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
7 February 2025
The history of tin production and prices offers a preview of the future oil market. If correct, $35/bl could become the new normal for crude for several years without further OPEC+ intervention
7 February 2025
Changing oil demand patterns mean different downstream economics amid switch to naphtha, LPG and other petrochemicals
6 February 2025
Policy initiatives will take time to reverse declining output, and restoring investor confidence is far from certain
6 February 2025
This premier event is poised to address the evolving technology and investment demands of North America’s thriving chemical and pharmaceutical sectors