Asia Needs $1 Trillion a Year to Avoid the Next Energy Shock

AI Summary

Asia may need roughly $1 trillion annually to strengthen energy security and reduce exposure to future energy shocks as regional demand rises. The article links this investment challenge to the prolonged closure of the Strait of Hormuz, which disrupted flows of oil and gas and could have lasting effects on the region.

Oil and gas may be flowing through the Strait of Hormuz again, but the impacts of its months-long closure will be felt for years to come. For Asia, in particular, regulating markets and shoring up energy security to avoid the next energy shock will require trillions of dollars in the coming years as energy demand projection rates continue to rise sharply across the region. When traffic through the Iranian-controlled Strait of Hormuz stopped overnight back in February in response to a military offensive by the United States and Israel, one-fifth…