With the world paused on the edge of more political unrest and human tragedy in the middle east, we have been analysing the impact of this unrest on the energy sector.
The Hamas attacks on Israel are possible to have oil market repercussions if the conflict widens to include Hezbollah or Iran. There are likely to be calls to ratchet up sanctions enforcement on Iranian oil exports, which have increased in the past six months. Normalisation talks between Saudi Arabia and Israel could be suspended amid deepening Israel-Palestinian conflict, which will in turn close off an important avenue of U.S.-Saudi cooperation.
The Middle East is a crucial player in the global energy market. There are fears that conflict in the region could spread to neighbouring regions, potentially involving a disruption of oil supplies, which could further affect energy prices globally. This in addition to the sharp increase in energy prices and significant volatility in supply after the Ukraine conflict, compound the potential outcome.
It is with huge sadness we watch the human impact of the unfolding events, and this reminds us that for both us, and our customers, energy availability and price stability are likely to become of increasing concern.
We wrote back in January 2023 in our blog ‘Decoupling your business growth from energy cost’ about the importance of predictable and constant energy costs. Now more than ever, generating energy at predictable, stable costs and conserving the energy you use could become a business priority.
Each business has complexity:
· Type of real estate
· Freehold or leasehold
· Type/size of site
· Energy consumption breakdown
· Projected demands
· Manufacturing processes that use heat
· Heat as a by-product that can be captured.
· Other waste that can be captured
That’s why our clients want to work with us – understanding where you are now, what your demands will be and what opportunities you have.
With current world political events, extreme weather events and the push towards reducing global warming, the cost and supply of energy is unlikely to get any better, long term. As such, all organisations should be looking for ways to improve efficiencies and reduce energy consumption and generate own energy on-site, where possible and practical.