Fall in energy production in the Middle East in 2020
World energy production fell by 3.5% in 2020, after 3 years of steady growth (+2.4%/year)
The COVID-19 had a tremendous impact on global energy demand and hence on energy production. 2020 Key data for energy production are as follows: - Crude oil: -6.1% driven by the global fall in the demand for oil products (transport restrictions and lower industrial demand) that prompted the OPEC+ to cut crude oil production by 9.7 mb/d between May and July 2020. - Gas: -2.5% with a stagnation of US gas production, and a drop in Russia and most producing countries (excepted Australia, China, Iran and Saudi Arabia) - Coal: -4.5%, with growth in China (+1.4%) and India (+1.2%) offset by drops in most of producing countries (Indonesia, United States, Australia, Russia, and South Africa) - Electricity: -0.6%, with growth in China (+3.7%) and declines in most countries Energy production grew in China, India (coal production), Brazil (significant growth in oil production), and South Korea (nuclear, hydropower and renewable power generation). On the contrary, energy production fell in the United States (especially coal), in Russia (lower oil production), in Canada (fall in oil and gas production), in Indonesia (strong decline in coal and gas production) and in Australia (lower coal production) and it continued to decline at an accelerated pace in the EU (especially coal production in Germany and Poland). In the Middle East, energy production fell noticeably (mainly oil and gas production) as the global downturn reduced oil and gas demand, leading Saudi Arabia and other OPEC+ members to implement historic cuts in crude oil production in 2020. As well, energy production declined in Latin America (fall in coal production in Colombia and new production decrease in Venezuela), and in Africa (strong drops in Nigeria, Algeria and Egypt).
Iran exported 17 bcm of natural gas in the past year (March 2021-March 2022), according to the National Iranian Gas Company (NIGC), including 7.3 bcm to Iraq (43%) and 3.3 bcm to Turkey (19%). Around 98% of cities and 85% of villages in the country are connected to the natural gas transmission network. In 2020, Iran exported 11.3 bcm of natural gas and Iraq sourced 100% of its natural gas imports from Iran, totalling 5.7 bcm in 2020.
Greenhouse gas (GHG) emissions under the EU Emissions Trading System (EU ETS) rose by 7.3% in 2021, due to higher emissions from the power sector, industry and aviation; however, they remain below their 2019 levels.
India's crude oil production declined by 2.7% in the fiscal year 2021-2022 (April 2021 to March 2022) to 29.7 Mt, in line with the recent decrease in oil production due to ageing fields. Oil and Natural Gas Corporation (ONGC) produced 19.45 Mt of crude oil (-3.6%). With the economic recovery, refineries processed 242 Mt of crude oil in the fiscal year 2021-2022 (+9%), producing 254 Mt of petroleum products (+8.9%). In addition, natural gas output rose by 18.7% to 34 bcm in the fiscal year 2021-2022.
US greenhouse gas (GHG) emissions (including LULUCF) declined by 11% in 2020 to 5,222 MtCO2eq, i.e., 21% below 2005 levels, according to the United States Environmental Protection Agency. This was driven by an 11% decrease in CO2 emissions from fossil fuel combustion, primarily due to a 13% drop in transportation emissions driven by lower demand owing to the COVID-19 pandemic. In addition, power sector emissions also fell by 10%, reflecting both a slight decline in demand from the COVID-19 pandemic and a continued shift from coal to natural gas and renewables. In 2020, CO2 accounted for 79% of total emissions, followed by methane (11%), nitrous oxide (7%) and fluorinated gases (3%). Transport is the largest emitter sector (27%), followed by electricity (25%), industry (24%), commercial and residential (13%) and agriculture (11%).