The Fastest Growing Energy Sectors Of 2019

Source: Environmental Defense Fund

#2 Natural Gas

Natural gas demand grew at an incredible 4.6 percent clip in 2018, with 314 million tons delivered, and the growth streak has extended to the current year driven by the ongoing transition away from coal-fired electric power, decent economic growth and weather-related demand amid a price slump of historical proportions. 

Natural gas now accounts for 45 percent of the increase in energy consumption over the past decade.

Natural gas demand is expected to moderate though, with the IEA saying demand will increase 2 percent in 2019 and 1.6 percent per year on average over the next five years, mainly due to lower Chinese consumption, which is projected to rise just 8 percent per year through 2024 after hitting 18.1 percent in 2018.

The IEA expects natural gas consumption to increase 40 percent to nearly 200 quadrillion Btu by 2050.

Natural gas can play a key role in lowering greenhouse gas emissions. The rapid adoption of natural gas is responsible for the steady decline of coal-fired power in many countries including in the U.S.

Source: CNBC

#3 Nuclear Energy

Nuclear energy continues to make a growing contribution to the quest for clean and reliable energy. Global nuclear generation clocked in at 2,563 TWh from the world’s operable 449 reactors with nine new reactors joining the grid while seven were closed.

A total of 55 reactors are under construction with construction starts on five reactors. The sector is experiencing strong growth, with more than 20 new reactors scheduled to be connected to the global grid before the end of 2020.

Nuclear energy supplies about 10 percent of the world's electricity and is the world's second largest source of low-carbon power. This proportion is expected to remain unchanged through 2050. The US is even more dependent on nuclear energy, with the power source generating 808 TWh of electricity in 2018 or 20 percent of total generation. This trend is expected to hold over the next couple of decades though it has its fair share of critics.

Losers:

#1 Oil

The world’s oil fields have been pumping considerably less oil in the current year compared to the peak last year. According to Y-Charts data, crude oil production clocked in at 82.46 million b/d in August vs. 84.72 million b/d in November 2018, a five-year peak.

Nevertheless, this decline mainly came from OPEC producers, with the United States hitting a record 12.8 million b/d, the most by any country.

Source: Y-Charts

But as much as we would like to rapidly ramp our renewable energy sources and clean energy push, it’s unlikely that we will be able to do so fast enough to keep up with our growing energy demands. Indeed, oil output is expected to keep growing over the next decade, with the United States accounting for 85 percent of that increase.

#2 Coal

In the ongoing race to clean and sustainable energy, coal is emerging as the biggest loser. 

According to CarbonBrief, global electricity generated from coal is on track to drop by 300 TWh, or 3 percent, in the current year. The biggest uses of coal are electricity generation, cement manufacturing, steel production and as liquid fuel.  Related: OPEC+ Agrees To Deeper Output Cuts

Record declines are being seen in developed countries, including the EU, Germany and South Korea and are not being matched by increases elsewhere. The largest reduction is in the US with several large coal-fired power plants recently folding.

Source: CarbonBrief

About 38 percent of the world’s electricity comes from coal-power plants, 13 percentage points higher than second-placed renewables.

Source: WorldCoal.Org

The main counteracting force to this growing trend is increasing generation in south east Asia. But with numerous call for a global coal phase out, electricity generation from coal is likely to plunge below 30 percent in less than two decades with renewables taking over as the leading source.

By. Charles Kennedy for Oilprice.com

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