Fossil fuels continue to dominant the global energy system.

Fossil fuels continue to dominate the global energy system, with fast-growing renewables adding to the overall energy mix rather than replacing them, according to the Energy Institute’s latest Statistical Review of World Energy, produced in collaboration with KPMG and Kearney

Wind and solar combined grew by over 18% in 2024, making them the fastest-growing areas of the energy system, with China responsible for 56% of new wind and solar additions. But global energy demand is rising even faster, with total fossil fuel use growing by just over 1% and oil remaining the largest source of energy, accounting for 34% of total global demand.

Crude oil demand remained flat in OECD countries, but rose 1% in non-OECD countries, with Africa and the Middle East the fastest-growing regions in terms of oil demand. The USA is the world’s largest oil producer, accounting for 20% of global production in 2024.

Global natural gas demand rose by 2.5% as gas markets rebalanced after the 2023 slump. Global natural gas production rose to 4,124 bcm with the largest producers being the US, Russia, Iran, and China, which has risen from being the world’s sixth largest gas producer to its fourth over the last 10 years.

This simultaneous growth in clean and conventional energy illustrates the structural, economic, and geopolitical barriers to achieving a truly coordinated global energy transition, the Energy Institute comments, noting the 1% rise in energy emissions to record levels.

Total energy supply rose by 2% to reach a new high of 592 EJ, with records reached across all forms of energy. At 4%, electricity demand growth continued to outpace total energy demand growth, an indicator that the age of electricity is not just emerging but is shaping a new global energy system.

Energy Institute president Andy Brown OBE FEI said, “This year’s data reflects a complex picture of the global energy transition. Electrification is accelerating, particularly across developing economies where access to modern energy is expanding rapidly. However, the pace of renewable deployment continues to be outstripped by overall demand growth, 60% of which was met by fossil fuels. The result is a fourth consecutive year of record emissions, highlighting the structural challenges in aligning global energy consumption with climate goals.”

Dr Nick Wayth CEng FEI, CEO of the Energy Institute highlighted China’s influence over global energy trends, as it expands renewable capacity alongside coal, gas and oil. “The scale and direction of China’s energy choices will be pivotal in determining whether the world can deliver a secure, affordable, and low-carbon energy future."

Dr Romain Debarre, partner and managing director Energy Transition Institute, Kearney stated: “Energy security, resource access, and technological sovereignty are now taking priority over climate goals. This year’s data reveals three trends that are shaping the energy landscape: energy use is rising, but patterns are shifting; electrification is rapidly accelerating; and the energy transition remains chaotic.

“We are witnessing the dangers of a disorderly transition and the cost of inaction in real time. We have the strategies, technologies, and know-how to deliver net zero with an integrated, secure, and people-centred approach. Now, we must move from promises to action, at scale and at speed.”

Wafa Jafri, lead of Energy and Natural Resources Strategy and Partner KPMG in the UK observed Europe’s slowing progress on renewables and growth in China and emerging markets. “What’s emerging is not a uniform transition, but a disorderly one.

“Leaders navigating this need to look beyond headlines and towards practical delivery, regional opportunity, and strategies built for resilience as all facets of the energy trilemma: affordability, security of supply and decarbonisation, compete for priority.”

OEG and Al Nasr strengthen Qatar links. (Image source: OEG)

Global energy solutions firm OEG has finalised an evergreen agreement with Al Nasr Holding Co. in Qatar to deepen its involvement in the nation’s oil and gas sector

Earlier this year, OEG joined forces with Venture Gulf Engineering (VGE) — a leading specialist in container manufacturing, testing and certification, and a subsidiary of Al Nasr Holding Co. — to support Qatar’s energy sector with ISO cryogenic tanks for the safe transportation of nitrogen (N₂), enhancing logistics capabilities in the region.

The latest agreement further reinforces the strategic partnership with VGE and enhances existing support for the oil and gas, petrochemical and industrial sectors in Qatar.

The alliance, which has grown from an initial fleet of 40 cargo carrying units to more than 3,000 assets strategically positioned throughout the region, demonstrates the robustness of the OEG and VGE partnership and the high level of trust driving its success, an OEG statement read.

“This agreement formalises the relationship between OEG and VGE in Qatar, as the country advances its oil and natural gas production capabilities, and will enable us to provide top-tier logistics equipment solutions that can meet the demands of the energy and industrial sectors,” said Chris Kleinhans, regional director for OEG’s logistics equipment division in the Middle East.

Kleinhans said that the new agreement with Al Nasr Holding Co. establishes a framework for driving the future growth of both OEG and VGE, that will positively impact the local economy and ensure seamless access to services for customers.

“Our shared strategic focus, to develop a sustainable business model in the region, is crucial to the long-term growth of the partnership.

“Our combined resources and expertise help us to meet the immediate needs of our customers and adapt to future challenges and opportunities, with a continued emphasis on innovation that is improving value and efficiency.”

Read more:

Shell forecasts 60% rise in LNG demand by 2040

Enermech secures Qatar contract extension

QatarEnergy launches enhanced ICV programme

Manufacturers can now use CONNECT with Databricks. (Image source: AVEVA)

AVEVA, a global leader in industrial software, has been named the 2025 Databricks Manufacturing ISV Partner of the Year. Announced at the annual Data + AI Summit, the recognition honours AVEVA’s outstanding contributions to data-driven innovation in the manufacturing sector.

Over the past year, AVEVA has partnered closely with Databricks to launch a pioneering integrative solution via its CONNECT industrial intelligence platform.

This collaboration redefines how industrial and enterprise data are unified, analysed, and actioned, solving a critical challenge in modern industry: converting fragmented OT and IT data into meaningful, trusted insights.

By combining the Databricks Data Intelligence Platform with CONNECT, users can securely integrate industrial and enterprise data in an open, scalable, and governed way, using Delta Sharing, Databricks’ open-source technology for cross-platform, cross-cloud live data sharing.

This enables advanced capabilities such as AI, machine learning, and real-time analytics to be applied to previously siloed data sets.

As a result, manufacturers can now use CONNECT with Databricks to drive smarter decision-making, predictive maintenance, demand forecasting, sustainability tracking, safety improvements, and enhanced operational efficiency, while reducing development time and costs, and accelerating time-to-value.

“At AVEVA, we’re proud to have established Databricks and Delta Sharing as key foundation-stones of our strategy for our industrial intelligence platform, CONNECT,” said Bry Dillon, SVP of Partners and Commercial Strategy at AVEVA.

“Together, we’re enabling our joint customers to access real-time insights, accelerate AI, and deliver tangible outcomes across the industrial landscape. Our partnership with Databricks marks a pivotal moment in the advancement of industrial AI. This collaboration presents a powerful opportunity to accelerate the deployment of AI-driven solutions and drive greater industry wide collaboration — capabilities that are needed for companies across the industrial sector to stay relevant, remain competitive, and build efficient, sustainable businesses of the future.

"We are thrilled to name AVEVA the 2025 Databricks Manufacturing ISV Partner of the Year," said Shiv Trisal, Global Manufacturing, Transportation & Energy GTM Leader at Databricks. "As more enterprises leverage data intelligence to solve challenges across the manufacturing and energy industries, AVEVA's partnership with Databricks is essential to helping organisations everywhere harness the full potential of their data."

Israeli strikes on Iran's oil field threaten global LNG supply

A number of top executives from the oil and gas industry have addressed the impact of the recent strikes conducted by Israel on Iranian territory, which was followed by a number of retaliatory strikes from Iran.

Shell CEO Wael Sawan spoke to CNBC a few weeks ago, stating that “The last 96 hours have been very concerning … both for the region but more broadly in terms of where the global energy system is going given the uncertainty and the backdrop that we see right now and the geopolitical volatility.”

Patrick Pouyanné, CEO of TotalEnergies expressed concerns about the safety of regional employees and the broader implications for global markets if oil installations are targeted. He noted TotalEnergies' significant operations in Iraq, Abu Dhabi, Qatar, and Saudi Arabia, emphasising the hope that further strikes would avoid oil infrastructure to prevent safety hazards and market disruptions.

Meanwhile, Amjad Bseisu, CEO of UK-based EnQuest, hoped that the conflict would be resolved quickly.

“It’s almost like every day we see something different but obviously this war between Israel and Iran is another step up,” Bseisu told CNBC.

“The quicker we can come to an end of this terrible conflict, the better for overall markets but I do think that the market is well supplied in the short to medium term.”

More recently though, it seems that companies are still measuring the impact of US involvement in the conflict.

Following the US strikes on Iranian nuclear facilities on 22 June, comments from oil and gas company executives specifically addressing these strikes have been rather limited.

However, some relevant statements and industry perspectives have emerged, focusing on the broader implications for energy markets and supply chains.

According to Jorge Leon, head of geopolitical analysis at Rystad Energy and a former OPEC official, "An oil price jump is expected."

Speaking to Reuters, Leon said that "Even in the absence of immediate retaliation, markets are likely to price in a higher geopolitical risk premium."

SEB analyst Ole Hvalbye told Reuters that global oil benchmark Brent crude could gain US$3 to US$5 per barrel when markets open. Ole Hansen, analyst at Saxo Bank, predicted a similar jump, placing crude’s opening at US$4 to $5 dollars higher.

A more worrying aspect is the closure of the Strait of Hormuz (SoH). After the US strikes, Iran’s parliament voted to close this shipping route, which could severely affect the global oil and gas supply.

The SoH is the world’s most important oil chokepoint, handling about 20-30% of global seaborne oil trade (roughly 20 million barrels per day flow through this narrow strip).

Meanwhile, approximately 25% of the world’s LNG exports pass through this strait, majority of which is exported by Qatar. 

Reuters reported that QatarEnergy had held talks with major energy companies last week. The report said that Saad Al Kaabi, who is QatarEnergy's CEO and Qatar's energy minister, urged companies to warn their respective governments (US and European countries) about this risk. These talks came after Israel struck an Iranian gas field, which it shares with Qatar.  

GCC states monitoring the situation

Iranian officials, for their part, have assured that no radioactive matter was leaked following the US strikes, and that the region is safe from nuclear radiation.

The Saudi Nuclear and Radiological Regulatory Commission (NRRC) confirmed this, stating that no radiological effects were detected in Saudi Arabia or other GCC countries.

The UAE’s nuclear authority Federal Authority for Nuclear Regulation (FANR), along with the IAEA, Kuwait's nuclear authority, and the General Secretariat of the Gulf Cooperation Council, all published similar statements.

Qatar’s foreign ministry spokesman Majed al-Ansari told a news conference, "We are monitoring this on a daily basis."