The commercial extraction of oil began in the 19th century in the US and Russia, initially for kerosene production. The introduction of the internal combustion engine increased oil demand. The Spindletop discovery in 1901 accelerated US oil production. OPEC’s formation in 1960 and market conditions led to price volatility, with consumption rising steadily in the 2000s.
Oil and natural gas make up 55% of global energy use, with the top 350 companies holding a combined market cap of $7.2 trillion, comprising 7% of the world’s largest companies. State-owned enterprises control 90% of the world’s crude oil reserves. Just 8 companies hold 50% of the market cap.
Natural gas, once a byproduct, now comprises a quarter of global energy. Advancements in infrastructure and technology, along with increasing demand, have propelled its rise. However, its contributions to greenhouse gases and geopolitical tensions present challenges for sustainability and climate change goals.
The use of coal has a long history, from its early adoption in Ancient China to the pivotal role it played in the Industrial Revolution and global energy systems. While some countries are moving away from coal due to environmental concerns, it remains a significant part of the energy landscape.
Hydropower, the world’s largest source of renewable, low-carbon electricity, faces a significant gender gap. Women hold only a quarter of jobs globally, mainly in non-technical roles. Factors hindering women include a lack of STEM skills, limited awareness, inadequate female role models, and managerial bias. Improved family-friendly policies and female inclusion in policymaking are required for industry advancement.
As of January 2023, 575 utility-scale biopower plants were operational globally, with a total capacity of over 29,000 MW, less than 0.5% of worldwide power generation. An additional 6,000 MW are under construction. China is believed to significantly underreport its true biopower capacity, perhaps as high as 22,000 MW, primarily from agricultural residues and waste-to-energy facilities. Brazil, another major player, relies largely on sugarcane byproducts.
The use of biomass by humans can be traced back at least 1 million years to the controlled use of fire. However, the generation of electricity from biomass, known as biopower, is a more recent development. One of the earliest biopower plants was the São José da Estiva power station in Brazil, which began operating in 1900.
From 1900 to 2022, global electricity generation grew remarkably from 66.4 TWh to 29,165 TWh. Fossil fuels maintained a stable share of around 60% throughout this period, while renewables like wind and solar saw rapid growth from the 2000s. The 1960s saw a rise in oil power plants, but energy price shocks in the 1970s shifted focus to natural gas and nuclear generation, with significant investments in gas power plants from the 2000s onward.
Throughout history, humans relied on their own muscles and later utilized draft animals and machines to perform physical tasks. The transformative impact of waterwheels, windmills, and the steam engine marked significant milestones in human energy history. Now, the transition to clean energy is crucial to mitigate the environmental impact and shape a sustainable future.
The world energy system is experiencing seismic shifts, with a rapid expansion of low-carbon fuels and energy efficiency. However, fossil fuels still dominate investments despite the need to reduce greenhouse gas emissions. Different countries prioritize energy RD&D in diverse ways, and state-owned enterprises play a significant role.