Energy sector: outlook and opportunities
The recent energy crisis has highlighted our economies' dependence on energy resources. With fossil fuels becoming less available, and a necessary transition to more decarbonised alternatives, could tomorrow's energy not become more expensive and less certain in availability?
Selected excerpts from the new episode of Coface's podcast Trade Talk, with Jean-Christophe Caffet, Coface's chief economist and Marc-Antoine Eyl-Mazzega, Director of the Energy & Climate Center at IFRI.
The podcast highlights the following points:
-
Despite the Ukrainian conflict, Europe avoided gas supply disruptions during winter due to high temperatures, efficient energy use, and production cuts.
-
China's zero Covid policy ensured Liquified Natural Gas (LNG) supplies, resulting in high gas stocks for the upcoming winter.
-
Europe quickly adapted to interruptions in gas flows from Russia by establishing a West-East system and leasing floating regasification facilities in Germany.
-
Increased LNG imports are expected with China's economic reopening and geopolitical rapprochement, reducing concerns over supply disruptions.
-
The oil market remains tight due to underinvestment and limited shale oil production, potentially leading to rising oil prices and inflationary pressures.
-
Energy plays a significant role in inflation, requiring investments in green and decarbonized energies.
-
Emerging countries and Europe face challenges in energy supply, necessitating attention to strategic issues and industrial policy revival to avoid job losses and vulnerability to geopolitical shocks.