The world’s oil sector is undergoing some tectonic shift; the US is the largest crude producer now, overtaking the OPEC heavyweight Saudi. US, because of the shale revolution, has also pushed the Russians to the second position to become the largest producer of oil and natural gas combined.
According to world energy giant, BP’s energy report, the US has recorded its highest annual oil production in 2014, surpassing the previous record achieved in 1970.
British Petroleum’s report –‘Statistical Review of World Energy’; which is considered to be an authentic data card on world’s energy sector, brings some other tectonic shifts besides the US march in crude and gas.
First, world’s oil industry need not look towards China anymore demand booster as the Chinese demand is slowing. The Middle Kingdom has now reached its peak oil consumption. Slowing industrialization and declining GDP growth rate are reducing Chinese consumption growth.
Chinese consumption growth was the slowest since 1998, though it continued to be the biggest contributor to additional energy consumption.
Second, the solar revolution is getting serious to compete with fossil fuel sources. Most importantly, renewable including solar and nuclear energy consumption increase was higher than that of fossil fuels. BP feels that the solar revolution will pick up faster momentum in the coming years. It will dramatically reduce the demand for oil and gas in the coming decade.
Happy news for climate campaigners is also there in the report. The global CO2 emissions from energy use grew by just 0.5% in 2014, the weakest since 1998.
BP’s review is one of the widely respected and authoritative publications in the field of energy economics, referred by the media, academia, world governments and energy companies.