(EnergyAsia, June 14 2013, Friday) — World production of oil, shale, oilsands and natural gas liquids (NGL) collectively rose 2.2% to a record 86.152 million b/d last year, with the US responsible for nearly half that increase, said BP.
But average oil prices were also at an all-time high as demand continued to climb to almost breach 90 million b/d for the first time, the UK major said in the latest annual edition of its widely followed Statistical Review of World Energy. Dated Brent crude price averaged US$111.67 per barrel in 2012, an increase of about 40 cents per barrel from the 2011 level.
BP focused the 2013 edition on the US taking top spot in growing its oil and gas production last year. US liquids production surged 13.9% to reach 8.905 million b/d last year, building on the previous year’s growth of 4.2%.
“The US recorded the world’s highest growth in production of both oil and natural gas in 2012, on the back of increasing production of unconventional hydrocarbons such as tight oil, an example of the increasing diversity of energy sources as the global market continues to adapt, innovate and evolve,” said BP.
“With rising natural gas output driving prices lower in the US, natural gas displaced coal in power generation, causing the US to experience the largest decline of coal consumption in the world.”
Bob Dudley, BP Group Chief Executive, said the data show that the world has ample supply of energy, leaving the industry with the challenge of making “the best choices about where to invest.”
Reflecting the slowdown in world economic growth and increased efficiency in energy use, BP said global energy consumption grew by 1.8% in 2012, down from 2.4% the previous year.
There was no escaping the fact that oil demand growth remains well supported with last year’s consumption reaching an all-time high of 89.774 million b/d. This was up 11.3 million b/d or 14.4% from 78.47 million b/d a decade ago.
The emerging economies, led by China and India, accounted for 56% of global energy use last year, up from 42% in 1993, said BP. Oil remained the world’s leading fuel, contributing to 33.1% of the global energy mix.
“2012 was yet another year of adaptation to a changing energy landscape,” said Christof Rühl, BP’s Chief Economist. “As the non-OECD economies industrialise, they unlock ever more resources. The data tell us that the industrialising part of the world not only outpaces the OECD in terms of proved reserves growth, it also contributes its fair share to energy production.”