Trump clings to coal as worldwide demand plummets
- Author: Zachary Reyes Jun 14, 2017,
Jun 14, 2017, 2:28
Trump announced earlier this month he will withdraw the United States from the Paris climate accord. That's the largest decline in the history of BP's survey, which the British energy company has issued annually for more than six decades.
Global coal production fell 6.2%, the most ever recorded, said BP's Statistical Review of World Energy, a closely watched compendium of information about global energy trends. More than half that growth came for new wind turbines.
The fall was partly due to the UK's "extreme" move away from the energy source, with consumption more than halving past year to levels last seen at the start of the industrial revolution.
While the slowing energy demand growth was a result of sluggish global economic activity, it also stemmed from more efficient of engines and factories, he said. But new data show market demand for the dirtiest of fossil fuels is plummeting worldwide.
Oil production grew by half a percent, or 400,000 barrels per day, the lowest gain since 2009, as energy companies slashed spending.
Iraq, China and Russian Federation saw additions to reserves while USA reserves dropped by more than 10 percent to 48 billion barrels.
"U.S. tight oil is like a Weeble: It falls off but then it bounces back up again", Dale said.
The economist said he believed the recent deal by members of the oil cartel Opec to continue cutting output would begin to make inroads into global oil stocks towards the end of 2017. This includes the two largest, the US and China, where three decades of rapid industrialization had seen consumption grow exponentially.
"It feels to me like we are seeing a decisive break in coal relative to the past", Dale said.
Not including hydroelectric power, renewable energy grew by 12% last year, and although this was below the 10-year average growth rate of 15.7%, it still marked the largest annual incremental increase in output on record. The industry now accounts for 4 percent of primary energy production worldwide. China, meanwhile, overtook the United States for the first time as the largest producer of renewable power. He said he would pull the US out of a global pact to limit carbon emissions because it would hurt industries like coal production, and his administration has moved to peel away regulations seen as harmful to the sector.