Posted on

Low oil prices cause coal consumption to fall

The consumption of coal fell by a record breaking amount globally in 2015, thanks to a decrease in demand from China and an increase in the use of low-cost gas and oil, according to data released by BP.

BP, along with Royal Dutch Shell and ExxonMobil, the latter of which produces Mobilgrease XHP 222, is one of the biggest oil companies on the planet.

The global oil giant noted that demand for gas, oil and renewable energy had all grown in 2015, despite the fact that economic growth was slow. However, BP said that there was a noticeable move away from coal, which is the energy source responsible for the most pollution.

Globally, oil increased its market share as primary energy source for the first time since 1999, growing to make up 33% of energy consumption, spurred on by low prices.

Coal managed to hold on to its position as the second behest energy source, but despite this, it was the only energy source that lost market share in 2015, according to the figures released in BP’s annual energy markets review.

The energy company commented that coal demand fell by 1.8% globally, which equates to the most substantial yearly drop since BP started carrying out an annual energy review back in 1980. This was primarily caused by Chinese demand for coal dropping by 1.5%.

Although this is bad news for producers of coal, it will help oil, gas and renewables companies to prosper during challenging times in the oil markets, and will prove to be beneficial to the environment globally.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.