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World Energy Council: Energy price volatility is the new normal

Hydrocarbon Engineering,

According to the latest World Energy Issues Monitor published by the World Energy Council, energy leader see price volatility and the future of the climate framework as their top critical uncertainties.

The 7th edition of the Council’s annual survey of over 1000 energy leaders including ministers and CEOs from nearly 80 countries concludes that the uncertain impact of volatile energy and commodity prices, first highlighted as an emerging priority by the Council in 2014, has become the number one issue worldwide. Energy leaders are particularly worried about the plunge in oil price to its five year low. They are also kept busy by the continual reduction in the cost of renewables, which has resulted in their improving share in the energy mix, while also putting additional strain on the wider energy system especially in regions without viable storage technologies.

Christoph Frei, World Energy Council’s Secretary General, said: “High price volatility has become the new normal facing energy leaders and this is the context in which we expect them to take investment decisions at an unprecedented scale. The unprecedented uncertainty, the need to redefine infrastructure resilience in response to emerging risks, the expectation of changing market designs and evolving business models, as well as the changing geopolitical balance has placed energy among the top strategic issues globally for at least the next decade.

Climate framework is perceived as the next most critical uncertainty ahead of a global climate agreement being reached at the Conference of the Parties meeting (COP-21) in Paris at the end of this year. This issue – which could spell the presence or absence of a meaningful carbon price – has been a top critical uncertainty since the first World Energy Issues Monitor in 2009.

Adapted from a press release by Emma McAleavey.

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