We live in an interesting energy climate. As nations look to lower their emissions, they are simultaneously facing the increasing energy demands of a growing global population. While geopolitics has played an influential role in the current energy situation, the roots of today’s market volatility and ensuing supply crunch run far deeper. However, as complex as the situation may seem, the solution may be simple.
As the International Energy Agency pointed out earlier this year: “Investment trends in recent years have contributed to the situation we see today.” Last November, I warned that underinvestment in the industry would inevitably lead to price hikes. For too long, the sector has not developed the resources that would enable it to respond to changes in supply routes and upticks in demand.
