Tuesday 13 July 2021

The data collected in this year’s edition includes energy data for 2020 – one of the most turbulent years the world has ever seen. This year’s Review captures the dramatic impact the global pandemic had on energy markets and how the ‘year of COVID’ may help shape future global energy trends.

Both primary energy consumption and carbon emissions from energy use fell at their fastest rate seen since the Second World War, while renewable energy continued its trajectory of strong growth, with wind and solar power recording their largest ever annual increase.

Key highlights:

Primary energy consumption fell by 4.5% in 2020 – the largest annual decline since 1945

This fall was driven mainly by oil, which accounted for almost three quarters of the net decline

Natural gas prices declined to multi-year lows; however, the share of gas in primary energy continued to rise, reaching a record high of 24.7%

Wind, solar and hydroelectricity generation all grew despite the fall in overall energy demand. Wind and solar capacity increased by a colossal 238 GW in 2020 – 50% larger than at any time in history

By country, the US, India and Russia saw the largest declines in energy consumption. China saw the largest increase (2.1%), one of only a handful of countries where energy demand grew last year

Carbon emissions from energy use fell by over 6% in 2020, the largest decline since 1945.

Spencer Dale, bp’s chief economist, said: “For the Review – as for so many of us – 2020 will go down as one of the most surprising and challenging years in its life. The global lockdowns had a dramatic impact on energy markets, particularly on oil, whose transport-related demand was crushed.

“Encouragingly, 2020 was also the year the share of renewables in global power generation recorded its fastest ever increase – a growth that came largely at the expense of coal-fired generation. These trends are exactly what the world needs to see as it transitions to net zero – strong growth in renewables crowding out coal.

“For the Review – as for so many of us – 2020 will go down as one of the most surprising and challenging years in its life. The global lockdowns had a dramatic impact on energy markets, particularly on oil, whose transport-related demand was crushed.“

Spencer Dale, bp’s chief economist

“The importance of the past 70 years pales into insignificance as we consider the challenges facing the energy system over the next 10, 20, 30 years. To reach net zero, the level of ambition shown by countries and companies needs to translate into significant, sustained falls in emissions. Everyone, from business to governments to consumers, has a role to play in delivering that.”

bp’s chief executive Bernard Looney added: “This year’s Review provides all of us with the objective and timely data needed to make sense of the most tumultuous events affecting energy markets in any of the past seven decades.

“I sincerely believe that companies like bp with net zero ambitions, coherent plans, and near, medium and long-term aims – companies which are committed to ‘greening’ – have a hugely significant part to play in achieving the Paris goals. Yes, the world needs more low-carbon companies. But maybe more than anything, it also needs existing energy companies to decarbonise and in so doing use their scale and expertise to help bring about the deep and complex rewiring and replumbing of the global energy system that the world wants and needs to see over the next 30 years.

“It will take producers and consumers, as well as companies, governments, and society, all working together to bring about the necessary change.”

Full report here