Posted on: 20/09/2016
The World Energy Council has warned that the energy sector is facing greater risks than ever before.
Cyber threats, extreme weather and an over-reliance on water for use in power production were highlighted as the major threats.
The number of extreme weather events each year is four-times higher than 40 years ago, the report said.
It also highlighted the fact that 98% of the world’s electricity supply is “critically” dependent on the availability of water.
By 2018, the report suggested that the world’s oil and gas companies could be spending $1.87 billion a year to tackle cyber threats.
Ways to tackle threats
The report’s recommendations to tackle the threats consisted of:
- smarter designs for energy infrastructure;
- better evaluations of energy system designs;
- better sharing of information around risks;
- improved regulations and market guidance;
- increased private finance in infrastructure;
- greater use of cost-benefit analysis in financial decision making;
- and encouraging diversity in the energy sector and related industries.