Released July 12, 2021 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Global use of natural gas fell about 2.3% last year, far less than the drops in overall energy demand or demand for crude oil, according to BP's Statistical Review of World Energy. But proved gas reserves continued growing, and global demand for liquefied natural gas (LNG) has grown three times faster than overall demand for gas over the last decade, said the report, released July 8.
The report also detailed last year's decline in global oil use, which helped lower emissions of carbon dioxide (CO2). For more on that, see the July 9, 20201, article - BP: Global Drop in Oil Use in 2020 Drove Down Carbon Emissions.
Worldwide natural gas use totaled approximately 3,822.8 billion cubic meters (Bcm), or about 135 trillion cubic feet (Tcf), last year, BP said in its Statistical Review. China bucked the global downward trend by increasing its use of gas 6.9% last year, to about 330.6 Bcm, or roughly 11.7 Tcf. Though worldwide demand for gas fell 2.3% last year compared to 2019, demand has grown about 2.9% per year for the decade prior to the pandemic, the report said.
U.S. gas demand mirrored the global drop of 2.3% last year. Domestic production declined about 1.9% to about 914.5 Bcm, or 32.3 Tcf, the report said.
Click on the image at right to see worldwide demand and production of natural gas, by region, since 1995.
While most energy-related metrics declined last year, proved gas reserves rose 4.5% to about 188.1 trillion cubic meters (Tcm) in 2020, or approximately 6,642 Tcf. Proved reserves stood at 179.9 Tcm, or 6,353.1 Tcf in 2019, the Statistical Review said. The Middle East continued to hold the lion's share of proved reserves, but proved reserves held by the Russia-led Commonwealth of Independent States (CIS) rose last year, as did the relative shares held by Asia Pacific nations and North America. Europe's share of the world's proved gas reserves continued to decline in 2020.
Click on the image at right to see how the world's proved natural gas reserves have grown and shifted since 2000.
In recent years, strong demand growth for LNG has driven up overall gas use around the world. Global LNG demand has increased 61% between 2010 and 2020, from 302.4 Bcm to 487.9 Bcm, according to the Statistical Review. Over that same time, global demand for gas increased approximately 21%, to 3,822.8 Bcm in 2020 from 3,160.5 Bcm in 2010. Given that, although the BP report does not project future demand trends, it may not be too much to say future demand for LNG will be expected to heavily influence worldwide gas demand.
Since 2010, three of the four largest LNG exporters--Australia, the U.S. and Russia-- have sharply increased their export volumes. The fourth, Qatar, increased exports about 36% over the decade, far less than the other nations on a percentage basis. Qatar is engaged in a massive increase of its LNG export capabilities. For more on that, see February 22, 2021, article - Decisions by Qatar, U.S. Dim Prospects for Jordan Cove LNG Export Terminal. The U.S. also is racing to bring more LNG export capacity online.
Click on the image at right to see export trends over the past 10 years.
The four largest importers of LNG all are located in Asia: Japan, China, South Korea and India. In 2020, China increased its imports of LNG by an estimated 250% compared to 2015 import levels, the BP report said. Over the last decade, China has increased its LNG imports six-fold.
Click on the image at right to see import trends for the four largest LNG importers, since 2010.
Increased worldwide use of natural gas over the last decade has helped limit the increase in global emissions of CO2, to 32,284 million tonnes in 2020 from 31,291 million tonnes in 2010, according to data in the Statistical Review. When combusted, gas emits about half the CO2 of coal, and advanced economies have retired numerous coal-fired power plants over the last decade. But over that same timeframe, reductions in CO2 emissions from the Organization for Economic Cooperation and Development (OECD) (Paris, France) and the European Union have been offset by an increase in emissions from countries that are not part of the OECD or European Union.
All of that poses difficult equity issues for BP and others in advanced economies: How can we tell developing nations not to follow in our footsteps and tap the cheapest energy resources, which often is coal?
In his introduction to the Statistical Review, BP Chief Executive Officer Bernard Looney commented, "Since the Paris Conference of Parties (COP21) in 2015 there has been a huge increase in countries' ambitions to decarbonize. Around 70% of the world's carbon emissions are now covered by net zero targets and pledges. But this rising ambition has yet to be translated into a decisive reduction in emissions."
Although 2020 saw an unprecedented 6.3% year-over-year reduction in CO2 emissions from energy use, Looney remarked, "the rate of decline in carbon emissions last year is similar to what the world needs to average each year for the next 30 years to be on track to meet the aims of the Paris Agreement."
National leaders will gather later this year in Glasgow, Scotland, to try to forge an international plan to lower CO2 emissions to keep global temperature gain to under 2 degrees Celsius and achieve a net-zero carbon emissions world by 2050.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The report also detailed last year's decline in global oil use, which helped lower emissions of carbon dioxide (CO2). For more on that, see the July 9, 20201, article - BP: Global Drop in Oil Use in 2020 Drove Down Carbon Emissions.
Worldwide natural gas use totaled approximately 3,822.8 billion cubic meters (Bcm), or about 135 trillion cubic feet (Tcf), last year, BP said in its Statistical Review. China bucked the global downward trend by increasing its use of gas 6.9% last year, to about 330.6 Bcm, or roughly 11.7 Tcf. Though worldwide demand for gas fell 2.3% last year compared to 2019, demand has grown about 2.9% per year for the decade prior to the pandemic, the report said.
U.S. gas demand mirrored the global drop of 2.3% last year. Domestic production declined about 1.9% to about 914.5 Bcm, or 32.3 Tcf, the report said.
Click on the image at right to see worldwide demand and production of natural gas, by region, since 1995. While most energy-related metrics declined last year, proved gas reserves rose 4.5% to about 188.1 trillion cubic meters (Tcm) in 2020, or approximately 6,642 Tcf. Proved reserves stood at 179.9 Tcm, or 6,353.1 Tcf in 2019, the Statistical Review said. The Middle East continued to hold the lion's share of proved reserves, but proved reserves held by the Russia-led Commonwealth of Independent States (CIS) rose last year, as did the relative shares held by Asia Pacific nations and North America. Europe's share of the world's proved gas reserves continued to decline in 2020.
Click on the image at right to see how the world's proved natural gas reserves have grown and shifted since 2000.In recent years, strong demand growth for LNG has driven up overall gas use around the world. Global LNG demand has increased 61% between 2010 and 2020, from 302.4 Bcm to 487.9 Bcm, according to the Statistical Review. Over that same time, global demand for gas increased approximately 21%, to 3,822.8 Bcm in 2020 from 3,160.5 Bcm in 2010. Given that, although the BP report does not project future demand trends, it may not be too much to say future demand for LNG will be expected to heavily influence worldwide gas demand.
Since 2010, three of the four largest LNG exporters--Australia, the U.S. and Russia-- have sharply increased their export volumes. The fourth, Qatar, increased exports about 36% over the decade, far less than the other nations on a percentage basis. Qatar is engaged in a massive increase of its LNG export capabilities. For more on that, see February 22, 2021, article - Decisions by Qatar, U.S. Dim Prospects for Jordan Cove LNG Export Terminal. The U.S. also is racing to bring more LNG export capacity online.
Click on the image at right to see export trends over the past 10 years.The four largest importers of LNG all are located in Asia: Japan, China, South Korea and India. In 2020, China increased its imports of LNG by an estimated 250% compared to 2015 import levels, the BP report said. Over the last decade, China has increased its LNG imports six-fold.
Click on the image at right to see import trends for the four largest LNG importers, since 2010.Increased worldwide use of natural gas over the last decade has helped limit the increase in global emissions of CO2, to 32,284 million tonnes in 2020 from 31,291 million tonnes in 2010, according to data in the Statistical Review. When combusted, gas emits about half the CO2 of coal, and advanced economies have retired numerous coal-fired power plants over the last decade. But over that same timeframe, reductions in CO2 emissions from the Organization for Economic Cooperation and Development (OECD) (Paris, France) and the European Union have been offset by an increase in emissions from countries that are not part of the OECD or European Union.
All of that poses difficult equity issues for BP and others in advanced economies: How can we tell developing nations not to follow in our footsteps and tap the cheapest energy resources, which often is coal?
In his introduction to the Statistical Review, BP Chief Executive Officer Bernard Looney commented, "Since the Paris Conference of Parties (COP21) in 2015 there has been a huge increase in countries' ambitions to decarbonize. Around 70% of the world's carbon emissions are now covered by net zero targets and pledges. But this rising ambition has yet to be translated into a decisive reduction in emissions."
Although 2020 saw an unprecedented 6.3% year-over-year reduction in CO2 emissions from energy use, Looney remarked, "the rate of decline in carbon emissions last year is similar to what the world needs to average each year for the next 30 years to be on track to meet the aims of the Paris Agreement."
National leaders will gather later this year in Glasgow, Scotland, to try to forge an international plan to lower CO2 emissions to keep global temperature gain to under 2 degrees Celsius and achieve a net-zero carbon emissions world by 2050.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
