Coal comeback spurs new carbon emissions growth, says BP

reuters.com Environmental Protection,  International 2018-06-14 15:27:00

Global greenhouse gas emissions began rising again last year as the first pick-up in coal burning since 2013 overshadowed a record expansion in renewable energy, a BP report said.


Energy demand accelerated in 2017 by 2.2%, but a 17% gain in clean power such as solar and wind did little to offset the dominance of fossil fuels in the rapidly expanding global economy.


Demand for hydrocarbons rose across the board, led by a 3% increase in natural gas consumption, the fastest since 2010, followed by a 1.8% rise in oil demand which far exceeded the average of the previous 10 years, data in BP's benchmark annual Statistical Review of World Energy showed.


The opening of new coal-fired power plants in India and China drove coal consumption higher by 1%, highlighting the difficulties developing economies face in meeting demand for electricity while fighting pollution.


BP and other oil companies such as Royal Dutch Shell have led calls to reduce carbon emissions by converting coal power plants to cleaner natural gas.


Still, the share of coal in power generation today remains around 38%, practically unchanged since 1997, while the share of non-fossil fuels slightly dipped as nuclear power capacity shrunk, BP Chief Economist Spencer Dale said.


The power sector absorbs more than 40% of primary energy and accounts for over a third of carbon emissions.


"This is really worrying," Dale told reporters in a briefing before the report was released. "How much progress have we made in 20 years? None."


Carbon emissions grew last year by 1.6%, compared with little to no growth in the previous three years but still lower than average growth of 2.5% in the 10 years to 2014.


A landmark climate agreement reached in Paris in 2015 calls for halving carbon emissions by 2040 and reducing them to net zero by the end of the century to limit global warming.


"Three years of flat growth was a step in the right direction, but it wasn't a big enough step," Dale said.


Shale redraws trade

Steady and robust growth in oil demand over the past five years, the strongest since 2007, was driven by lower crude prices but could be undercut by the recent rally that took prices to their highest since 2014, Dale said.


"There are some signs that the boost from low oil prices may be beginning to wane," he added.


On the supply side, the surge in production of U.S. shale oil, also known has tight oil, has redrawn the global market. The United States overtook Saudi Arabia in 2017 to become the world's second biggest producer behind Russia.


A 2017 agreement between OPEC, Russia and other major oil producers to reduce global output by 1.8 million barrels per day (bpd), combined with a sharp fall in Venezuela's output, drove down global inventories to their five-year average, BP said.


But a 2 million bpd growth in U.S. oil and natural gas liquids since October 2016 offset a large part of the cuts.


"OPEC has always had the power to stabilize the market in response to short-term fluctuations," Dale said. "OPEC has never had the power to try to offset structural long-term shocks to the market (such as) the emergence of new sources of supply and the growth of electric cars."


"The rapid response of U.S. tight oil just reinforces that point."


Rising exports of U.S. crude and new refineries in Asia and the Middle East have also led to a surge in global oil trading, which grew by more than 4% last year compared to a 10-year average of 1.7%, Dale said.


(Writing by Tammy Yang  Editing by Jessie Jia)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 Weekly global coal market news summary (May 13-May 17) 2019-05-17

Import thermal coal comes under pressure amid poor China demand Following further decline of Chinese yuan amid escalation of US-China trading rift, import thermal coal prices edged lower late

2 Weekly natural gas market news summary (May 13-May 17) 2019-05-17

China Apr natural gas output up 7.9% YoY China's natural gas output came in at 14.1 billion cubic metres (bcm) in April, up 7.9% from the same month a year earlier, but the lowest level sinc

3 Chinese thermal coal continues to be flat amid high cost and tepid demand 2019-05-17

Chinese traders are finding it difficult to reach deals on thermal coal at northern ports, as high FOB cost of thermal coal resulting from supply cutbacks in production bases met with tepid buying int

4 Mongolia Apr coal exports down 2% MoM, production slumps 20% 2019-05-17

Mongolia coal exports edged down about 2% from a recent high of March, showed data from its National Statistics Office, while coal production slumped by 20% month on month. In Ap

5 China Apr power coal price index down 5.3% YoY, NDRC 2019-05-17

The monthly-issued China Thermal Coal Index (CTCI) by the National Development and Reform Commission declined 5.26% year on year in April, down for two months in a row from February.

6 China Coal Daily Track (May 17) 2019-05-17

Thermal coal Production area Sales were stable at mines in Yulin city of Shaanxi; most large miners only sold a small volume of coal to other buyers, while the majority went to inside clie

7 Import thermal coal comes under pressure amid poor China demand 2019-05-17

Following further decline of Chinese yuan amid escalation of US-China trading rift, import thermal coal prices edged lower late this week, and will probably remain under pressure in the short term, tr

8 Trade stand-off remains in China spot thermal coal market 2019-05-17

A stand-off of spot thermal coal trades remained in northern Chinese ports, as the market was still oversupplied given coastal power plants' low demand, high stocks and more unwanted cargoes alongside

9 Thermal coal prices remain buoyant in Chinese production centers 2019-05-17

Prices of thermal coal continued to head north in major Chinese production bases, gaining strength from tightened supply amid government control. In Inner Mongolia, coal miners now

10 China to allow users to apply for tariff exemption on US goods, coal on the list 2019-05-17

China announced on May 13 that it will allow part of US imports free from additional tariffs after granting the applications of relevant interest parties. Coking coal, as well as anthracite and other

Most Read Articles

1 Chinese traders expect a weaker spot thermal coal market this week 2019-05-13

Chinese traders anticipated thermal coal prices to weaken at northern China's Bohai-rim ports this week following stableness in the past week. Utilities' buying appetite has stayed lukewa

2 Falling Chinese yuan dampens domestic buying appetite for import coal 2019-05-14

Chinese buying interest for overseas thermal coal subdued, due to the fall of Chinese yuan triggered by the suspension of China-US trade negotiations after the U.S President Donald Trump raised tariff

3 Indonesian thermal coal prices soften on lack of demand 2019-05-16

Offer prices of Indonesian spot thermal coal cargoes edged down amid a lack of demand from Chinese buyers rattled by the falling Chinese yuan caused by US-China trade rift. One Zhejiang-b

4 High cost to limit downside room for China thermal coal 2019-05-15

Spot thermal coal prices are less likely to drop much at northern China ports, underpinned by firm cost and expectations for pre-summer stockpiling. It is more likely for spot price

5 China's railway freight cuts spur concerns on spot thermal coal retreat 2019-05-16

Concerns over possible retreat of spot thermal coal prices were growing among participants at Bohai-rim ports in northern China, after several railway branches under the China Railway Corporation (CRC

6 China to allow users to apply for tariff exemption on US goods, coal on the list 2019-05-17

China announced on May 13 that it will allow part of US imports free from additional tariffs after granting the applications of relevant interest parties. Coking coal, as well as anthracite and other

7 Vietnam Jan-Apr coal imports surge 2.23 times on yr 2019-05-13

Vietnam imported 13.34 million tonnes of coal over January-April, surging 2.23 times from the preceding year, according to preliminary data released by Vietnam customs. As traditional coa

8 A 3rd round met coke price hike looms in China amid tight supply 2019-05-16

Several producers in Jiexiu of Shanxi have proposed to increase met coke price further by 50 yuan/t on the back of active trading. The new offer of Quasi Grade I coke with 0.7% sulfur and

9 S. Korea Apr thermal coal imports up 25.27% MoM 2019-05-15

South Korea's thermal coal imports (including bituminous and sub-bituminous coal) climbed significantly in April compared with a month ago. The country imported a total 7.58 million tonne

10 Spot thermal coal lacks strength at N China ports on soft demand 2019-05-14

Spot thermal coal market continued losing streak at northern Chinese ports, along with the sustained softening buying interest from coastal utilities that hold high stockpiles. It seemed

Scan to download sxcoal.com mobile APP

X