BP Statistical Review of World Energy, June 2009

Abstract

The developments on the world energy markets in 2008 are reviewed. It was a very special year of high volatility, in which the worst global economic contraction since World War II started. Analysis shows that it was the year in which non-OECD energy consumption became greater than OECD energy consumption for the first time. The study prompts a number of conclusions. Extreme situations do bring out what really matters. Energy is a capital intensive business with long lead times; demand for its products depends on the pace of economic growth. Cycles and price volatility are the norm reflecting our imperfect knowledge over long investment horizons. In 2008 we saw a sharp turn in the economic cycle and associated volatility in energy prices. The key to meeting the longer-term challenge is to manage through these ups and downs. In 2008, markets served global energy security well on the way up, and on the way down. And they served it better the more they were allowed to develop without interference.