Geopolitical Risk + Energy Transition + Climate Change = The Trifecta
BLUF Concepts introduced and amplified in the National Defense Industrial Strategy (NDIS) offer helpful frameworks for energy companies to reduce geopolitical risk. Adversarial capital, production diplomacy and friend-shoring each reflect a relevant attribute of the current global geopolitical situation. Why does this matter? The NDIS repeatedly illuminated how and why…
BLUF Korea, Japan, and China are the #1, #2 and #5 largest importers of US LNG. Ensuring Korea’s reliable supply of US LNG is critical to the country’s energy security. Japan and China are less reliant on US LNG. Why does this matter? All points of exit for US…
BLUF Depending on their cargo, energy tankers use the Panamax or Neopanamax locks in different proportions. This variation influences how Panama Canal delays affect each segment. Chemical tankers, for example, almost exclusively use the Panamax locks, while liquified natural gas (LNG) tankers almost exclusively use the Neopanamax locks. Why…
BLUF The top 10 energy companies in the world are enormous and rival the size of countries. With their size, where and when they act – particularly during the energy transition – matters. Energy companies play an important role in the US’s ability to pursue the vision outlined in the…
BLUF While implementing the National Security Strategy, the government leverages instruments of national power to pursue objectives and engage throughout the world. Why does this matter? Whether or not energy companies realize it, they play an integral role in the US government’s ability to pursue the national vision outlined…
BLUF If you don’t understand what geopolitical risk means, allow Putin’s actions against commercial companies and nationalized industries to teach you. Since invading Ukraine in February 2022, Putin has done things “you just can’t do” and yet, he acted largely with impunity. Part of doing business internationally is overcoming…
BLUF Challenging the rules-based international order is a key feature of strategic competition. PRC’s new map shows an example of Chairman Xi’s efforts to define the world to his advantage, despite international norms. The map’s significance lies in the leader’s mindset, not the unoriginal claims. Like “build it and…
Let’s start with the bottom-line up front (BLUF): Energy companies must incorporate geopolitical risk into operations and investments to increase resiliency and propagate the energy transition. The developing and complex global geopolitical situation affects energy companies in ways it never has before. These geopolitical risks are also likely to affect…
