Energy intensity is converging across the world

THE energy required to produce a unit of GDP is falling in most countries around the world. As countries industrialise, energy-intensive businesses make up a bigger share of the economy. Peaks generally correlate to the high point of heavy industry, before lighter industry and higher value-added businesses (such as services) begin to replace old-fashioned smokestack manufacturers. This often coincides with gains in energy efficiency, too. According to BP’s “Energy Outlook 2030”, published on January 19th, globalisation will lead to a similar level of “energy intensity” across the globe by 2030, despite wild divergence in the past, as energy is traded freely and consumption trends and technologies spread.