Outlook 2022: The energy transition – the pendulum swings, with unintended consequences
Change can bring volatility. And there is significant change ahead
It has long been true that economic growth and energy demand are linked. In 2020, we saw the pendulum swing one way—global GDP down by almost 5pc, and oil demand down by 9pc in the year, as economic output and mobility was constrained. This also led to a 5.8pc decline in global emissions, according to the IEA, the largest decline since the Second World War. It is clear the pendulum has swung back the other way this year—with Covid-19 restrictions easing, mobility and economic activity increased. The result is higher GDP but also higher demand for fossil fuels. This has and will result in higher emissions globally, with much of the ‘progress’ last year being undone. Despite renewable capacity
Also in this section
10 May 2024
The US’ contentious LNG permitting pause has prompted criticism from CEOs and wildly differing interpretations from politicians
9 May 2024
Pipeline boosts Canada’s oil industry by widening its export options, making it less reliant on US market and bringing Asia into the mix
8 May 2024
Despite Australia’s first import terminal nearing completion, the prospect of additional regasification projects is far from certain