Global Coal Demand Hits Record as China's Power Mix Shifts

Global coal consumption reached a record high in 2025, according to the latest Statistical Review of World Energy, even as its use for power generation declined slightly. The data, reported by OilPrice.com, shows consumption rose 0.7% to 166.0 exajoules last year, while coal-fired power production fell 0.3% to 10,511 terawatt-hours.

The divergence highlights coal's critical role beyond electricity, in steelmaking, cement production, and other industrial processes. The record consumption also reflects a stark geographic divide: coal use is declining across much of the developed world but remains deeply embedded in Asia's industrial economy. Asia Pacific accounted for 83.2% of global coal use in 2025, with China alone consuming 55.6% of the world's total and India another 13.9%.

Despite the absolute record, coal's share of the global energy mix slipped from 27.9% in 2024 to 27.7% in 2025, as total energy supply grew faster at 1.4%. Renewable energy supply, by contrast, increased by nearly 10% in 2025, far outpacing coal's growth.

A separate report from China signals a significant shift within the world's largest coal consumer. Chinese authorities stated that installed solar power capacity, which reached 1,274 gigawatts (GW) by the end of June, is set to overtake coal-fired capacity (1,275 GW) as early as this quarter. Furthermore, the share of coal in China's electricity output fell below 50% for the first time on record in the first half of 2026, averaging 49.7%, according to OilPrice.com.

"In the first half of 2026, China's total non-fossil energy power generation grew by 8.5% from a year earlier," said Hou Wenjie, director of the statistics and data intelligence department at the China Electricity Council. Renewable energy accounted for 41.2% of China's total electricity generation in that period.

Analysis for the Bakken: These global trends present a complex backdrop for Bakken crude oil. The persistent, record demand for coal—primarily for industrial processes in Asia—suggests continued robust global industrial activity, which supports demand for transportation fuels and petrochemical feedstocks derived from oil. However, the rapid expansion of renewable power capacity in China, the world's largest energy consumer, points to a accelerating energy transition that could dampen long-term growth in global oil demand. For Bakken operators, the data underscores that while near-term demand for hydrocarbons remains solid, driven by industrial growth in non-OECD nations, competitive pressure from alternative energy sources is intensifying. The industry's long-term viability will depend on its ability to compete on cost and carbon intensity as the global power mix evolves.