Oil gained market share in the global energy mix last year for the first time since 1999
OREANDA-NEWS. Oil gained market share in the global energy mix last year for the first time since 1999, accounting for 32.9pc of total energy consumption in 2015, BP said today in its Statistical Review of World Energy.
Global oil demand rose by 1.9mn b/d last year, compared with a 1.1mn b/d increase in 2014, BP said. "There is no puzzle there. When the price of something falls by the best part of 70pc, the demand increases," BP chief economist Spencer Dale said.
Demand from OECD countries increased by 510,000 b/d, or 1.1pc. This compares with an average annual decline of 1.1pc over the past decade, BP said. Demand growth in the US and EU was "well above recent historical averages" at 290,000 b/d and 200,000 b/d, respectively. This was partly offset by a 160,000 b/d decline in Japanese demand.
Non-OECD demand increased by 1.4mn b/d — or 2.6pc — driven by a 770,000 b/d rise in Chinese demand. Indian demand grew by 310,000 b/d, as it overtook Japan as the world's third-largest oil consuming nation.
"The strength in oil demand was most pronounced in the consumer-focused fuels, particularly gasoline and jet fuel, buoyed by the boost to consumers' purchasing power from the low oil price," Dale said. "Growth in diesel consumption, which is more exposed to industrial activity, was more subdued," he said.
Global oil production growth outpaced the increase in demand for a second consecutive year. Output rose by 2.8mn b/d or 3.2pc — the strongest growth since 2004, BP said.