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July 29, 2022
Supply Chain Digest Flagship Newsletter


This Week in SCDigest

bullet The State of Global Energy 2022 bullet SCDigest On-Target e-Magazine
bullet Supply Chain Graphic & by the Numbers for the Week bullet New Stock Index

New Chain Cartoon Caption Contest!

bullet Trivia      bullet Feedback
bullet New Expert Column bullet On Demand Videocasts




New White Paper:


Understanding WMS in the Cloud


Lessons Learned from Dozens of Cloud WMS Implementations




first thought


Supply Chain Graphic
of the Week


Adding New Components to the Suppy Chain Model

This Week's Supply Chain Numbers

Consumer Packaged Good Companies Raising Prices Big Time
Walmart Canada Launching 60-Foot Trailers
Start-Up Finishes Meals Curbside
Natural Gas Prices at Record Levels


Show Us Your Supply Chain Wit!


 This Week's SCDigest OnTarget Newsletter

Cartoon, Top SCDigest Stories of the Week


Six Ways Supply Chains Can Transform Packaging
These Trends Will Become Even More Important as Disruption Continues in the Packaging Segment


Linda Dunn

Director, Georgetown University's School of Continuing Studies

What company has the largest private fleet in the US?
Answer Found at the
Bottom of the Page


The State of Global Energy 2022

I looked forward every year to the BP Statistical Review of World Energy, released by the company each year in late June. The review is a sort of almanac of all matter of energy related data, now in its 71st year, and as always it is quite an interesting and educational read.

The report is full of informtion on energy production and consumption. Energy of course is at the heart of supply chain in many ways, and central to our lives. A world of relatively cheap, abundant energy would bring prosperity and more income equality to much of the world.



Renewable consumption rose nicely, and reached about a 7% share of consumption - steady progress but still a very small share of the energy pie.

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High energy prices have the opposite effect, as we learned in the 1970s, again in 2008 and now hear again in late 2021 and so far in 2022.

Energy costs can have a major impact on a variety of supply chain decisions, including network design and how to optimally navigate the tradeoff curve between inventory and transportation costs.

The report is focused on data from 2021, but of course a lot has changed this year, including soaring (for while) oil prices, and now ecord high natural gas prices as Russia holds back supply to Germany and perhaps other parts of Europe.


In an introduction to the report, BP chief economist Spencer Dale writes "The challenges and uncertainties facing the global energy system are at their greatest for almost 50 years, since the time of the last great energy shocks of the 1970s."


Switching gears, consistent with BP's exteme emphasis on climate chang in recent years, Dale adds that "Considerable progress has been made in sovereign pledges to achieve net zero, but those growing ambitions have yet to translate into tangible progress on the ground."

More on that in a moment.

The headline news from the report is that primary energy consumption grew a robust 6% in 2021, after falling 4.5% last year due to the economic impact of the pandemic. But the growth in 2021 was much lower, just 1%, versus the pre-pandemc year of 2019.


The report also says carbon emissions from energy rose by a surprising 5.7%.


That is more than global GDP growth, and just under the 6% gain in overall fuel consumption, indicating fuel sources were not materially changed. 


Illustrating that point. below you will find my favorite chart from the report each year, nicely summarizing global energy consumption from 1995 through 2021/ by energy source:



Source: BP


As can be seen, change is slow. Oil's share of energy consumption fell again, but it retains the top spot with about a 32% share. Coal's share reversed course and actually rose a bit in 2020 and 2021 after four years of decline. It still, however, represents more than 25% of global energy consumption. Coal usage increased in China and India, but fell most other places.


Renewable consumption rose nicely, and reached about a 7% share of consumption - steady progress but still a very small share of the energy pie. However, renewabled accounted for over half of the increase in global power generation over the past two years.


Other interesting data points from the report include the following:


• Oil consumption increased by 5.3 million barrels per day (b/d) in 2021 but remained 3.7 million b/d below 2019 levels.


China and India accounted for over 70% of the growth in coal demand in 2021.


Both Europe and North America showed an increase in coal consumption in 2021 after nearly 10 years of back-toback declines.


Coal remained the dominant fuel specifically for power/electricity generation in 2021, with its share increasing to 36%, up from 35.1% in 2020.


The share of renewables in global power generation continued to increase, up to 13%.


China also remained the main driver of solar and wind capacity growth last year, accounting for about 36% and 40% of the global capacity additions.


Natural gas' share in primary energy in 2021 was unchanged from the previous year at 24%


Natural gas prices quadrupled in Europe, tripled in Asia, and doubled in the US in 2021.


Good stuff. The full BP report is available here" Statistical Review of World Energy 2022


Any reaction to the BP report data? Let us know your thought at the Feedback section below.

See as Web page/Printable Version

On Demand Videocast:

Understanding Distributed Order Management

Highlights from the New "Little Book of Distributed Order Management"

In this outstanding Videocast, we'll discuss DOM, based on the new Little Book of Distributed Order Management, written by our two Videocast presenters.

Featuring Dan Gilmore, Editor along with Satish Kumar, VP Client Services, Softeon

Now Available On Demand

On Demand Videocast:

The Grain Drain: Large-Scale Grain Port Terminal Optimization

The Constraints and Challenges of Planning and Implementing Port Operations

This videocast will provide a walkthrough of two ways to formulate a MIP, present an example port, and discuss port operations.

Featuring Dan Gilmore, Editor along with Dr. Evan Shellshear, Head of Analytics, Biarri.

Now Available On Demand

On Demand Videocast:

A Blueprint for WMS Implementation Success

If You Want a Successful WMS Project, You will Find the Blueprint in this Excellent Broadcast

This videocast lays out the keys to ensuring your WMS implementation goes smoothly, involves minimal pain, and accelerates time to value.

Featuring Dan Gilmore, Editor along with Todd Kovi of Radix Consulting and Dinesh Dongre of Softeon.

Now Available On Demand


Feedback will return next week.

What company has the largest private fleet in the US?

A: Pepsico, with over 10,000 vehicles in 2021

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