ENERGY SECTOR DISPUTES: NAVIGATING THE NEW FRONTIER
CD: What are the most significant recent and ongoing trends shaping the global energy sector? What are the main challenges companies face?
Bodell: The global energy sector is undergoing profound transformation across multiple fronts. The Organization of the Petroleum Exporting Countries’ market power continues to erode while liquified natural gas (LNG) production and exports surge worldwide. Perhaps most dramatically, electricity demand is skyrocketing – driven by data centres supporting cloud computing, artificial intelligence and cryptocurrency operations – creating urgent needs for new generation capacity and transmission infrastructure. Meanwhile, a stark divergence is emerging between global reliance on renewable energy and the US federal government’s recent pullback from wind and solar incentives. This split extends to decarbonisation efforts more broadly, with most countries pursuing their Paris Agreement commitments even as US policy shifts direction. The electric vehicle (EV) landscape similarly reflects this geopolitical divide, with China establishing dominance as the US withdraws support. These shifts are creating immediate challenges for energy companies. Rising electricity prices stem from the collision of higher demand, stagnating supply and increased delivery infrastructure investment. At the same time, stressed electricity systems are raising serious questions about reliability and resiliency. Companies planning large data centre loads or industrial investments face frustrating interconnection delays that can significantly impact project timelines and economics.
Jan-Mar 2026 issue
StoneTurn