ENERGY HUNGRY WORLD CUTS BACK

The question: Is this cutting back or running out?

BP Report Says World Energy Use Rose 2.4 Pct In 2006, China Up 8.4 Pct
Pablo Gorondi, June 12, 2007 (AP via Yahoo Finance)

WHO
British Petroleum (BP), chief economist Christof Ruhl,

WHAT
BP Statistical Review of World Energy 2007:
- The Bad news: The world ate 2.4% more energy last year than the year before.
- The Good news: That was an improvement on the previous year’s 3.2% jump.
DOE's trend indications match BP's findings (click to enlarge)

WHEN
Report on 2006 energy use released June 12.

WHERE
Report on the world, from BP, based in London

WHY
- BP: high prices slowed growth.
- China energy consumption went up 8.4%. Now 15% of world consumption.
2006 growth was just above the 10-year average.
- Highest growth: Asia-Pacific region: 4.9%
- North America down 0.5% because US was down 1%, Canada was up 1.7% and Mexico was up 4%.
In crisis there is opportunity. (click to enlarge)

- Europe/Eurasia up 1.5%. Denmark biggest growth in EU, 12.7%, Portugal 2nd at 8.2%.
Biggest EU drops in growth was Sweden, 6.9%, and Slovakia, 4.8%.
- 2006 oil prices average: $65.14/barrel (Brent), almost 20% over 2005. World oil use up 0.7%, lowest since 2001 and half the 10-year average. Oil and natural gas reserves unchanged.
- Coal consumption up 4.5%, China coal use up 8.7%, down in US, up in Britain
- Nuclear up 1.4%
- Wind up 25%, though still 0.9% of all power. Solar also up big. Ethanol up 22%.

QUOTES
Ruhl: "Last year showed markets at work…Primary energy consumption growth has decelerated -- particularly for fuels which have seen the highest increase in price."