Released June 24, 2024 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Global oil demand averaged slightly over 100 million barrels per day (BBL/d) in 2023, the highest level ever, the Energy Institute (London, England) reported last week in its Statistical Review of World Energy 2024. But there were no celebrations of this milestone at the June 20 launch event for the report. Instead, speakers at the London press conference spent more time fretting about rising carbon dioxide (CO2) emissions, climate change and energy inequality between advanced and advancing economies.
The Energy Institute report, prepared in collaboration with KPMG (Amstelveen, Netherlands) and Kearney (Chicago, Illinois), said global demand for oil averaged 100.2 million BBL/d in 2023, a 2.6% gain over 2022 levels. Demand growth was highest in China (up 10.7% to 16.6 million BBL/d), India (increased 4.6% to 5.4 million BBL/d) and Saudi Arabia (up 5.1% to slightly over 4 million BBL/d).
In 2023, oil was the third-largest source of primary energy for the world, amounting to about 144 exajoules (EJ), trailing coal (195 EJ) and natural gas (164 EJ), the Statistical Review report said. For more on global coal use, see June 21, 2024, article - Global Coal Use Hit New Record in 2023, Contributing to Record CO2 Emissions.
Click on the images at right to see the world's absolute consumption of primary energy in 2023 and oil's share of that demand.
Global demand for oil has grown about 1.1% annually over the 11-year period 2013-2023, it noted.
The Energy Institute's report noted that the U.S. remained the world's largest consumer of oil in 2023, using an average of slightly under 19 million BBL/d, a gain of 0.6% over 2022 demand levels. The U.S. accounted for approximately 18.9% of global oil consumption last year, it added.
On the production side, global production averaged about 96.3 million BBL/d last year, a 2% gain over 2022 production levels. The U.S. remained the global leader in crude oil and condensate production in 2023, averaging about 12.9 million BBL/d, an increase of approximately 8.5% over 2022 levels. The U.S. was followed the Russian Federation (about 10.6 million BBL/d), Saudi Arabia (9.6 million BBL/d), Iraq (4.3 million BBL/d), China (4.2 million BBL/d) and Iran (3.9 million BBL/d).
The world's oil refining capacity grew about 2.1% last year, to an estimated 103.5 million BBL/d, the Statistical Review said. China narrowly beat the U.S. as the country with the biggest refining capacity: China's refining capacity grew 7.1% last year, to 18.5 million BBL/d while U.S. refining capacity grew 2% to 18.4 million BBL/d. After the U.S., the countries with the greatest refining capacity were the Russian Federation, with 6.8 million BBL/d, and India, at 5.1 million BBL/d.
Speakers at the report's June 20 launch event noted rising global temperatures and rising hydrocarbon use but did not advocate for any particular set of policies to lower hydrocarbon use as a way to slow the rise in CO2 emissions. Instead, they saw the report as providing reliable data that countries and companies could use to adjust their policies and actions to slow climate change.
Simon Virley, vice chair and head of the energy and natural resources practice at KPMG in the U.K., noted that price and availability were the main reasons why hydrocarbon use continued to increase around the world, despite rising concerns about the effects of global warming. He added that as nations try to navigate the "energy trilemma"--energy security, energy affordability and sustainability--"energy security and energy affordability tend to squeeze out sustainability."
He added, "In a year where we have seen the contribution of renewables reaching a new record high, ever-increasing global energy demand means the share coming from fossil fuels has remained virtually unchanged at just over 80% for yet another year. With CO2 emissions also reaching record levels, it's time to redouble our efforts on reducing carbon emissions and providing finance and capacity to build more low-carbon energy sources in the global south where demand is growing at a rapid pace."
Another panelist, Romain Debarre, partner and managing director of Kearney's Energy Transition Institute, said the United Nation's global climate summit last year, known as COP28, and rhetoric from world leaders on the energy transition, "demonstrates the ambition to reduce the world's fossil fuel dependency. However, this ambition is futile unless it is matched with drastic and coordinated actions resulting in real and immediate impact on climate change mitigation."
"With global temperature increases closing in on 1.5°C," he continued, "we hope that this report will help governments, world leaders and analysts move forward, clear-eyed about the challenge that lies ahead, and ready to take a lead in promoting and enabling the use of clean energy across the world."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The Energy Institute report, prepared in collaboration with KPMG (Amstelveen, Netherlands) and Kearney (Chicago, Illinois), said global demand for oil averaged 100.2 million BBL/d in 2023, a 2.6% gain over 2022 levels. Demand growth was highest in China (up 10.7% to 16.6 million BBL/d), India (increased 4.6% to 5.4 million BBL/d) and Saudi Arabia (up 5.1% to slightly over 4 million BBL/d).
In 2023, oil was the third-largest source of primary energy for the world, amounting to about 144 exajoules (EJ), trailing coal (195 EJ) and natural gas (164 EJ), the Statistical Review report said. For more on global coal use, see June 21, 2024, article - Global Coal Use Hit New Record in 2023, Contributing to Record CO2 Emissions.
Global demand for oil has grown about 1.1% annually over the 11-year period 2013-2023, it noted.
The Energy Institute's report noted that the U.S. remained the world's largest consumer of oil in 2023, using an average of slightly under 19 million BBL/d, a gain of 0.6% over 2022 demand levels. The U.S. accounted for approximately 18.9% of global oil consumption last year, it added.
On the production side, global production averaged about 96.3 million BBL/d last year, a 2% gain over 2022 production levels. The U.S. remained the global leader in crude oil and condensate production in 2023, averaging about 12.9 million BBL/d, an increase of approximately 8.5% over 2022 levels. The U.S. was followed the Russian Federation (about 10.6 million BBL/d), Saudi Arabia (9.6 million BBL/d), Iraq (4.3 million BBL/d), China (4.2 million BBL/d) and Iran (3.9 million BBL/d).
The world's oil refining capacity grew about 2.1% last year, to an estimated 103.5 million BBL/d, the Statistical Review said. China narrowly beat the U.S. as the country with the biggest refining capacity: China's refining capacity grew 7.1% last year, to 18.5 million BBL/d while U.S. refining capacity grew 2% to 18.4 million BBL/d. After the U.S., the countries with the greatest refining capacity were the Russian Federation, with 6.8 million BBL/d, and India, at 5.1 million BBL/d.
Speakers at the report's June 20 launch event noted rising global temperatures and rising hydrocarbon use but did not advocate for any particular set of policies to lower hydrocarbon use as a way to slow the rise in CO2 emissions. Instead, they saw the report as providing reliable data that countries and companies could use to adjust their policies and actions to slow climate change.
Simon Virley, vice chair and head of the energy and natural resources practice at KPMG in the U.K., noted that price and availability were the main reasons why hydrocarbon use continued to increase around the world, despite rising concerns about the effects of global warming. He added that as nations try to navigate the "energy trilemma"--energy security, energy affordability and sustainability--"energy security and energy affordability tend to squeeze out sustainability."
He added, "In a year where we have seen the contribution of renewables reaching a new record high, ever-increasing global energy demand means the share coming from fossil fuels has remained virtually unchanged at just over 80% for yet another year. With CO2 emissions also reaching record levels, it's time to redouble our efforts on reducing carbon emissions and providing finance and capacity to build more low-carbon energy sources in the global south where demand is growing at a rapid pace."
Another panelist, Romain Debarre, partner and managing director of Kearney's Energy Transition Institute, said the United Nation's global climate summit last year, known as COP28, and rhetoric from world leaders on the energy transition, "demonstrates the ambition to reduce the world's fossil fuel dependency. However, this ambition is futile unless it is matched with drastic and coordinated actions resulting in real and immediate impact on climate change mitigation."
"With global temperature increases closing in on 1.5°C," he continued, "we hope that this report will help governments, world leaders and analysts move forward, clear-eyed about the challenge that lies ahead, and ready to take a lead in promoting and enabling the use of clean energy across the world."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
