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Beyond the Strait: The Future of Global Energy Security

Dr Carole Nakhle, CEO of Crystol Energy and Secretary General of the Arab Energy Club, joined a webinar organised by the Arab Gulf States Institute, AGSI, titled Beyond the Strait: The Future of Global Energy Security. The discussion explored how tensions around the Strait of Hormuz are reshaping global energy security, trade flows, infrastructure and investment.

Dr Carole Nakhle discusses the future of global energy security and the changing role of the Strait of Hormuz during an AGSI webinar

Key takeaways from Dr Nakhle

  • Energy markets have proved more resilient than many expected, supported by diversified supplies, comfortable inventories, flexible US shale production and relatively subdued demand.
  • Alternatives to Hormuz provide valuable optionality, but pipelines, storage and alternative routes reduce exposure to disruption rather than eliminating infrastructure risks altogether.
  • There will be no simple return to the old normal, as the conflict is already driving changes in infrastructure, investment models and the competitive structure of oil markets.
  • The crisis should be a wake up call for greater Gulf energy cooperation, particularly given the limited infrastructure connectivity between countries holding some of the world’s largest oil and gas reserves.
  • A more diversified energy mix is essential for energy security, particularly in a Middle East that remains highly dependent on a relatively narrow range of energy sources.

Dr Nakhle was joined by Robin Mills, Non Resident Fellow at AGSI and CEO of Qamar Energy, and Dr Adnan Shihab Eldin, Senior Visiting Research Fellow at the Oxford Institute for Energy Studies. The discussion was moderated by Kate Dourian, Non Resident Fellow at AGSI, Contributing Editor at MEES and Fellow at the Energy Institute.

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