Hormuz disruption will lead to ‘structural shift’, Shell Foundation CEO says
The disruption will result in “a permanent shift to energy that is much more reliable,” Jonathan Berman said at Semafor’s The Next 3 Billion.
Shell Foundation CEO Jonathan Berman has warned that disruption to the Strait of Hormuz will lead to a "structural shift" in the energy consumption of billions of people who are still disconnected from the digital economy. He estimated that it will take around three years for things to return to some form of normalcy. While some stakeholders may weather the disruption, Berman cautioned that those with the least access to the digital economy will not be able to.
"They will make an adjustment," he stated, resulting in a "permanent shift to energy that is much more reliable, much closer to them." The impact of the Iran war has been particularly severe for areas that heavily rely on energy imports, particularly East Asia and sub-Saharan Africa, where farmers have been grappling with the consequences of increasing fertilizer and fuel costs.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
