Energy is delivered to us via intricate and expansive infrastructure networks. Different fuels dominate transportation and electricity but overlaps such as EVs are increasing along with awareness about the supply chain of minerals used in batteries. Electric power generation shares of wind and solar PV are rising, more where resources are high quality and/or incentives are strong. Non-energy uses of hydrocarbons such as feedstock for petrochemicals are crucial for value chain economics but also highlight their macroeconomic value that cannot be readily replaced by alternatives.

 

Environmental concerns, economic goals and global geopolitics shape policy across all of these energy segments. But inherent conflicts among these dimensions and the uncertain pace of technology development and adoption cause frequent changes in policy and regulatory frameworks. Policies across jurisdictions differ significantly for economic and ideological reasons.

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Modern economies will continue to need energy from all sources. Across the world, hundreds of billions of dollars are invested annually in energy infrastructure. A significant portion of the world population has no or limited access to commercial energy services. A greater segment of the population pursues a better standard of living. Their energy needs are much larger and cannot be met solely by alternatives such as wind, solar, and battery storage although these technologies' expansion has been exponential in recent years. Growing mineral and manufacturing supply chains as alternatives scale up will inevitably create their own environmental, geopolitical, and trade issues with attendant policy responses. This dynamic and complex environment creates uncertainty for investment decisions across all energy segments. Understanding the balance between government incentives and market price signals as tools of risk mitigation is imperative to avoid multi-billion-dollar assets becoming stranded.​​