What’s inside?
1 Introduction
1 Group chief executive’s introduction
2 2008 in review
6 Oil
6 Reserves
8 Production
11 Consumption
16 Prices
17 Stocks
18 Refi ning
20 Trade movements
22 Natural gas
22 Reserves
24 Production
27 Consumption
30 Trade movements
31 Prices
32 Coal
32 Reserves
32 Prices
34 Production
35 Consumption
36 Nuclear energy
36 Consumption
38 Hydroelectricity
38 Consumption
40 Primary energy
40 Consumption
41 Consumption by fuel
43 R/P ratios
44 Appendices
44 Approximate conversion factors
44 Definitions
45 More information
Group chief executive’s introduction
Energy in 2008 followed the economic headlines
Tony Hayward Group Chief Executive
June 2009
Welcome to the 2009 edition of the BP Statistical Review of World
Energy.
2008 was a year of truly unprecedented developments, for the world
economy and in energy markets. Prices for all forms of traded
energy rose steeply, some reaching record highs, and then fell
dramatically. Producers and consumers alike are wondering where
global energy markets are headed, and how to manage the myriad
issues around energy, including price volatility, security and
climate change.
In challenging times such as these, clear and objective perspectives
are needed, and this is what BP’s Statistical Review has offered
for 58 years. I hope you will fi nd this Review to be a useful
source of information on today’s energy situation . and a source
of insight in thinking about tomorrow’s.
As ever, the world economy is the key driver of energy consumption.
It is easy to forget that until the middle of 2008, the economy
continued to grow. In retrospect, last year represented the end
of one of the strongest periods of economic growth ever recorded.
However, the economy had already started to slow, most likely
not unrelated to the high price of energy, and the fi nancial
crisis in September then triggered a sharp recession . with critical
implications for global energy consumption.
Energy prices followed these economic headlines, making for a
year of very different parts. Oil prices increased steadily early
in the year, exceeding $140 per barrel in early July . a record
even on an infl ation-adjusted basis. But then prices collapsed,
falling by more than 70% by the end of the year. Market prices
for natural gas and coal followed similar trajectories. Over the
whole of 2008, average prices for all forms of primary energy
increased signifi cantly, with annual oil prices rising for a
seventh consecutive year, a fi rst in the nearly 150-year history
of the oil industry.
Primary energy consumption growth slowed in 2008, as did growth
for each of the fossil fuels. All the net growth in energy consumption
came from the rapidly industrializing non-OECD economies, with
China alone accounting for nearly three-quarters of global growth.
For the fi rst time, non-OECD energy consumption surpassed OECD
consumption. For a sixth consecutive year, coal was the fastest-growing
fuel - with obvious implications for global CO2 emissions.
The use of renewable fuels again rose rapidly, often benefi tting
from government support. Although renewable energy continues to
play only a small role in the world’s energy mix, the share is
rising rapidly in some countries and there are the beginnings
of a material impact. Data on renewable energy . ethanol production
as well as wind, solar and geothermal power generation capacity
. may be found at www.bp.com/statisticalreview.
In 2008 the world was no longer supply-constrained, as production
growth exceeded that of consumption for all fossil fuels, particularly
later in the year. Expanded OPEC production drove increases in
world oil supply, even as consumption declined. The cost-effective
development of unconventional gas, enabled by technological innovation,
drove the largest-ever increase in US natural gas supply, and
for coal, strong growth in China was once again a key driver.
Seen in this context, fundamental market forces help to explain
the downward pressure seen on energy prices later in the year.
Our data confi rms that the world has enough proved reserves of
oil, natural gas and coal to meet the world’s needs for decades
to come. The challenges the world faces in growing supplies to
meet future demand are not below ground, they are above ground.
They are human, not geological.
I would like to thank all those around the world who have been
involved in preparing this Review - in particular our government
contacts in many countries who helped to compile the data