As globalization continues to dissolve borders, nations are becoming more and
more energy interdependent. Yet the majority of current hydrocarbon resources
are concentrated in just five countries. While
this has long been the case, what is different now is that more stable sources
of supply—those in the U.S., Canada and Western Europe—are for the
most part mature resource basins, declining in production.
In the news today, we hear about uncertainties around the world. Even if disruptions
do not affect supply in any meaningful way over the long-term, they do create
a psychological risk factor, which can lead to short-term volatility in energy
markets, and a reluctance to invest in those regions.
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