We live in uncertain times, with fluctuating energy prices and volatile energy markets. The current global energy crisis highlights the indispensable role of energy security. The spike in gas prices compounded with supply difficulties faced by Europe in meeting its gas needs are, in fact, signals. It has now become evident that the current situation is unstable and unpredictable.
The sharp increase in energy prices subsequently affects both citizens and economies. Some key causes of the gas market crisis lie in outages, supply bottlenecks and a lack of key gas infrastructure in some regions of Europe. Continued support to energy projects that are key to ensuring energy security and a well-managed transition can reduce the risks of energy market volatility and its impacts on businesses and consumers.
Energy security is interweaved with the national security of any country, but sometimes it becomes a source of rivalry and hostility. Forecasting future energy demand is a difficult task. The uncertainties in the energy market demand that we as policymakers craft short and medium-term strategies. Another permanent factor is geopolitics. Energy market participants should decide whether cooperation in the spirit of true partnership will prevail or rivalry and wars will shape the contours of future energy architecture. Energy resources should add value to the development and prosperity of nations, build trust among countries and regions, and create a win-win situation for all participants. The future course of regional energy architecture also depends on the development of reliable networks of interconnectors.
As in all spheres of markets, diversification is essential in reducing countries’ dependence on others. It is the nature and rationale of an independent state in today’s world. Considering the contemporary dynamics and active realities, energy emerges as the most significant market for diversification. Currently, it is the most potent weapon with the absolute power to start a war.
In this context, the ongoing war in Ukraine can be used as an example is understanding the potential limits of energy. Since the start of the war, European nations have rushed to calculate their energy future and accelerate projects and initiatives for alternatives, as they mostly depend on Russian gas. Sanctions after sanctions, in a great reaction and mobilization, Europe is attempting to corner the Kremlin. Meanwhile, Moscow knows its energy supremacy well and uses it as a card against who it sees as rivals and importers simultaneously. In other words, energy and related policies shape and dominate the Europe-Russia diplomacy traffic.
However, Europe’s seeking alternatives has its roots before the Russian invasion of Ukraine. The continent is well aware of its independence need for a while.
Whether in the Southern Gas Corridor or other energy developments or in another field completely, "diversification" requires diplomacy, negotiation or whatever you want to call it. Poland’s stance here is worth mentioning as a valuable example. To be precise, my country condemns the Russian aggression in Ukrainian cities, supports Europe’s diversification plans in energy but is still trying to find a good diplomatic, peaceful solution.
In my view, a rational approach like this can help end a war, diversify the energy supply and improve relations at the same time through strong diplomacy. Poland believes that all sides, from European countries to Russia, can benefit from energy diplomacy. Aggression can be stopped, as can sanctions against Russia, while energy diversification is provided for Europe. Poland, therefore, calls for all parties to gather at an energy diplomacy table.
