The World Energy Review publication, now at its 21st edition
by
Eni Staff
25 October 2022
4 min read
by
Eni Staff
25 October 2022
4 min read
Following the first module released in July, Eni publishes the final version of the 21st World Energy Review for 2022. Besides a modular version that makes information available more promptly, an interactive platform has been set up in order to help you navigate through specific selected items.
The main challenge that the energy industry is facing is to improve universal access to affordable energy while, at the same time, accelerating the transition process towards a more sustainable energy mix.
Claudio Descalzi, Chief Executive Officer and General Manager
This year the issue of critical minerals was introduced so as to deepen the energy transition process.
The transition from fossil fuels to low-carbon energy sources calls for the massive deployment of a wide range of clean energy technologies, many of which in turn rely on critical minerals such as cobalt, copper, lithium, nickel and rare earth elements. The increase in consumption of critical minerals for the acceleration of clean energy transition and high geographical concentration of productions in a few countries could make these minerals subject to strong price volatility and geopolitical influence.
The Review includes data on:
oil: reserves, production, consumption, prices and refining industry, crude quality and refining industry;
natural gas: reserves, prices and estimate of production and consumption
renewables: power capacity and estimate of global power generation
critical minerals: (cobalt, lithium, nickel, copper and rare earths) reserves and production
Looking at the evolution of the world of oil, natural gas, modern renewable sources and critical minerals, the following highlights emerge:
Oil prices were up by 70% in 2021 as demand recovered (+6.1% YoY) but remained below pre-pandemic levels. OPEC+ kept a “close eye” on production and market balance, delivering a gradual easing of cuts in the second half of the year while by the year-end bringing down global inventories to below the previous five-year average. Production capacity growth struggled to keep pace with the recovery in demand.
World oil production increased by 1.4% YoY in 2021. There was no significant change in terms of crude quality. It was confirmed that the process of the lightening barrel halted, most notably due to broadly unchanged US production growth.
Gas prices were up in all markets (~+400% in Europe, + 300% in Asia and + 90% in US), with a marked uptick in the second half of the year. The post-Covid rebound in energy consumption and the challenge of adjusting supply up in a timely fashion (also due to the unplanned stoppages of some liquefaction plants) were the main drivers underlying this upward trend.
In 2021 global gas demand returned to growth (+3.9%) after the decline in 2020, notably in Russia (+11.8%) and Europe (+6.7%). Among the top-10 gas consuming countries, the U.S., albeit still at the first place, confirmed the negative trend of 2020 with a -1.6% fall, while China recorded an increase of 4.2%, retaining its position as the largest global importer.
Global gas production also reported a 3.5% increase, after the slowdown in 2020, mainly accounted for by Russia (+9.8%) and Africa (+11.9%, especially Algeria and Egypt).
In 2021 LNG saw its share on total traded gas at 39% (40% in 2020), downwards for the first time since 2015. However, in 2021 the LNG traded volumes grew to 488 Bcm, of which around 70% was imported into Asian countries. Over the year, the U.S. increased its LNG exports by 9%.
In 2021, solar and wind share on total power generation reached 10%, increasing by 1 percentage point with respect to the previous year.
In 2021 solar power continued to dominate renewable capacity expansion with 138 GW of new installations, half of which was installed in China (53 GW) and US (20 GW). Global installed solar capacity reached 855 GW (+19% YoY), almost entirely photovoltaic.
In 2021 wind also kept growing: global capacity reached 823 GW (+12.6% YoY). Compared with 2020 (+111 GW), new installations decreased to 92 GW, roughly half of which were installed in China (+47 GW).
All critical minerals included in this review (cobalt, copper, lithium, nickel and rare earths) saw an increase of production in 2021, reflecting an uptick in demand and prices, after the constraints of the health emergency in 2020.
interactive version to facilitate content navigation
insights into the issue of critical minerals, fundamental for the energy transition
Disclaimer
THIS WEBSITE (AND THE INFORMATION CONTAINED HEREIN) DOES NOT CONTAIN OR CONSTITUTE AN OFFER OF SECURITIES FOR SALE, OR SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OR IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) OR FOR THE ACCOUNT OR BENEFIT OF ANY U.S. PERSON AS THAT TERM IS DEFINED IN THE SECURITIES ACT (A "U.S. PERSON"), AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH AN OFFER OR SOLICITATION WOULD REQUIRE THE APPROVAL OF LOCAL AUTHORITIES OR OTHERWISE BE UNLAWFUL (THE "OTHER COUNTRIES"). THE SECURITIES REFERRED TO HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR PURSUANT TO THE CORRESPONDING REGULATIONS IN FORCE IN AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR THE “OTHER COUNTRIES” AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO A U.S. PERSON UNLESS THE SECURITIES ARE REGISTERED UNDER THE SECURITIES ACT, OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IS AVAILABLE. NO PUBLIC OFFERING OF SUCH SECURITIES IS INTENDED TO BE MADE IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR IN THE “OTHER COUNTRIES.”
In any Member State of the European Economic Area ("EEA"), the information contained in this website is only directed at and may only be communicated to persons who are "qualified investors" ("Qualified Investors") within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the "Prospectus Regulation").
The information to which this website gives access is directed only at persons (i) who are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) who have professional experience in matters relating to investments falling within Article 19(5) of the Order or (iii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which this communication relates is only available to relevant persons and will be engaged in only with relevant persons, or in the EEA, with Qualified Investors. Any person who is not a relevant person, a Qualified Investor or otherwise permitted under applicable law or regulation to access the information, should not act or rely on the information contained herein.
Confirmation of Understanding and Acceptance of Disclaimer
These materials are for informational purposes only and are not directed to, nor are they intended for, access by persons located or resident in the United States, Australia, Canada, Japan or South Africa or any of the Other Countries. I certify that:
I am not resident of, or located in, the United States, Australia, Canada, Japan or South Africa or any of the Other Countries or I am not a U.S. Person; or
If I am a resident of, or located in, the EEA, I am a Qualified Investor within the meaning of Article 2(e) of the Prospectus Regulation; or
If I am a resident of, or located in, the United Kingdom, I am a Qualified Investor and a relevant person.
I have read and understood the disclaimer set out above. I understand that it may affect my rights. I agree to be bound by its terms and I am permitted under applicable law and regulations to proceed to the following parts of this website.
WARNING: the above certification constitutes a "self-certification" pursuant to Decree of the President of the Italian Republic No. 445 of 28 December 2000. False certifications are punishable by law.
You must read the following information before continuing.
The information contained in this segment of the website is not intended for, and must not be accessed or distributed or disseminated to persons resident or physically present in the United Kingdom, Canada, Australia, Japan or any other jurisdiction in which it is unlawful to do so. The information also is not intended for, and must not be accessed or distributed or disseminated to persons resident or physically present in Italy who are not “qualified investors” (investitori qualificati), as defined in Article 2, letter e) of Regulation (EU) 2017/1129 (the “Prospectus Regulation”) pursuant to Article 1, fourth paragraph, letter a) of the Prospectus Regulation as implemented in Italy by Article 35, paragraph 1, letter d) of CONSOB regulation No. 20307 of February 15, 2018.
By clicking the button below labeled “I agree”, you are certifying that (A) if you are in the European Economic Area, you are a “Qualified Investor”; (B) you are not accessing this portion of the website from the United Kingdom, Australia, Canada or Japan; (C) if you are a resident or physically present in Italy, you are a qualified investor as defined under the Prospectus Regulation as implemented in Italy by Article 35, paragraph 1, letter d) of CONSOB regulation No. 20307 of February 15, 2018; and (D) you are not located in a jurisdiction where it is unlawful to access this portion of the website.
You acknowledge that the information and statements contained in the document you are accessing on this website speak only as of the date of such document (or such other date(s) specified therein), and such information and statements may become inaccurate, stale and/or out-of-date thereafter and should not be relied upon for any investment decision.
You acknowledge that the materials on this website that you are accessing are confidential and intended only for you and you agree you will not forward, reproduce, copy, download or publish any of such materials (electronically or otherwise) to any other person if this is not in accordance with the law.
You acknowledge that the access to information and documents contained on this portion of the website may be illegal in certain jurisdictions, and only certain categories of persons may be authorized to access this portion of the website. If you are not authorized to access the information and document contained on this portion of the website or you are not sure that you are permitted to view these materials, you should leave this portion of the website.
You acknowledge that no registration or approval has been obtained and Eni Gas e Luce S.p.A. società benefit and its affiliates assume no responsibility if there is a violation of applicable law and regulation by any person.
By clicking the button below labeled “I agree”, you are confirming that you have read and understood the disclaimer above.
If you cannot so confirm, you must exit this portion of the website
