Group chief executive's introduction
Welcome to the 2009 edition of the BP Statistical Review of World Energy
2008 was a year of truly unprecedented
developments, for the world economy and in energy
markets. Prices for all forms of traded energy rose steeply,
some reaching record highs, and then fell dramatically.
Producers and consumers alike are wondering where
global energy markets are headed, and how to manage
the myriad issues around energy, including price volatility,
security and climate change.
In challenging times such as these, clear and
objective perspectives are needed, and this is what BP’s
Statistical Review has offered for 58 years. I hope you
will find this Review to be a useful source of information
on today’s energy situation – and a source of insight in
thinking about tomorrow’s.
As ever, the world economy is the key driver of energy
consumption. It is easy to forget that until the middle
of 2008, the economy continued to grow. In retrospect,
last year represented the end of one of the strongest
periods of economic growth ever recorded. However,
the economy had already started to slow, most likely
not unrelated to the high price of energy, and the financial
crisis in September then triggered a sharp recession –
with critical implications for global energy consumption.
Energy prices followed these economic headlines,
making for a year of very different parts. Oil prices
increased steadily early in the year, exceeding $140 per
barrel in early July – a record even on an inflation-adjusted
basis. But then prices collapsed, falling by more than 70%
by the end of the year. Market prices for natural gas and
coal followed similar trajectories. Over the whole of 2008,
average prices for all forms of primary energy increased
signifi cantly, with annual oil prices rising for a seventh
consecutive year, a first in the nearly 150-year history of
the oil industry.
Primary energy consumption growth slowed in
2008, as did growth for each of the fossil fuels. All the
net growth in energy consumption came from the rapidly
industrializing non-OECD economies, with China alone
accounting for nearly three-quarters of global growth. For
the first time, non-OECD energy consumption surpassed
OECD consumption. For a sixth consecutive year, coal
was the fastest-growing fuel – with obvious implications
for global CO2 emissions.
The use of renewable fuels again rose rapidly,
often benefitting from government support. Although
renewable energy continues to play only a small role in
the world’s energy mix, the share is rising rapidly in
some countries and there are the beginnings of a material
impact. Data on renewable energy – ethanol production
as well as wind, solar and geothermal power generation
capacity – may be found on this website.
In 2008 the world was no longer supply constrained,
as production growth exceeded that of
consumption for all fossil fuels, particularly later in the
year. Expanded OPEC production drove increases in
world oil supply, even as consumption declined. The
cost-effective development of unconventional gas,
enabled by technological innovation, drove the largest ever
increase in US natural gas supply, and for coal,
strong growth in China was once again a key driver.
Seen in this context, fundamental market forces help
to explain the downward pressure seen on energy
prices later in the year.
Our data confirms that the world has enough
proved reserves of oil, natural gas and coal to meet
the world’s needs for decades to come. The challenges
the world faces in growing supplies to meet future
demand are not below ground, they are above ground.
They are human, not geological.
I would like to thank all those around the world who have been involved in preparing this Review – in particular our government contacts in many countries who helped to compile the data.
I would like to thank all those around the world who have been involved in preparing this Review – in particular our government contacts in many countries who helped to compile the data.
Tony Hayward
Group Chief Executive
June 2009
Group Chief Executive
June 2009
Statistical Review 2009
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