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
14 May 2025
The invisible hand of the market has seen increasing transparency but much more needs to be done to build a better understanding
13 May 2025
A fall in Venezuelan output drives overall production lower, as Saudi Arabia starts to slowly bring more crude to the market
12 May 2025
With the gas industry’s staunchest advocates and opponents taking brutal blows, the sector looks like treading a path of insipid indifference