Despite the disaster in the Gulf of Mexico BP still managed to release their annual review of the state of world energy on time today. Global energy consumption fell -1.1% in 2009 as a result of the recession and the first decline since 1982. Consumption in OECD countries fell by -5% and the largest decline on record.
Brent crude prices averaged $61.67 for the year for a decline of -37% over 2008 and the largest percentage decline since 1986. Prices began the year under $40 but rallied to more than $78 in November.
Global consumption declined by -1.2 million barrels per day or -1.7%. OECD consumption fell by -4.8% or two million bpd and the fourth consecutive annual decline.
Overall global production fell by -2.6% or two million bpd after production cuts by OPEC nations removed 2.5 mbpd. OPEC oil production fell -7.3% and the largest decline since 1983. Oil production outside OPEC rose by 450,000 bpd. The U.S. production grew by 460,000 bpd, the largest increase in the world last year and the largest increase in decades. This was due to several major oil platforms in the gulf finally coming online after years of delays and additional production from the Bakken.
Refiners around the world shuttered capacity in non-profitable areas but still managed to add two million bpd (+2.2%) in capacity in new plants and additions to existing plants. The Asia Pacific region accounted for 80% of the additional capacity.
Global coal consumption was flat in 2009 and the weakest year since 1999. The OECD consumption declined -10.4% and the FSU -13.3%. Those were the steepest declines on record and due to the recession and the cheap natural gas prices. Elsewhere around the globe coal usage rose +7.4% with China accounting for 95% of the increase.
Globally natural gas consumption fell -2.1% and the largest decline on record due mainly to the lingering recession. Russia's gas consumption declined the most at -6.1% with OECD consumption falling -3.1% and the largest decline since 1982. Global production declined for the fist time on record with Russia falling -12.1% and Turkmenistan -44.8%. The availability in Europe of reasonably priced LNG helped to reduce demand for Russian gas.
Crude oil production increased in 19 countries and declined in 39 countries.
BP refrained from repeating the statement that there would be enough crude oil to last another 40 years. It appears they are not trying to make a statement on future consumption or production in this report. Maybe they have attracted so much lightning in recent weeks they are trying to remain neutral in everything they do.
Download the full report here.
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