Energy Markets And Security Risks

John Saucer, Vice President of Research and Analysis at Mobius Risk Group participates in Risk Roundup to discuss Global Energy Markets and...

John Saucer, Vice President of Research and Analysis at Mobius Risk Group participates in Risk Roundup to discuss Global Energy Markets and Security Risks.

Energy Markets and Security Risks

When we look at the advances in energy technology — especially in oil and gas, renewables, nuclear, and other emerging sectors, there is clear and visible evidence that advances in technology have changed the geopolitics of the energy industry dramatically and rapidly. It is due to the advances in energy technology that nations have now made a convincing move from an era of energy resource scarcity to an era of energy resource abundance. As a result, the geographical concentration of energy resources is now replaced with the universality of its access, causing energy markets and security risks.

However, the most important development in the global energy markets is perhaps the weakening of oil and gas monopoly–as oil and gas do not hold the monopoly power anymore. This is mainly because of the stiff competition between shale, oil, renewables, nuclear and other sectors of energy that is intensifying and becoming very rewarding to consumers.

Having said that, the rapidly changing geopolitics of energy security is still a bitter reminder that the supposedly golden age of energy security, where each nation will have the ability to secure affordable, reliable, and sustainable energy supplies, to maintain their respective nation’s power requirement is still more of an illusion!

Even today, in a digital global age, “energy security” is a complex challenge. So the question that comes to mind is “Are each nation’s energy security challenges the same”? Perhaps not, as global energy security challenges are very unique and very different for each and every nation.

So when we evaluate “energy security” in a digital global age, the biggest obstacle to energy security is not a lack of energy resources; there is plenty of energy (both fossil and non-fossil) resources all across nations. It is the policy choices that nations make, and how they manage their security risks that have always impacted and will always impact the energy security of each nation, not only today but also in the coming tomorrow. Time is now to talk about energy markets and security risks.

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About the Guest

John is the Vice President of Research and Analysis at Mobius Risk Group.

His research focuses on commodity markets, derivatives, fundamental research, risk and discretionary portfolio management, global energy markets, trading, and risk management.