Energy depends on global supply chains, international cooperation, and the rule of law. Just a few years ago, all of that could be taken largely for granted, allowing most executives to focus on execution. But chaos, as Guterres described it, threatens all of those things and makes geopolitics an urgent concern. The Iran war and the crisis at the Strait of Hormuz is just the start.
The system that emerges from this moment is impossible to predict, but it’s safe to expect a few bedrock assumptions to change. After decades where efficiency has been prioritized above everything else, countries and companies may be increasingly willing to pay a premium for both locally sourced resources and redundancy. And, while energy markets have always been subject to government influence, the pressure on public officials to create policies that prioritize security over efficiency will only grow.
“Every nation should be looking at energy supply, energy security, food supply, food security,” Jamie Dimon, the CEO of JPMorgan Chase, told me last week, ”in addition to military security.”
Read the full article here
