The twin economic shocks triggered by low oil prices and COVID-19 containment measures will have a disruptive impact on renewable energy in 2020 and 2021. Further down the line, however, it will galvanise sector growth, as investors increasingly seek to diversify away from risky portfolios. Prospects will improve further if governments maintain their commitments to sustainable energy and improve their investment climates.
The key uncertainty following the recent strike against the Khurais and Abqaiq facilities – the heart of Saudi Arabia’s oil industry and a vital spoke in the world’s energy infrastructure – is how the US and its regional partners will respond. Among the mainstream foreign policy thinkers, a consensus appears to be emerging that in order to save US leadership in the global economic and geostrategic arena something must be done to rebuild its credibility and bargaining power, but in novel ways.