#energy-security

#energy-security

Governments in the Global South are among the least prepared to respond to the oil shock caused by the Iran war. As the blockade of the Strait of Hormuz drives the worst energy crunch in modern history, leading governments to scramble to unload their emergency oil stockpiles, developing countries are among the least prepared to mitigate the shock. Although surging fuel prices due to the fallout of the US-Israel war on Iran have impacted most of the world, import-reliant poorer countries are among the worst affected and the most lacking in energy reserves to cushion the blow.

Australia imports roughly 80 per cent of its refined fuel and holds the lowest fuel reserves of any member of the International Energy Agency, with only 36 days of petrol and 29 days of jet fuel. This situation was starkly highlighted when the Strait of Hormuz was closed, leading to a surge in Brent crude prices and exposing the existential nature of Australia's energy crisis.

Mairi McAllan stated that there should be more drilling in the North Sea, provided it is compatible with climate targets and necessary for energy security.

Chris Ong, Seatrium's CEO, sees the Iran conflict sharpening what specialists call the energy trilemma, or the trade-off between energy security, affordable supply, and environmental sustainability. "The situation is now even worse because of the destruction of supply, which is still not fully priced in," Ong says. "People don't understand; they have been swung between different stories every day."

Dale Vince stated, 'We can ban exports from the North Sea. China have done it,' emphasizing the need for prioritizing domestic consumption during fuel shortages.

Meloni met the Qatari leader to discuss the energy crisis due to the ongoing United States and Israeli war on Iran, emphasizing Italy's readiness to contribute to the rehabilitation of Qatari energy infrastructure.

Attempting to eke out the remaining oil and gas from the North Sea was not the answer to the challenges facing the UK. It will not bring down the price for consumers, nor will it deliver long-term energy security. The international markets will determine the price and destination; that is not energy independence.