Group chief executive's introduction
Energy in 2011 – disruptions and continuity
Welcome to the 61st annual edition of the BP Statistical Review of World Energy.
As is our longstanding custom, each June we take stock, and a step back from
day-to-day activities to publish the annual data we have collected on the world’s
energy markets, to assess what has happened this last year and how last year’s
experience relates to longer-term trends. In a fast-changing world, I believe it is
important to understand both the forces behind today’s headlines as well as the
underlying trends that are shaping the new energy landscape that our children
and grandchildren will inherit. I find it essential and insightful to focus on the
objective, rigorous data contained in this review.
2011 was an unusually eventful year in global energy. The tumultuous
events of the ’Arab Spring‘ shook energy markets and underscored the
importance of maintaining spare capacity and strategic stockpiles for dealing
with supply disruptions. The earthquake and tsunami in Japan was a humanitarian
disaster; and one with immediate implications – in Japan and around the world –
for nuclear power and other fuels. Oil prices hit an all-time record high. Yet the
revolution in shale gas production drove US natural gas prices lower, reaching
record discounts to oil.
With all of these issues in play, global energy consumption grew by 2.5%
in 2011, broadly in line with the historical average but well below the 5.1% seen
in 2010. Once again emerging economies accounted for all of the net growth in
energy consumption, with demand in the OECD falling for a third time in the last
four years.
On the production side, the loss of oil supplies in Libya and elsewhere
was eventually more than offset by large increases among Middle Eastern
OPEC members, leading to record oil production in Saudi Arabia, the UAE, and
Qatar. Meanwhile, the US recorded the largest non-OPEC production increase
for a third consecutive year. In my mind, it is no coincidence that the innovations
driving the renaissance in US oil and gas production are taking place in one of
the most open and competitive upstream segments in the world. The example
of North America highlights how competition and a level playing fi eld foster
innovation, ultimately leading to the production of previously inaccessible, new,
’unconventional‘ resources.
Crises and disruptions to one side, this year’s data also confirm how a
number of longer-term trends remained in place. The center of gravity for world
energy consumption continues to shift from the OECD to emerging economies,
especially in Asia. The world is not structurally short of hydrocarbon resources –
as our data on proved reserves confirms year after year – but long lead times and
various forms of access constraints in some regions continue to create challenges
for the ability of supply to meet demand growth at reasonable prices.
Fossil fuels still dominate energy consumption, with a market share of 87%.
Renewable energy continues to gain but today accounts for only 2% of energy
consumption globally. Meanwhile, the fossil fuel mix is changing as well. Oil,
still the leading fuel, has lost market share for 12 consecutive years. Coal was
once again the fastest growing fossil fuel, with predictable consequences for
carbon emissions.
At this level, change comes only slowly to the global energy system. It is
important for all of us – producers and consumers, along with our governments
and everyone interested in energy – to address today’s challenges without losing
sight of slower-moving structural changes, including those we are seeking to
bring about. It is a singular contribution of this review to keep us firmly rooted in
objective data: a rigorous understanding of where we are – and where we have
been – is necessary for us to build a safe and sustainable energy future together.
I would like to thank BP’s economics team and all those around the world who have helped prepare this review – in particular those in governments in many countries who contribute their official data.
I would like to thank BP’s economics team and all those around the world who have helped prepare this review – in particular those in governments in many countries who contribute their official data.
Bob Dudley
Group Chief Executive
June 2012
Group Chief Executive
June 2012
Statistical Review 2012
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