent crude oil prices averaged $101/bbl in 2022, marking their highest levels since 2013.
  • Oil consumption continued to rise, increasing by 2.9 million barrels per day (b/d) to 97.3 million b/d, although it remained 0.7 percent below 2019 levels.
  • Growth in oil consumption was primarily driven by jet/kerosene (0.9 million b/d) and diesel/gasoil (0.7 million b/d).
  • Global oil production increased by 3.8 million b/d, with OPEC accounting for over 60 percent of this increase. Saudi Arabia and the US experienced the largest production boosts, while Nigeria and Libya reported declines.
  • Refining capacity slightly increased by around 534,000 b/d, primarily due to capacity expansions in non-OECD countries.

Natural Gas Dynamics

  • Natural gas prices surged to record levels in Europe and Asia during 2022, with Europe experiencing nearly threefold price increases and Asian LNG spot market prices doubling. US Henry Hub prices also rose significantly.
  • Global natural gas demand decreased by 3 percent, falling just below the 4 Tcm mark achieved in 2021. Its share in primary energy slightly decreased to 24 percent in 2022.
  • Global gas production remained relatively steady compared to the previous year.
  • LNG supply increased by 5 percent to reach 542 Bcm in 2022, primarily driven by North America and APAC.
  • Japan emerged as the world’s largest LNG importer, accounting for nearly 60 percent of global LNG demand growth in 2022.
  • Natural gas pipeline net trade decreased globally by about 15 percent, with European pipeline imports dropping significantly, mainly due to reduced supplies from Russia.

Insights on Coal

  • Coal prices soared in 2022, reaching record levels in Europe and Japan.
  • Coal consumption continued to rise, growing by 0.6 percent in 2021, reaching the highest level since 2014.
  • The growth in demand was mainly attributed to China and India.
  • Coal consumption declined in North America and Europe.
  • Global coal production increased by over 7 percent, with China, India, and Indonesia accounting for the majority of the increase.

Renewable, Hydro, and Nuclear Energy

  • Renewable power (excluding hydro) increased by 14 percent in 2022, reaching 40.9 EJ.
  • Solar and wind capacity experienced rapid growth, with solar accounting for the majority of capacity additions.
  • Hydroelectricity generation increased slightly, while nuclear energy output decreased.

The Electricity Landscape

  • Global electricity generation grew by 2.3 percent in 2022.
  • Wind and solar collectively accounted for 12 percent of power generation, surpassing nuclear energy.
  • Coal remained the dominant fuel for power generation, with a share of around 35.4 percent.
  • Natural gas-fired power generation remained stable at approximately 23 percent.
  • Renewables (excluding hydro) contributed significantly to net electricity demand growth.

Key Minerals

  • Lithium carbonate and cobalt prices experienced substantial increases.
  • Lithium and cobalt production also rose significantly.

Final Thoughts and Reflections

The analysis of the Statistical Review of World Energy for 2023 underscores the pressing need for a sustainable and secure energy future. In a world marked by both environmental challenges and energy market fluctuations, the insights provided by this review take on significant importance.

The year 2022 showcased the global energy landscape in a state of transition. While there was a noticeable increase in renewable energy adoption, fossil fuels, such as oil and coal, remained dominant players. The surge in carbon emissions serves as a stark reminder of the urgency to address climate change and reduce greenhouse gas emissions.

The high oil prices and increased consumption highlight the importance of diversifying energy sources and investing in more resilient and cleaner technologies. As nations grapple with fluctuating energy markets and geopolitical conflicts, it becomes clear that energy security is not only about ensuring a stable supply but also about reducing dependence on finite and environmentally damaging resources.

The growth of renewable energy, particularly in solar and wind, offers hope for a sustainable future. However, challenges remain in scaling up these technologies to meet the world’s energy needs. The key minerals’ price increases and production growth emphasize the critical role these resources play in the clean energy transition and the need for responsible sourcing and recycling.

In essence, this analysis serves as a reminder that the energy choices made today will have a profound impact on the future. It underscores the importance of policies and initiatives that promote renewable energy, energy efficiency, and emissions reductions. It also calls for international cooperation to address energy security and environmental concerns on a global scale.

In the face of the challenges and opportunities presented by the global energy landscape, the key takeaway is clear: the world must work towards a more sustainable and secure energy future to ensure the well-being of both current and future generations.

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