Energy Transition Vs. Energy Security

Unless you’ve been hiding under a rock, you’ve noticed that energy topics have been a supporting actor in coverage about Russia’s invasion of Ukraine. 

Oil prices, the natural gas supply, and a fire at a nuclear reactor—just to name a few. 

The National interest

Energy-related stocks have been all over the place since Putin initiated troops moving into Ukraine. Russia has weaponized its oil and gas supply to Europe and the U.S., and energy assets (e.g., power grids, nuclear plants, etc.) have become even bigger physical  and cybersecurity targets. 

The U.S., Canada, and other countries are working to export natural gas to Europe to help maintain supply in the short term as prices for Europeans skyrocket. But many experts are wary of increasing fossil fuel production as a response to the conflict and the impact it might have on the transition to greener energy sources.

Energy and the environment played a prominent role in Biden’s first State of the Union address, pushing the clean energy transition as a way to both reduce the effects of a warming climate and to decrease reliance on fossil fuels as prices fluctuate widely. 

There’s a short-term game of tug-of-war between the energy transition and energy security. 

Remember, the transition won’t be linear. It’s not a zero-sum game, but hopefully a net-zero game.