NEW EXPOSURES: ENERGY-RELATED DISPUTES IN A VOLATILE GLOBAL MARKET
Few sectors are as important to the global economy as energy. Accounting for between 8 and 10 percent of global gross domestic product, the sector underpins economic growth, supports national security and plays a central role in the transition toward lower-carbon energy sources.
As critical infrastructure, the energy sector is defined by its highly interconnected and globalised nature. Resources and raw materials are mined, shipped, processed and distributed across supply chains that span every country and region.
In terms of size and revenue, oil and gas producers have historically been the largest companies in the sector, with many operating across multiple stages of the value chain. State-owned enterprises, in particular, regularly rank among the world’s largest energy companies by revenue.
As populations continue to grow and low-income countries accelerate urbanisation, global energy demand is expected to rise further. Although demand fell in 2020 due to reduced economic activity during the pandemic, global primary energy production has increased by approximately 60 percent since the start of the century.
“The energy sector is a huge factor in everyday life across the globe,” affirms Alexander Slade, a partner at Mantle Law. “It is also simultaneously local and transglobal. Electricity supply comes from the domestic grid and domestic energy policy dictates consumer pricing, security of supply and the type of energy sources available. At the same time, however, the sector is heavily globalised.
“Commodity energy sources are produced, exported and traded worldwide,” he continues. “The price of these commodities is driven by global events and politics. And energy projects – whether in oil and gas or renewables – are generally large scale, complex and capital-intensive projects, executed by global companies and with globalised supply chains and material requirements.”
Jul-Sep 2026 issue
Fraser Tennant