Global Supply Chain. Raw material. Manufacture. Export.
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“The Inflation Reduction Act must spur virtuous competition, not vicious protectionism.“
https://www.imf.org/en/Publications/fandd/issues/2022/12/america-landmark-climate-law-bordoff
“The Inflation Reduction Act is the most significant piece of climate legislation in the history of the United States. It will deploy nearly $400 billion over the coming decade to slash carbon emissions. By lowering the cost of clean energy technologies, the law can accelerate their deployment not only at home but abroad. But to achieve its full climate potential, US diplomats and trade officials must now ensure that the large subsidies and domestic manufacturing requirements in the law spur the right mix of competition and cooperation from other countries, rather than feed the growing forces of protectionism that could stymie a clean energy transition.”
U.S. Trade conflict.
“Consider, for example, that the new climate law requires that electric vehicles be assembled in North America to qualify for the subsidies and that the batteries in them be made from components mined or processed in the US or its free-trade partners. Or that larger renewable energy subsidies are available if the projects use materials, such as steel and iron, sourced from domestic manufacturers. Or that its massive subsidies for hydrogen and ammonia made using renewable electricity (so-called green hydrogen) lower the delivered cost of such exported green fuels below that of competitors in the Middle East and Asia.”
https://oec.world/en/profile/world/wld#economic-complexity
China thriving global export sector puts them at the top hierarchy in the geopolitical sector.
Fossil fuels have been our predominant source of energy for over a century, and the world still extracts and consumes a colossal amount of coal, oil, and gas every year.
The Facts on Fossil Fuels.
In 2021, the world produced around 8 billion tonnes of coal, 4 billion tonnes of oil, and over 4 trillion cubic meters of natural gas.
Most of the coal is used to generate electricity for our homes and offices and has a key role in steel production. Similarly, natural gas is a large source of electricity and heat for industries and buildings. Oil is primarily used by the transportation sector, in addition to petrochemical manufacturing, heating, and other end uses.
Here’s a full breakdown of coal, oil, and gas production by country in 2021.
Coal Production
If all the coal produced in 2021 were arranged in a cube, it would measure 2,141 meters (2.1km) on each side—more than 2.5 times the height of the world’s tallest building.
China produced 50% or more than four billion tonnes of the world’s coal in 2021. It’s also the largest consumer of coal, accounting for 54% of coal consumption in 2021.
China ranks #1 in 2021 Coal Production. India is #2. Indonesia #3. USA ranks #4 in Coal production.
India is both the second largest producer and consumer of coal. Meanwhile, Indonesia is the world’s largest coal exporter, followed by Australia.
In the West, U.S. coal production was down 47% as compared to 2011 levels, and the descent is likely to continue with the clean energy transition.
Oil Production.
In 2021, the United States, Russia, and Saudi Arabia were the three largest crude oil producers, respectively.
OPEC countries, including Saudi Arabia, made up the largest share of production at 35% or 1.5 billion tonnes of oil.
U.S. oil production has seen significant growth since 2010. In 2021, the U.S. extracted 711 million tonnes of oil, more than double the 333 million tonnes produced in 2010.
Natural Gas Production
The world produced 4,036 billion cubic meters of natural gas in 2021. The above graphic converts that into an equivalent of seven billion cubic meters of liquefied natural gas (LNG) to visualize it on the same scale as oil and gas.
Here are the top 10 producers of natural gas in 2021:
The council’s most recent report forecasts that around half of the global energy system will still not be electrified by 2050, which would mark a blow to many governments’ net-zero pledges.
https://www.cnbc.com/2023/06/08/world-energy-council-world-energy-system-not-fit-for-purpose.html
The council’s most recent report forecasts that around half of the global energy system will still not be electrified by 2050, which would mark a blow to many governments’ net-zero pledges.
Yet the approach also runs the risk of protectionism triggering wider trade conflict. Unless properly managed, these trade risks could undermine the rapid transition to clean energy, not to mention the economy.
While they help build domestic industries and increase American influence over supply chains, such measures also risk alienating allies and sparking backlash. The European Union and South Korea have already indicated they may challenge the electric-vehicle restrictions, for example. EU Executive Vice President Frans Timmermans, who is responsible for Europe’s Green Deal, warned in September in remarks at Columbia University about the protectionist measures contained in the landmark US climate law.
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