Unintended consequences of the energy transition must be considered
Outlook 2022: The energy transition – the pendulum swings, with unintended consequences
Change can bring volatility. And there is significant change ahead
It has long been true that economic growth and energy demand are linked. In 2020, we saw the pendulum swing one way—global GDP down by almost 5pc, and oil demand down by 9pc in the year, as economic output and mobility was constrained. This also led to a 5.8pc decline in global emissions, according to the IEA, the largest decline since the Second World War. It is clear the pendulum has swung back the other way this year—with Covid-19 restrictions easing, mobility and economic activity increased. The result is higher GDP but also higher demand for fossil fuels. This has and will result in higher emissions globally, with much of the ‘progress’ last year being undone. Despite renewable capacity
Also in this section
10 March 2026
From Venezuela to Hormuz, the US—backed by the most powerful military force ever assembled—is redrawing not only oil and gas flows but also the global balance of energy power
10 March 2026
By shutting the Strait of Hormuz, Iran has cut exports of distillate-rich Middle Eastern crude, jet fuel and diesel, and is holding the energy market hostage
10 March 2026
Eni’s director for global gas and LNG portfolio, Cristian Signoretto, discusses how demand will respond to rising LNG supply, and how the company is expanding its own gas and LNG operations through disciplined, capital-efficient investments
9 March 2026
Petroleum Economist analysis sees increases in output from Saudi Arabia, Venezuela and Kazakhstan among others before region’s murky descent
