Global energy use reached an unprecedented milestone in 2025, highlighting both advances in clean energy and the continued dominance of fossil fuels, according to the 75th annual Statistical Review of World Energy. Experts at Rice University’s Baker Institute for Public Policy hosted a conversation the Review’s producer, the Energy Institute, July 29 to provide context and discuss the projected future of energy consumption.
One of the world’s most comprehensive collections of global energy data, the annual review produced by Energy Institute provides an overview of changing patterns in energy production, consumption, emissions and electrification. Since the report first appeared, global energy use has increased sixfold while the world economy has expanded fourteenfold. During the same period, average life expectancy has risen by roughly 50%, illustrating the close relationship between reliable energy supplies, economic development and improvements in living standards.
While renewable energy continues to grow at record rates, it was emphasized that rising global demand means fossil fuels remain central to meeting the world’s energy needs, creating increasingly difficult policy choices for governments around the world. Originally produced by BP, the review is now published by the Energy Institute in partnership with several international organizations including Ember, Kearney and KPMG.
This year’s report found that global primary energy supply grew by 1.7%, reaching 600 exajoules — a massive unit of energy where 1 exajoule is equal to one quintillion joules — for the first time in history. Although energy demand continued to grow in advanced economies, developing nations accounted for much of the increase. OECD countries recorded growth of 1.1% (largely due to strong U.S. growth), while non-OECD nations expanded by 2%, reflecting continued industrialization and population growth.
The world’s energy transition is not occurring through replacement alone but through addition, the panelists said. Rather than renewable energy simply replacing fossil fuels, many countries are increasing their use of both as overall demand continues to rise.
Oil production increased by 3.5% in 2025, considerably faster than oil consumption, which grew by 1.3%. The United States remained the world’s largest oil producer, increasing production by approximately 4%. Natural gas production also expanded by 1.6%, with the U.S. strengthening its position as the world’s leading exporter of liquefied natural gas after increasing exports by 27% to nearly 150 billion cubic meters annually. Amid growing concern about energy security amid the ongoing disruption of Middle Eastern oil and gas exports, the rising importance of the U.S. as an energy exporter is an important development.
Despite these gains, carbon emissions continued to increase. Energy-related greenhouse gas emissions grew 1.1%, reaching the equivalent of approximately 41 gigatons globally.
Another major theme was electrification — the growing use of electricity in transportation, heating, industry and digital technologies. China has emerged as the global leader in this transition with electricity now accounting for nearly 24% of its total energy supply, surpassing both the U.S. and Europe.
“In terms of how that global electricity growth was met, we reached an important milestone,” said Nick Wayth, chief executive of the Energy Institute. “Whether it’s an inflection point, we will see. But all of the growth globally in electricity, that 3% growth year-on-year, all of that was met by low carbon sources, and that’s the first time that’s happened outside of a financial crisis or COVID. So, a significant milestone. Of course, this is a backward looking report, but if we’re not at that tipping point, it is an indication that we are getting close to a tipping point. You can see 2024, where coal played a significant part on the grid, actually declining very slightly in 2025 on a global basis.”
The report also highlighted a rapidly emerging source of electricity demand: data centers. For the first time, the Statistical Review tracked electricity consumed by digital infrastructure supporting cloud computing and artificial intelligence.
Globally, data centers used approximately 788 terawatt-hours of electricity in 2025, representing 2.4% of worldwide electricity generation. The U.S. accounted for roughly 40% of that demand, where data centers now consume approximately 6.6% of national electricity generation. In several regional electricity markets, presenters noted, data centers already account for between 30 and 40% of electricity demand, with consumption continuing to grow by around 25% annually.
As global energy demand continues to reach new highs, the data presented in the Statistical Review suggests that the coming decades will be defined not only by how quickly clean energy expands but also by how effectively governments manage an increasingly interconnected and electricity-dependent global economy. The objective, freely-available data in the Statistical Review will remain critical in understanding
The Center for Energy Studies at the Baker Institute provides data-driven insights and analysis on the role of economics, policy and regulation in the performance and evolution of energy markets. Its third annual energy conference, “Energy, Technology and Grid Resilience,” takes place Aug. 20. The daylong, in-person event is free, but registration is required.