First, let me start off by saying Happy New Year to all the Greenbacker’s out there. I apologize for the wait in between posts but it has been a crazy couple of weeks. Anyway, a few months back BP published their annual BP Review of World Energy 2012. Below are some key charts created by Jeff Tollefson & Richard Monastersky and published in Nature.com.
This chart shows the largest energy users as well as the relative breakdown of their energy supply. Two spikes are clearly noticeable – the US and China. Notice that the US is reliant on coal, oil, and natural gas for a majority of its energy needs while China is heavily dependent on coal, with oil coming in second. The recent boom (no pun intended) of natural gas supply in the US has not only dropped the price of natural gas domestically, but also explains the price decrease of coal. Economics proves if the price of x falls, the price of a substitute of x will also fall in order to keep demand steady. In effect, the benefits of cleaner burning natural gas are offset by increased use of coal in other countries.
The above graph simply illustrates world energy use in million tons of oil equivalent. The final scenario shows what energy consumption would look like if we were to keep the 450ppm limit on carbon emissions.
This last graph shows several interesting figures – the most interesting in my opinion is that China alone accounts for 49% of global coal consumption. However, China’s rise these past three decades has been simply amazing. Already there are more than 170 cities in China with populations over a million. Fueling this rapid expansion will require significant increases in coal, oil, natural gas, and renewable energy. By leveraging the power of new technologies and global markets, renewable energy can compete with fossil fuels. Lets hope that renewable energy plays an even greater role in mankind’s future than current trends predict.