MRC -- China and India are burning record amounts of fossil fuels this year, even as they also install record renewable power generation capacity, highlighting the slow pace and enormous inertia to be overcome in the energy transition, said Reuters.
Both countries are experiencing rapid growth in energy use for services such as air conditioning, heating, cooking, lighting, power and transport as they try to raise living standards closer to those in the advanced economies. Growing demand for energy services is so vast fossil fuels and renewable energy sources are acting as complements rather than substitutes, ensuring consumption from both is increasing simultaneously.
In effect, both countries are pursuing an “all of the above” approach to economic development and energy security, similar to the one advocated by then-U.S. President Barack Obama in his state-of-the-union address in 2014.
In every historical case, the transition from a pre-modern agricultural economy to a modern urban and industrial one has been accompanied by a huge increase in the consumption of energy. Increased consumption provides more labor saving, higher wages, more comfort, more entertainment and more opportunity for travel to visit family and see the world.
If they follow the usual pattern, both China and India are likely to consume a lot more energy services in the next few decades as their populations aspire to reach the same living standards as North America and Europe. In 2022, the populations of China (1.43 billion) and India (1.42 billion) were each similar to the total for countries in the Organisation for Economic Cooperation and Development (OECD) (1.38 billion).
But total primary energy consumption in China (159 exajoules) and India (36 exajoules) was far lower than in the OECD (234 exajoules). Each person in China consumed only 66% of the energy as their counterparts in the OECD and in India the figure was just 15%.
We remind, Litasco, a trading arm of Russia's No.2 oil producer Lukoil, said that it had not received any offer for its refinery in Bulgaria and there were no talks to sell it, amid mounting pressure from Bulgarian authorities. Lukoil has already sold its oil refinery on the Italian island of Sicily, ISAB, to Cypriot private equity firm G.O.I. Energy. Although Lukoil has not directly been targeted by Western sanctions on Russia, the ISAB refinery was affected by an embargo on Russian crude oil as banks were reluctant to finance procurement for a Russia-related company.