Global energy consumption grew at 2.5 per cent in 2011, less than half the 5.1 per cent rate it attained in 2010, BP said in its annual Statistical Review of World Energy, published on Wednesday.

India's energy consumption rose by 7.4 per cent to 559.1 million tonnes of oil equivalent, while China accounted for 71 per cent of the growth in consumption.

‘Eventful year'

CEO Mr Bob Dudley described it as an “unusually eventful year” for the global energy market, hit by the political upheaval in West Asia, which “underscored the importance of maintaining spare capacity and strategic stockpiles”, as well as the Japanese earthquake.

As a result for the first time in history, oil prices averaged over $100 a barrel.

Mr Dudley argued that it was important to recognise open markets as a “key ally” in the world's ability to deal with disruptions, and had provided flexibility that was “crucial to the world's ability to cope with last year's disruptions.”

Losses of oil production in Libya and elsewhere were more than offset by “large increases” by Middle Eastern OEC nations and “record” production from Saudi Arabia, the UAE and Qatar, with global production up 1.3 per cent.

In India production rose to 858,000 barrels a day, a 3.9 per cent increase on the year before, while reserves fell slightly to 5.7 thousand million barrels, from 5.8 thousand million the year before.

Indian refinery capacity rose to 3,804 thousand barrels daily in 2011 from 3,703 thousand barrels daily the year before.

Coal was the only fossil fuel for which consumption grew at an above average rate globally, up 5.4 per cent in the year, accounting for 30.3 per cent of the global energy mix, its highest level since 1969. India produced 222.4 million tonnes of oil equivalent in 2011, up from 217.5 million in 2010

Renewables

Natural gas production globally rose by just over 2 per cent, with Europe recording its largest ever decline, and production in India declining sharply by 9.3 per cent to 46.1 billion cubic metres from 50.8 billion.

While global usage of nuclear energy fell by 4.3 per cent, India's usage rose sharply, up 39.6 per cent to 7.3 million tonnes of oil equivalent in 2011 — now accounting for 1.2 per cent of total energy consumption in the country (it was the fastest growing energy sector by consumption for India).

India's hydroelectricity consumption also rose sharply, up 18.9 per cent to 29.8 million tonnes of oil equivalent, while consumption of other renewables rose by 20.6 per cent.

Published on June 14, 2012