Energy
Global primary energy consumption reached a new record for the second consecutive year with non-OECD countries dominating both the share and annual growth rates. Fossil fuels continue to underpin their development accounting for 84% of their energy mix.
The contrasts between the northern and southern hemispheres is quite stark. Consumption of primary energy in the Global South first exceeded that of the Global North in 2014. In 2023 it accounted for 56% of total energy consumed and grew at twice the global average rate of 2%. The Asia Pacific region was responsible for 85% of the Global South’s demand (and 47% of global demand) where the economies of China, India, Indonesia, Japan and South Korea dominated. Whilst Southern & Central America, and Asia Pacific experienced growth rates above the global average, total demand in Africa dropped by 0.4% in 2023 and electricity consumption remained flat. Electricity demand in both North America and Europe experienced falls of -1% and -2% respectively. In these regions, electricity demand in particular is increasingly impacted by energy efficiency regulations, energy-efficient lighting, and changing consumer habits.
The financial sector is a section of the economy made up of firms and institutions that provide financial services to commercial and retail customers. A strong financial sector is a sign of a healthy economy.
The modern financial sector is not a monolith but is composed of many different players, each playing an important role. Money is often called the blood of an economy, and the financial sector is the system that circulates money throughout the economy, enabling transactions at all levels. From buying a chocolate bar to acquiring a company, nothing escapes the touch of the financial sector.
Energy Production
Energy production – mainly the burning of fossil fuels – accounts for around three-quarters of global greenhouse gas emissions. Not only is energy production the largest driver of climate change, but the burning of fossil fuels and biomass also comes at a large cost to human health: at least five million deaths are attributed to air pollution each year.
In 2023, global oil production reached a record level of just over 96 million barrels per day. The US remained the largest producer seeing its output grow by over 8%. In contrast, Russia’s production decreased by over 1% as a full year of international sanctions were felt. Southern & Central America continues to grow rapidly post-COVID and recorded the highest growth rate (11%) for any region in 2023. In Asia Pacific, China’s production rose by 2%, accounting for around 57% of the region’s total production. Whilst the US lost its position as the largest oil refining market by capacity with China reaching 18,484 thousand barrels per day, throughput of refined products from China still lags the US with a utilisation of nearly 82% compared to around 87%.
Energy Consumption
The largest energy consumers include Iceland, Norway, Canada, the United States, and wealthy nations in the Middle East such as Oman, Saudi Arabia, and Qatar. The average person in these countries consumes as much as 100 times more than those in some of the poorest countries. In many of the poorest countries in the world, people consume very little electricity, which is estimated to be lower than 100 kilowatt-hours per person in some places.
Consumption of oil exceeded 100 million barrels of oil per day (mbpd) for the first time ever. Gasoline, diesel and kerosene (aviation) use are trending back to or beyond their 2019 levels, but within the data sets there are some national/regional differences. Whilst global gasoline consumption (25 mbpd) was just above its 2019 pre-COVID level, kerosene, although growing strongly (17.5% in 2023), has yet to return to its 2019 peak.
The Milestone
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Industry Regulation
Along with sustainability and affordability, secure supply of energy is a key pillar of the energy trilemma. In 2023, the total international trade of oil, gas, and coal was 53% higher than it was in 2000. Collectively, North America, Europe, and Asia Pacific regions consumed 78% of the world’s total energy in 2023. Over the past two decades, North America’s energy system has been transformed by the growth in unconventional oil and gas that began in the early 2000s. As a result, in the past 10 years the region has moved from being a net importer of energy to a net exporter. In 2023, oil production in North America was 16% above its domestic consumption whilst gas production sat at 14% above its demand level. Since the 1980s, Europe has consistently been a net importer of energy.
Its biggest deficit in 2023 was in oil where production only met 23% of demand. Whilst European gas production was only able to meet 44% of consumption, the balance with coal was less severe with production meeting 58% of demand. The Asia Pacific region had the highest demand of any region in 2023, consuming 292 EJ of primary energy, 47% of the world’s total demand. Like Europe, it has consistently been a net importer of energy since the 1980s. In 2023, its biggest shortfall was in servicing its demand for oil with production only meeting around 19% of its consumption. Its gas position was more positive with production able to meet 74% of its demand. For coal, production in the Asia Pacific region achieved a surplus in 2023, with supply exceeding the region’s demand by 5%.
Consumption of oil exceeded 100 million barrels of oil per day (mbpd) for the first time ever. Gasoline, diesel and kerosene (aviation) use are trending back to or beyond their 2019 levels, but within the data sets there are some national/regional differences. Whilst global gasoline consumption (25 mbpd) was just above its 2019 pre-COVID level, kerosene, although growing strongly (17.5% in 2023), has yet to return to its 2019 peak.
Our Core Expertise
- Core 1: Clean and Renewable Energy
- Core 2: Decentralized Energy Production
- Core 3: Energy Storage Solutions
- Core 4: Digitalization and Smart Technologies
- Core 5: Electricity
- Core 6: Energy Transition
- Core 7: Geopolitical Energy
- Core 8: Energy and Social Welfare
- Core 9: Hydrogen Economy
Meet Our Experienced Energy
Jaime Ruiz-Cabrero
Managing Director & Senior Partner
Jaime Ruiz-Cabrero
Managing Director & Senior Partner
Jaime Ruiz-Cabrero
Managing Director & Senior Partner
Jaime Ruiz-Cabrero
Managing Director & Senior Partner