Industry News

Global energy demand is expected to drop by 5% in 2020

date:2020-10-20 13:42:55    

  On October 13, the International Energy Agency (IEA) announced the "Global Energy Outlook" that due to the slowdown in global economic growth due to the new crown epidemic, global energy demand is expected to fall by 5% in 2020, and the full recovery of energy demand may be postponed to 2025 .

  The latest research results of the World Energy Outlook show that in 2020, global energy demand will drop by 5%, energy-related carbon dioxide emissions will drop by 7%, and global energy investment will be reduced by 18%.

  The report shows that global oil demand this year is expected to drop by 8% year-on-year, coal demand by about 7% year-on-year, natural gas demand by 3%, and renewable energy consumption will increase slightly.

  The report pointed out that global energy demand will not return to pre-epidemic levels until early 2023. If the new crown epidemic remains unresolved for a long time, or the economic situation sees further decline, this point of time will have to be postponed to 2025.

  The International Energy Agency stated that it is too early for the epidemic to stimulate or hinder governments and the energy industry. They are seeking to improve the sustainability of the energy industry. "According to the current global energy policy, we are far from reaching our climate goals," said Fatih Birol, Director of the International Energy Agency.

  "Global oil demand growth will stop in the next ten years, but if the current government policy does not change significantly, oil demand will not drop significantly. With the global economic rebound, oil demand will return to its pre-epidemic level." He said.

  Birol said that the uncertainty of future demand and the plunge in oil prices in 2020 may mean that oil producers are uncertain about how to measure investment decisions, leading to mismatches between supply and demand, which intensifies future market volatility.

  At the same time, renewable energy, led by solar energy, is playing an increasingly important role in the global energy system. According to the World Energy Outlook, under current policy conditions, renewable energy will account for 80% of the increase in energy demand in the next 10 years. Birol believes that solar energy is becoming the new overlord of the global electricity market.

  "It is estimated that after 2022, the installed capacity of solar energy will continue to maintain a record growth. If local governments continue to increase investment in clean energy, the development of wind and solar energy will be amazing, which will also help overcome the challenges brought by global climate change. "Birol said.

  "Outlook" also pointed out that for the global energy system, the epidemic has caused more damage than any previous incident, and the impact will continue for several years. "From the current point of view, it is too early to discuss whether this crisis will accelerate or hinder the clean transition of global energy. It depends on how governments face current challenges," said the International Energy Agency.

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