BP Energy Report: US Production on the Rise, Global Demand Slows

By Commodity HQ  JUN 14, 2013 12:00 PM

The energy company recently reported on trends in renewable energy, coal, natural gas, and nuclear power.

 


While the global economic slowdown has impacted nearly every corner of the investable universe, one commodity group that has been hit particularly hard has been energy. Oil, gas, coal, and even nuclear power have all fallen victim to sluggish economic growth and dwindling global demand. And in its annual energy report, BP plc (NYSE:BP) takes a closer look at how exactly the global recession has impacted the supply and demand of some of the most widely traded commodities on the market.

US Pumps Out More Oil, but Global Demand Dwindles

BP reported that global energy consumption grew by only 1.8% in 2012, well below the 10-year average of 2.6% and lower than 2011′s 2.4% figure. From the emerging market economies, which typically drive the most demand, only China and India saw increased consumption; together, the demand from these countries accounted for almost 90% of the global increase. In the US, energy demand fell 2.8%.

From the supply side, however, the US saw its largest ever annual increase in oil production. According to the report, the US produced 8.9 million barrels of oil per day. BP cites “unconventional” oil as the main reason behind the surge, as controversial techniques of fracking and horizontal drilling have made reserves more accessible.

In other energy commodities, BP reported on several noteworthy trends:
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Editor's note: This article by Daniela Pylypczakwas originally published on Commodity HQ.
No positions in stocks mentioned.