{
  "id": 18551516,
  "title": "Energy Reliability Is Becoming More Important Than Energy Politics",
  "url": "https://urgent.news/2026/11/06/energy-reliability-is-becoming-more-important-than-energy-politics",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-06T19:00:00.000Z",
  "source": {
    "name": "OilPrice",
    "slug": "oilprice",
    "url": "https://oilprice.com/Energy/Energy-General/Energy-Reliability-Is-Becoming-More-Important-Than-Energy-Politics.html"
  },
  "original_language": "en",
  "account": "In recent years, energy discussions have often centered on the clash between fossil fuels and clean energy sources. Governments set deadlines to phase out certain technologies, investors predicted which sectors would lose favor, and energy policy became increasingly tied to political beliefs. However, the ongoing conflict with Iran has exposed the flaws in this approach. When supplies dwindle and prices surge, governments show little tolerance for ideological consistency and much more concern for maintaining fuel availability, reliable electricity, and manageable costs.\n\nThese lessons are now evident across the oil, natural gas, nuclear power, renewable energy, transmission, and storage sectors. The latest energy crisis has underscored the fact that governments have long recognized: reliability and security must come first. An energy transition that cannot deliver energy when and where it's needed will eventually clash with economic and political realities. The narrow Strait of Hormuz has become the most striking example of this. Historically, about one-fifth of global oil and liquefied natural gas trade passed through this narrow waterway, giving Iran significant leverage over global energy markets. Any disruption to this critical transportation route could quickly render abundant supplies effectively unavailable.\n\nRecent investment plans in the Persian Gulf aim to mitigate this vulnerability by expanding pipelines and other infrastructure to move energy beyond the strait. Saudi Arabia and the United Arab Emirates are investing in new routes to transfer oil to ports outside the Persian Gulf. HSBC CEO Georges Elhedery even suggested that investment in alternative routes could render the Strait of Hormuz largely redundant for oil within five years, though the accuracy of this prediction is questionable. Nonetheless, Gulf producers are placing a higher value on having multiple ways to reach customers.\n\nSaudi Arabia is also exploring options beyond pipelines. On October 26, Saudi Arabia and Singapore announced plans to establish a crude oil storage arrangement at Singapore's Jurong Rock Caverns. The project, expected to begin in the second half of 2027, aims to enhance Singapore's energy security while making Saudi Arabia's supply chain more resilient during disruptions. In essence, Saudi Arabia is not producing more oil due to the war; it is investing to ensure its existing oil can be delivered more reliably.\n\nThis distinction is becoming increasingly crucial. For decades, energy security discussions mainly focused on reserves and production capacity. However, this crisis has highlighted that the transportation system connecting production to consumers can be equally, if not more, important. A barrel that cannot reach the refinery holds little value for consumers. LNG also illustrates the significance of geography. Qatar, one of the world's leading LNG suppliers, depends almost entirely on passing through the Strait of Hormuz. Unlike crude oil, LNG cannot be redirected through an existing oil pipeline to another coast. This vulnerability has led QatarEnergy to secure long-term U.S. LNG supplies, including a 20-year agreement with Woodside Energy's Louisiana LNG project, set to begin deliveries in 2030. The United States benefits from a geographically different position, with Gulf Coast LNG terminals supplying Atlantic Basin customers without passing through Hormuz and North American gas production supported by extensive pipelines and storage facilities.\n\nThe war has reinforced that the cheapest molecule is not necessarily the most valuable if its route to market can be interrupted. Canada is taking a similar approach, approving Phase 2 of the Kitimat LNG project, which will double its capacity from 14 million to 28 million metric tons annually. This expansion gives Asian customers another significant LNG source directly on the Pacific Coast, avoiding both Hormuz and longer Gulf Coast shipping routes. Shell explicitly cited energy supply diversity and security as reasons for this decision. Europe has also learned this lesson firsthand. Following Russia's invasion of Ukraine, the continent rapidly reduced its dependence on Russian pipeline gas, replacing much of it with U.S. LNG. While this strategy prevented severe shortages, it has made Europe more dependent on global LNG markets, another geopolitical crisis now disrupting Middle Eastern supplies. Consequently, European gas prices have surged, peaking above 100 per megawatt-hour in late October for the first time since 2022.",
  "summary": "For much of the past decade, energy debates often pitted fossil fuels against clean energy. Governments announced dates for phasing out technologies, investors tried to anticipate which industries would lose favor, and energy policy increasingly became entangled with political identity. The war with Iran has exposed the limitations of approaching energy policy that way. When supplies are…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}