Growth In Environmental Concern As Demand For Oil And Gas Increases

Oil and Gas

Global oil consumption grew in 2017 by 1.8 percent, with an average of 98million barrels per day according to British Petroleum (BP); this growth in oil consumption exceeded the average growth of oil consumption in the decade of 2006 to 2016. A critical factor that explained the growing oil demand is the drop in the price of crude oil. According to BP, of this 1.8 percent global growth, oil importing countries accounted for about 83 percent of this growth, while oil exporting countries accounted for the remaining 17 percent. This implies that the drop in the price of oil had the most significant impact on consumption of oil importing countries.

Global consumption of gas increased to 96 billion cubic metres in 2017, representing a growth of 3 percent from the previous year. The growth in gas consumption was driven by the Asian economies, particularly China whose gas consumption was 31 billion cubic metres representing a 15.1 percent growth in consumption from that of 2016.

Oil accounted for the chunk of global energy consumption, followed by coal and gas respectively. In 2017, crude oil, coal and gas accounted for about 4.7 billion tonnes of oil equivalent (btoe), 3.5 btoe and 3 btoe respectively. This shows that despite the environmental concern, hydrocarbon still continues to play a significant role in energy consumption.

 

China flag and trend of global crude oil consumption. Source: Wikipedia and ENI

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