Global energy demand fell by biggest margin since 1945: BP

Quantum Commodity Intelligence - Global energy consumption fell 4.5% in 2020, the largest decline since 1945, according to energy major BP as global travel restrictions to curb infections of Covid-19 hit consumption.

Yet while consumption of fossil fuels fell, consumption of renewables rose, the energy company said in its annual statistical review.

"Even after controlling for the collapse in economic activity, the decline in energy demand was close to twice the size of the 'predicted' fall: 4.5% compared with a predicted fall of around 2.5%," Spencer Dale, chief economist at BP said in the report.

Global oil production shrank by 6.6 million b/d, with OPEC accounting for two-thirds of the decline.

In contrast to the slump in oil, natural gas consumption fell by just 81 billion cubic metres (bcm), or only 2.3% year-on-year.

Declines in gas demand were led by Russia, down 33 bcm year-on-year, and the US, down 17 bcm, while China saw demand rise, up 22 and 10 bcm respectively.

The biggest shift in the make-up of the global energy mix last year was the switch away from coal to renewable energy.

Worldwide coal demand fell by 6.2 exajoules (EJ), or 4.2%.

OECD coal consumption fell to its lowest level since 1965.

Meanwhile, renewable energy, which includes biofuels but excludes hydroelectric power, was up 9.7% year-on-year, a slowdown from the 13.4% annual growth over the last ten years.  

Solar electricity rose by a record 1.3 EJ, up 20%, but it was eclipsed by wind power, up 1.5 EJ from 2019.

Solar capacity expanded by 127 GW, while wind capacity grew 111 GW, almost double its previous highest annual increase.

China was the largest individual contributor to renewables growth, up 1 EJ, followed by the US, up 0.4 EJ.

Europe, as a region, contributed 0.7 EJ.

Hydroelectricity grew by 1.0%, again led by China, while nuclear energy fell 4.1%, driven mainly by declines in France, the US and Japan.

Worldwide electricity generation fell by 0.9% in 20202, more than the 0.5% decline in 2009.

As a result global carbon emissions fell 6.3%.