This is both unstoppable and taking place at an unprecedented pace. A lack of oil by 2013 could force the price of crude above $200 a barrel.
One of the world’s most respected institutions warns that business is facing catastrophic consequences by not preparing for oil scarcity.
Supply security and climate change is forcing a wave of initiatives that will revolutionize the way that we manage and use energy.
- Businesses which prepare for and take advantage of the new energy reality will prosper – failure to do so could be catastrophic
- Market dynamics and environmental factors mean business can no longer rely on low cost traditional energy sources
- China and growing Asian economies will play an increasingly important role in global energy security
- We are heading towards a global oil supply crunch and price spike
- Energy infrastructure will become increasingly vulnerable as a result of climate change and operations in harsher environments
- Lack of global regulation on climate change is creating an environment of uncertainty for business, which is damaging investment plans
- To manage increasing energy costs and carbon exposure businesses must reduce fossil fuel consumption
- Business must address energy-related risks to supply chains and the increasing vulnerability of ‘just-in-time’ models
- Investment in renewable energy and ‘intelligent’ infrastructure is booming. This revolution presents huge opportunities for new business partnerships
The insurance market has a major interest in preparedness. Lloyd’s calls on manufacturers, retailers and the wider business community to reassess global supply chains and their just-in time models because the “current system is increasingly vulnerable to disruption.”