According to BP’s annual??Statistical Review of World Energy, published on June 8th, 2010’s energy consumption was up by 5.6% from 2009. Oil consumption which accounts for 34% of the world’s primary energy by BP’s calculations rose by 3.1%. Coal, at 30% the number two fuel, was up by 7.6%, growing faster than at any time since 2003. Natural gas consumption, which contributes 24%, was up by 7.4%, the biggest annual growth since 1984.
It’s interesting to note that China’s total energy consumption rose from 11% in 2000 to 20% of the world energy consumption surpassing the US to become the largest energy consumer!
Where did all of China’s growth in demand come from? Surprisingly, it wasn’t from oil, it was from coal which made up more than 48% of world coal use up from a significant 30% in the year 2000.
The good news with the growth in usage is that it reflects a rebounding global economy while the bad news is the obvious increase in carbon emissions. Whether we end up double dipping or not in the short term, there is a strong case for investing in oil and gas for the long term as sooner or later the stock price of these producers will have to reflect the growing global energy consumption.
Economic roundup:
U.S. Is Nearing Even Worse Financial Crisis: Jim Rogers
Fed Became Second-Largest Treasury Investor in Q1
High U.S. Unemployment Forecast to Persist for Years
Treasuries Rise on Speculation of Maintained Stimulus
It’s Bubble Time as Asia Braces for Fed’s QE3
Weekly blog roundup:
Three Reasons Why I Squirrel Away My Money @Invest It Wisely
Dividend Yield or Growth or both? @ The Passive Income Earner.
Playing With Ex-Dividend Date @The Dividend Guy Blog
youngandthrifty June 2011 Net Worth Update @Young &Thrifty
401k Fees @DIY Investor
The Safety of Short Term Bonds@Dividend Ninja
Coca Cola (KO) Dividend Stock Analysis @Dividend Monk
How To Build Your Fortune While Others Are Fearful @Buy Life Buffet
Have a Great Weekend!
