The art of managing energy security risks

Countries thus far realise their energy security predominantly with energy policies (e.g., diversifying the energy mix and suppliers) and their energy security risk instruments mostly address the risk of shortterm supply disruptions. Lack of commercially viable sustainable energies and a renewed concentration of oil and gas supply in the future will reduce the effectiveness of traditional energy policies. Before sustainable energies become widely available, consumer countries are likely to experience increased competition for diversified oil and gas supplies. At the same time, geopolitical enmity shows that energy security will become firmly integrated in the foreign and security policies of a nation. In fact, the current risk landscape is determined by geopolitical rivalry over control of and access to energy-rich regions and by regional risks arising from politico-economic instabilities.