The BP Energy Outlook 2023 report on Monday explored the speed and shape the energy transition
may take to 2050. Two main elements, according to BP, are shaping the transition: the Inflation Reduction Act (2022) in the US and the ongoing Russia-Ukraine war.
Experts from BP commented on the long-lasting effects of the Russia-Ukraine war on the global energy system. There has been a heightened focus on energy security and demand for domestically produced renewables and other non-fossil fuels, to accelerate the energy transition.
According to BP, the Russia-Ukraine war is likely to have lasting effects on the global energy system, including heightened energy security, weaker economic growth and changing mix of global energy supplies.
Energy security is also a huge focus, triggered by the concerns about energy shortages. For countries across the world, this means an increased incentive to improve energy efficiency, reducing the need for supplies.
Higher prices as a result of the war have contributed to a slowing of global economic growth.
With the war ongoing, the future of Russian energy supplies is also uncertain.
