The interrelation between energy independency and energy security

In an interview given to Paul Hickin for S&P Global Platts, Dr Carole Nakhle, CEO of Crystol Energy, comments on the recent claim of the US Energy Secretary Rick Perry that energy independence for his country is within reach and explains the interrelation between energy independency and energy security.

“History tells us that energy independence does not necessarily equate with energy security; Winston Churchill’s wise advice on achieving energy security through ‘variety and variety alone’ is as valid today as it was a century ago”, says Dr Carole Nakhle.

According to Dr Nakhle, energy independence does not necessarily equate with energy security. She points to the Persian Gulf countries’ growing relationship with Asia, not only through bilateral oil trade but through direct energy investment as an example of the interdependency of long-term supplies. Dr Nakhle also adds that Winston Churchill’s wise advice on achieving energy security through ‘variety and variety alone’ is as valid today as it was a century ago. Competitive market structures, though, give consumers stronger bargaining power simply because they have more choice.

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