The Russo-Ukraine war has spurred a vast and sustained increase in energy prices and threatens possibly severe shortages of heating fuel this winter in Europe. The United States, while committed as a matter of policy to a clean energy transition, is nevertheless pressing various global producers to ramp up production of oil and gas. But the newly released annual World Energy Outlook report from the International Energy Agency suggests these present crises mask a more profound and lasting impact.
In short, the Ukraine war looks likely to become an inflection point accelerating the global energy transition. As the energy sector publication Energy Intelligence summarizes the report, the 2022 crisis is driving three main effects: “an accelerated energy transition, the end of Russia as the world’s pre-eminent fossil fuel power costing Moscow some $1 trillion in revenues to 2030, and an end to what has been a golden age for gas.”
You can read the executive summary of the report here.