Global energy consumption breaks records

In 2023, global energy production and consumption reached record highs, with total primary energy consumption rising by 2% from 2022 and surpassing pre-Covid levels by over 5%. The Statistical Review of World Energy reported that renewable energy sources grew six times faster than primary energy consumption, accounting for 14.6% of the total energy mix. Despite this growth, fossil fuels still dominated, comprising 81.5% of primary energy consumption, though this represented a slight decline from the previous year.

Oil consumption surged, largely due to China’s relaxation of its zero-Covid policies, breaking the 100 million barrels per day mark for the first time. In contrast, gas demand remained flat, and coal consumption also hit a record high. Greenhouse gas emissions from energy use and industrial processes increased by 2.1%, exceeding 40 gigatonnes of carbon dioxide equivalent for the first time. Emissions from flaring and industrial processes saw significant rises.

Brent crude oil prices fell by 18% to an average of $83 (£65.6) per barrel, still 29% above 2019 levels. Global oil production reached a record 96 million barrels per day, with the US leading production growth. North America experienced a modest rise in oil consumption, while Europe saw a slight decline. The Asia Pacific region’s oil demand increased significantly, driven by China’s post-lockdown recovery. China’s refining capacity surpassed that of the US for the first time, though its refined product output remained lower.

Natural gas prices in Europe and Asia fell by 30% from 2022 highs, with US prices dropping 60%. Global gas production remained stable, though Europe and CIS countries saw declines. LNG supply grew by nearly 2%, making the US the largest LNG exporter. Coal prices dropped by 46% on average, with global production reaching its highest level ever. The Asia Pacific region dominated coal output and consumption, led by China and India.

Electricity generation rose by 2.5%, with renewables contributing 30% of the total. The share of nuclear power remained steady, while grid-scale battery storage capacity saw significant growth. Wind and solar energy capacity expanded substantially, with China leading in new installations. Biofuels production increased by over 8%, driven by growth in the US and Brazil.