World energy supplies come at a cost

First Break presents a snapshot version of the BP Statistical Review of Energy 2006, the 55th in the series, covering data on worldwide energy production and consumption up to the end of 2005. BP chief economist Peter Davies said at the launch of the BP Statistical Review of World Energy 2006 that supply availability in 2005 continued, but at the cost of high prices. ‘Market adjustments are beginning and will continue. There has been a price effect already with coal and gas prices falling and oil consumption growth slowing sharply and inventories rising.’ Energy developments Crude oil, natural gas and coal prices all hit record (nominal) levels in 2005. Combined with a modest reduction in global economic growth, this resulted in a slowdown in energy consumption growth. World primary energy consumption increased by 2.7% in 2005, below the previous year’s strong growth of 4.4% but still above the 10 year average. Growth slowed from 2004 in every region and for every fuel. The strongest increase was again in the Asia Pacific region, which rose by 5.8%, while North America once more recorded the weakest growth at 0.3%. US consumption fell slightly, while China accounted for more than half of global energy consumption growth.