Plunge in energy demand almost twice than predicted by BP

The global 4.5percent drop in energy demand was close to twice the size of the 2.5 percent that BP predicted, says the company's executive vice president of strategy and sustainability, Giulia Chierchia.

The BP executive also described the resulting carbon emissions reduction as “far bigger” than what the company predicted.

Chierchia noted that oil consumption is estimated to have dropped by 9.3 percent, or over 9 million barrels a day, in 2020.

He added that the drop in oil demand accounted for around three-fourths of the decline in total energy consumption and a key factor for the near-record plunge in the carbon intensity of the energy mix.

Chierchia also noted that gas demand is estimated to have fallen over 2 percent in 2020, close to the decline seen caused by the 2009 financial crisis.

Except in China, where gas demand grew by almost 7 percent last year, Chierchia pointed out that gas consumption fell in most regions.

Overall, energy demand fell massively last year.

Americans used 92.9 quads (quadrillion British Thermal Units) of energy in 2020, approximately 7 percent less energy compared to 2019, according to the Lawrence Livermore National Laboratory.

The highest recorded US energy use was in 2018 when 101.2 quads were consumed.

The fall in the carbon intensity of the energy mix coincided with gains for renewables, with solar and wind going up by 19 percent and 10 percent for 2020.

In June, the International Energy Agency forecasted that global crude oil demand would return to its pre-pandemic high during the final quarter of 2022.