The geopolitical crisis may trigger changes in energy strategies

Journal article

Whatever the eventual geopolitical consequences of the Ukraine–Russia crisis, it has already had a significant impact on the way both gas producers and their customers plan their respective futures. The event has been the catalyst for an intensifying debate over energy security – not just regionally between Europe and Russia but globally – and it is expected to eventually change the way gas is sold and transported. It is not that the crisis has thrown up any new issues or risks; most of the topics now grabbing energy market headlines have been known or subject to negotiation for years. But the events of the last few months do at least seem to have injected a greater sense of urgency to ‘get on with it’. Europe was not particularly concerned that 30 per cent of its gas came from Russia and Moscow voiced no worries than 80 per cent of its gas export revenues came from European customers. Now both are very focused on the concentration of risk and the contagion is spreading to others in a similar supply or customer dependency situation. Projects to rectify perceived supply and customer risk are likely to proceed at a faster pace than was expected only six months ago.

Authors: Weafer, C

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Oxford Institute for Energy Studies
• Journal: Oxford Energy Forum
• Issue: 97
• Pages: 5-7
• Publication date: 2014-09-22
• ISSN: 0959-7727
• Language: English
• Keywords: OIES