Fossil Fuels Supplied 86% of Global Energy in 2025: REPORT

Report Highlights

#1 – Global energy demand hit a new record: Total energy supply (TES) rose 1.7% in 2025 and exceeded 600 exajoules, continuing the long-term trend of rising energy demand ^[1][2]

#2 – Fossil fuels remained the world’s dominant energy source: Despite major growth in renewables, fossil fuels accounted for ~86% of global TES in 2025, down slightly from ~87% in 2024 ^[1][2]

#3 – Oil demand continued to rise: Global oil consumption increased by 1.3% to 103 million barrels per day in 2025 ^[1][2]

#4 – Non-OECD demand rises more: In non-OECD countries, oil demand grew 2%, while OECD growth slowed to 0.4% in 2025 on a year-over-year basis ^[1][2]

#5 – Natural gas demand also increased: Global natural gas consumption grew by 1.6% year-over-year, with demand growth concentrated in Europe, the Middle East and North America ^[1][2]

#6 – Major economies reliant on natural gas imports: Both India and Europe were heavily reliant on natural gas imports to meet ~50% of their supply needs, and China for more than 33% ^[1][2]

#7 – Coal use increased globally: Coal consumption rose by 0.7% in 2025, with regional differences across major consuming markets ^[1][2]

#8 – Renewables grew quickly: Renewables were the largest source of total energy supply growth for the first time outside of a recession, increasing by 3.3 EJ y/y, with solar accounting for 71% of that renewable increase ^[1][2]

#9 – Electricity demand grew faster than overall energy demand: Global electricity demand rose 3% in 2025, compared to the 1.7% increase in total energy supply ^[1][2]

#10 – Energy security remains a major global issue: Major demand centres remain highly dependent on imported energy, with India importing 86% of its oil consumption, Europe importing 75%, and China importing 73% ^[1][2]

The World Still Runs on Oil and Natural Gas

This report confirms what most Canadians already understand: the world is not moving away from oil and natural gas any time soon.

Despite frequent claims that the world is quickly moving away from fossil fuels, the data shows oil and natural gas remain essential to meeting growing global demand.

Oil remains essential for transportation, aviation, heavy industry, petrochemicals, mining, agriculture, and manufacturing. Natural gas is critical for electricity generation, heating, fertilizer production, and industrial use, and is increasingly exported in liquid form (LNG) to energy-hungry markets worldwide. In fact, global LNG demand is projected to grow by 65% by 2050, according to the latest industry outlook ^[3].

Canada needs an all-of-the-above approach to energy security and economic prosperity. We can support oil, natural gas, and renewables simultaneously while building a stronger, more secure future.

Why This Matters for Canada

Canada has what the world needs. We have oil, natural gas, coal, uranium, critical minerals, skilled workers, technological expertise, and strong regulatory systems. We also have better access to global markets if we choose to build the infrastructure needed to reach them. And in an increasingly uncertain world, as in the words of Japan’s Ambassador Kanji Yamanouchi, “Canada has the trust” to be a safe, reliable, go-to energy supplier.

That is why G7 support for more Canadian oil and natural gas matters. Last month, G7 leaders issued a joint statement in France, highlighting the urgent need for the diversification of energy supplies:

"We commit to accelerate the diversification of energy supply routes in order to reduce global vulnerability to the Strait of Hormuz and to increase our energy stocks. We welcome the potential for Canada to deliver significant additional capacity to global markets in the coming years."

The economic opportunity for Canadians to develop more of our abundant energy resources is real. But we need to act now, and not let another chance pass us by.

There’s No Time to Slow Down

Recent announcements on pipelines, export terminals, and regulatory reform are welcome news. But epic headlines alone do not get major projects past the finish line.

Building major infrastructure takes persistence, public support, and sustained effort. Canadians need to understand the real benefits of natural resource development and why it matters to our economy, our communities, and our future.

Now more than ever, Canadians must back their energy sector and keep sharing positive, fact-based, non-partisan messages about the value of our natural resources.

Now is the time to build. Now is the time to diversify. Now is the time to take action. Let's go!

Maximizing the value of our natural resources is the smart thing to do. pic.twitter.com/BYA0JIa1f7

— Canada Action (@CanadaAction) July 12, 2026

SOURCES:

_{1 - https://www.energyinst.org/statistical-review}

_{2 - https://ember-energy.org/latest-insights/energy-institute-statistical-review-of-world-energy/}

_{3 - https://www.shell.com/news-and-insights/newsroom/news-and-media-releases/2026/lng-outlook-2026.html}