Ukraine War and five lasting changes for the energy sector

The war in Ukraine is creating geopolitical, social, and economic disruption in the energy sector and beyond, just as the world is beginning to recover from the worst of the Covid-19 pandemic. In the energy sector, it is compounding the trilemma of security, affordability, and sustainability. Increasing sanctions on Russia’s energy exports and moves to reduce dependence, notably by the EU, are limiting access to a previously reliable and low-cost global energy source, and the ripple effects could be felt in the form of higher costs of living and of doing business. There will also be implications for the energy transition. In this Marakon Commentary, Rod Davies and Quan Li outline five potentially lasting changes the energy sector could encounter and that companies and investors should account for.