The global economy continues to halt recovery from COVID19, the energy resources and their prices threaten to derail this recovery. In 2020, a historic drop in energy demand and prices was observed after the Coronavirus pandemic.
Later on, when travel restriction was normalized, demand and supply started recovering, but it stained the fossil fuel markets primarily for oil, gas, and coal. The oil prices skyrocket as the demand chases supply during the recent Russia-Ukraine crisis.
The recent surge in oil prices is due to the fact that global energy markets are naturally volatile. The world consumes approximately 100 million barrels of oil each day. While several IEA projects boost the use of renewables, enhance the energy efficiency, and shift toward electric vehicles, the oil will continue to meet the rising demand for petrochemicals and fuel transportation.
With more sophisticated living standards, it is estimated that by 2040 electricity generation is expected to increase by 52%., as globally, 772 million people still live without access to electricity.
Globally, the total amount of energy consumed has risen dramatically over time. Undoubtedly it is related to both population growth and the industrial revolution. The use of renewable energy resources plays a huge role in the rise of energy consumption. The abundance in the availability of energy resources has transformed the course of humanity over the last few centuries.
Oil was started being pumped out in 1860, having a greater energy density and being more versatile than coal, still, oil got a position as a significant energy source by 1920, and it surpassed coal as an energy source until about 1940.
Of course, the global progress rate was way slow back then, but it is probably hard to avoid the conclusion that the world’s energy supply system has gone through inertia and resulted in sluggish change.
The International Energy Agency (IEA), in its 2021 report, showed that demand for natural gas worldwide is expected to rise by 31% by 2040, providing 17% of total energy consumed worldwide, and global oil demand will increase by 21%, supplying 35% of total energy consumed.
Nonetheless, regardless of the source, whether oil, coal, or gas, the energy demand grows. The data shows that the global population is expected to rise by about two billion over the next two decades. With more sophisticated living standards, it is estimated that by 2040 electricity generation is expected to increase by 52%., as globally, 772 million people still live without access to electricity.
As per data, fossil fuels supply about 80% of the energy we require. The remaining sources include nuclear power, biofuels, hydro, and other renewables such as solar, wind, and geothermal energy.
Another report of IAE released in Oct 2021 shows that Global energy demand and energy-related carbon emissions will continue to rise by 2050, with oil staying the most significant energy source just before surging renewables.
This report also reveals that driven by overgrowing population and economic growth, the world’s energy demand is expected to increase 47% in the next 30 years, particularly in developing Asian countries. This will require a rise in oil and natural gas production, absent technological breakthroughs, or significant policy changes.
Liquid fuel will make up 28% of global energy demand by 2050, compared with renewables at 27%. This assumes a 36% increase in liquid fuel demand and a 165% increase by renewables from 2020 levels.
Gathering all this evidence through peers, mechanical engineers, and research scholars/ scientists, Scientia Pakistan brings its exclusive edition on “energy resources’, which is uniquely the most demanding topic these days. We believe that this edition will be an excellent read for mature readers and researchers.
Have a lovely weekend.
References:
- https://www.spglobal.com/commodity-insights/en/market-insights/podcasts/oil/031722-russia-hsfo-high-sulfur-fuel-oil-bunker-vacuum-gasoil-ukraine
- https://ourworldindata.org/energy-production-consumption
Saadeqa Khan is the founder, CEO, & Editor-in-Chief of Scientia Pakistan. She’s a member of the Oxford Climate Journalism Network (Second Cohort) and NASW. Saadeqa is a fellow of NPF Washington, The Falling Walls Foundation, and the Science Journalism Forum. Saadeqa has won several international journalism grants and awards for her reports.
