Global Energy Consumption In 2019, India 2nd Growth Driver: BP Statistical Review

India was second biggest growth driver of primary energy consumption in the world, behind China, in 2019 even though it witnessed fall in demand in oil and coal, according to BP Statistical Review released on Wednesday.

Global primary energy consumption growth slowed to 1.3 percent last year, less than half the rate of growth in 2018 (2.8 percent), BP said.

The increase in energy consumption was driven by renewables and natural gas, which together contributed three quarters of the expansion. All fuels grew at a slower rate than their 10-year averages, apart from nuclear.

“By country, China was by far the biggest driver of energy, accounting for more than three quarters of net global growth. India and Indonesia were the next largest contributors to growth, while the US and Germany posted the largest declines,” it said. But the growth in 2019 was slower than 2018.

World primary energy consumption rose to 583.90 Exajoules (EJ). India’s consumption rose 2.3 percent to 34.06 EJ. The growth was lower than 5.2 percent in 2018.

In absolute terms, India’s energy consumption was only behind that of China (141.70 EJ) and US (94.65 EJ).

“Growth in energy markets slowed in 2019 in line with weaker economic growth and a partial unwinding of some of the one-off factors that boosted energy demand in 2018. This slowdown was particularly evident in the US, Russia and India, each of which exhibited unusually strong growth in 2018,” it said.

The energy consumption is made up of oil, natural gas, coal, electricity and renewables.

Global oil consumption grew by 0.9 million barrels per day (bpd), or 0.9 percent, slightly lower than the 10-year average of 1.3 percent per annum.

India posted the third biggest rise in oil consumption in the world at 159,000 bpd, just behind 681,000 bpd of China and 183,000 bpd of Iran.

World coal consumption fell 0.6 percent. “Growth in India, usually a key driver of coal consumption, was only 0.3 percent (0.1 EJ) – its lowest since 2001,” BP said.

Hydroelectric consumption rose by 0.8 percent, below its 10-year average of 1.9 percent per annum. “Growth was led by China (0.6 EJ), Turkey (0.3 EJ) and India (0.2 EJ). The US and Vietnam saw the biggest declines (both -0.2 EJ),” it said.

Releasing the 69th annual edition of the BP Statistical Review of World Energy, BP said this year’s edition – which collects and analyses energy data for 2019 – highlights the global energy trends emerging prior to the current COVID-19 pandemic.

“While some aspects – such as the continuing strong growth in renewables – offer encouragement that the world is moving onto a more sustainable path, others – including continuing persistent growth in carbon emissions – underline the scale of the challenge for the world to reach net zero,” it said.