Opportunities From Europe's Energy Security Strategy
BMI View: The EU Commission's new European Energy Security Strategy will spell new opportunities f or the energy sector in Europe. The ongoing Russo-Ukrainian crisis and Russian assertiveness on Europe's Ea stern flank have (as per our expectations) galvanised the resolve of the European Council to seek greater diversification of energy supplies.
Europe's new impetus in strengthening the continent's energy security brings with it commitments to investment, especially in the construction of new pipelines and electricity transmission networks, storage infrastructure, and renewable energy, but also conventional and unconventional E&P. These will create new opportunities for energy sector stakeholders, from engineering companies to equity investors, project financiers, oilfield services, and upstream companies.
In its most forceful Energy Security Strategy (unveiled in late May 2014) published in recent years, the European Commission has set forth a series of recommendations on how to reduce the EU's vulnerability to (specifically) Russian dominance of energy supplies. The tone and language of the document, as well as the actual recommendations to the European Parliament and European Council, mark a departure from the more balanced approach taken previously.