Energy - Adapting to a Changing World

The paper presents highlights of the 62nd Statistical Review of World Energy prepared by BP Group Economics. It puts forward BP's view on the dynamics of global energy markets and factors determining prices on these markets. The Report illustrates key trends in production, consumption and trade in primary energy that are affected by both shifting structure of the world economy and policy interventions by individual governments. Particular attention is devoted to development of unconventional sources of supply: shale gas, tight oil, as well as heavy oil and biofuels. The paper also looks into inter-dependency of particular energy markets and impact this has for inter-fuel competition. The paper concludes that uncoordinated policy interventions aiming at carbon emission reductions lead to unexpected and unpleasant results.