Coal news and updates

Global coal demand to taper down over 20 yrs

February 19: Global coal consumption growth is expected to taper down to just 0.8% per annum between 2013 and 2035, according to British Petroleum (BP)’s Energy Outlook 2035.

Earlier, BP had forecast in 2014 that coal consumption would grow at 1.1% between 2012 and 2035.

Both the forecast by BP, ie, in 2014 and in 2015, which are strictly not comparable because of different time frames, indicate slow growth in coal demand in OECD countries and rising consumption in other countries.

BP’s Energy Outlook predicted a rise in consumption by non-OECD nations of 1.1 billion tons of oil equivalent (Btoe) by 2035, offsetting a 0.4 Btoe drop in OECD demand.

According to the outlook, China will continue to lead consumption growth, although the rate will decline to 0.8% per year in 2013-35 from 8.3% per year in 2000-13 with renewable and nuclear energy gaining market share.

It said the steepest decline in OECD consumption will come from the US at 220 million tons oil equivalent (Mtoe) and the EU with 150 Mtoe due to stricter environmental policies and ample gas supplies that will encourage the use of gas instead of coal.

The BP study envisages that fossils fuels will continue to provide to most of the world’s energy needs, meeting two-thirds of the increase in energy demand until 2035, but suggested that the mix will shift with renewables and unconventional fossil fuels taking a larger share.

It also suggested that gas will become the fastest-growing fossil fuel, meeting as much of the increase in demand as coal and oil combined in the next 20 years.