Energy is a pivotal category of commodities, with a profound impact on our daily lives. It affects the cost of virtually everything we consume, from groceries and clothing to the fuel in our cars and the heating and cooling of our homes, businesses, and institutions. In essence, energy is the lifeblood of our modern world, and without it, many essential aspects of our lives would be greatly affected.

The unit commonly used to measure energy quantities is the British thermal unit (Btu), which gauges the heat content of fuels. According to the U.S. Energy Information Administration (EIA), global energy consumption exceeds 575 quadrillion Btu annually and is projected to increase to 736 quadrillion Btu by 2040, marking a 28% rise.

To grasp the magnitude of these figures, we can compare them to fossil fuel consumption in the world’s largest economy, the United States. The U.S. annually consumes:

  • 7.2 billion barrels of petroleum (equivalent to 35.9 quadrillion Btu)
  • 27.5 trillion cubic feet of natural gas (equivalent to 28.4 quadrillion Btu)
  • 729.5 million short tons of coal (equivalent to 14.2 quadrillion Btu)

Yet, U.S. consumption of these fossil fuels represents only 13.6% of the total global energy consumption. In other words, the world’s energy consumption is staggering.

Types of Energy

The energy we utilize can be categorized into two main groups:

  1. Renewable Energy: Energy sources that can be easily replenished.
  2. Non-renewable Energy: Energy sources that cannot be replenished.

Why Energy Commodities Matter?

Energy commodities play a crucial role in our daily lives, as they influence the prices of goods and services, impact our environment, and drive economic growth. Understanding and effectively managing energy resources are essential for ensuring the sustainability and well-being of societies worldwide.

Ready to trade?

Opening an account is straight forward.

Apply today, you’ll be allocated a trader so you can start trading instantly.