Global Energy Crisis Heading towards Darkness by Amit Baijnath Garg

Global Energy Crisis Heading towards Darkness

Amit Baijnath Garg

"Achieving the goal of affordable and clean energy for all by the year 2030 requires international cooperation and robust policies. This necessitates collective efforts. Furthermore, the energy sector must, at all costs, be shielded from wars and conflicts. If this fails to happen, the world will plunge into darkness."

Under the pretext of the conflict involving the US, Israel, and Iran, the global energy sector is once again being targeted. Recently—for the first time—Iran and Israel launched attacks on facilities linked to fossil fuel energy production, thereby heightening fears of a global energy crisis. In reality, energy is now being weaponized as an instrument of war. Israel attacked the South Pars gas field, which it shares with Qatar. In retaliation, Iran launched drone and missile strikes against Saudi Arabia's Aramco-owned SAMREF refinery, as well as gas facilities in Qatar and the UAE—a move that has marked a dangerous turning point in the conflict. The world's largest gas field, South Pars, serves as the backbone of global LNG supplies, including those to India. The surge in oil and gas prices following the Israeli attack is proving to be financially crippling for the common man, as well as for nations across the globe.

A look back at history reveals that following the US invasion of Iraq in 2003, it took months to repair the damaged energy infrastructure. Production levels did not return to pre-war standards until nearly two years later. During this period, the world faced a severe energy crisis. Experts warn that repairing damaged energy production infrastructure can take years; damage to LNG plants, in particular, is the most critical, as their restoration can take several years. Retaliatory attacks on gas facilities have far-reaching global repercussions. It is a well-established fact that energy disruptions impact fuel prices and supply chains, which, in turn, adversely affect economies.

The Gulf region continues to serve as a vital energy corridor for Europe, Asia, and India. Meanwhile, amidst the ongoing conflict, Iran has stated that if its energy installations are attacked again, it will completely devastate the oil and gas sectors of the Gulf nations. Iran's military unit, the IRGC, asserted that the United States and Israel committed a grave error by striking Iran's energy infrastructure. Should such an act be repeated, the retaliation would be far more severe. Prior to this, Iran's largest gas field—the South Pars Gas Field—came under attack. This is the world's largest gas field, situated offshore near Bushehr. Immediately thereafter, Iran issued a warning to Qatar, Saudi Arabia, and the United Arab Emirates, cautioning that their oil and gas facilities could be targeted. During this period, a missile strike was launched against Qatar's Ras Laffan gas plant, causing extensive damage and heightening global anxiety.

The persistent attacks on the energy sector demonstrate that this conflict is no longer confined solely to military installations; rather, the global energy supply itself is now under direct threat. If the situation continues to deteriorate in this manner, oil and gas prices could witness a sharp surge, the repercussions of which would be felt across the entire world. Concurrently, the situation in the Strait of Hormuz remains extremely precarious due to the ongoing conflict involving Iran. Hundreds of vessels remain stranded, thereby perpetuating a global energy crisis. It is noteworthy that the Strait of Hormuz serves as the conduit for 20 percent of the world's oil exports. In this context, the United States recently launched an attack on the Strait of Hormuz, an action that has further exacerbated the already perilous situation. In essence, the confrontation that initially erupted between the US-Israel axis and Iran has now evolved into an "oil war," which continues to take increasingly dangerous turns. It is anticipated that the situation is likely to become even more dire in the days ahead.

Meanwhile, the world is already grappling with disruptions in crude oil supplies as a result of Iran's restrictions on maritime traffic through the Strait of Hormuz. Under these circumstances, any damage inflicted upon production facilities could have lingering repercussions that persist for years to come. According to estimates, the South Pars gas field holds reserves of 1,800 trillion cubic feet of gas—sufficient to meet the world's needs for several years. For Tehran, South Pars serves as the hub of its energy supply; approximately 80 percent of Iran's electricity is generated from this gas field. This gas field, however, does not belong exclusively to Iran. Iran shares it with Qatar—an ally of the United States and the world's largest producer of LNG. The Qatari portion is known as the North Field, from which large quantities of LNG are exported to global markets.

In reality, the world is grappling with a severe crisis driven by an unprecedented surge in energy demand, the lack of electricity access for 1.18 billion people (known as "energy poverty"), and a heavy reliance on fossil fuels. Led by China, rising coal consumption and geopolitical tensions have further complicated this crisis, even as there is an urgent need to transition toward clean energy to combat climate change. While renewable energy has reached record levels alongside the growing demand for energy, the consumption of fossil fuels—specifically coal, oil, and gas—also remains at record highs. In developing regions, particularly in Sub-Saharan Africa, hundreds of millions of people still lack access to reliable electricity or clean cooking fuels. Furthermore, it is not just energy systems that are under strain; climate change-induced weather disasters are also damaging energy infrastructure—specifically electricity transmission grids—affecting over 200 million households.

Meanwhile, the crisis involving Ukraine and Russia, along with other instances of geopolitical instability, has disrupted global energy supply chains. Rather than a decline in fossil fuel usage, some regions have witnessed a surge of over 50 percent in the demand for coal, leading to a record increase in carbon emissions. Fundamentally, a rapid transition toward clean energy represents the only viable path forward—a transition that necessitates massive investment in new technologies and infrastructure. Countries across the globe are diversifying into renewable energy sources—such as solar, wind, and hydrogen—to enhance energy security and reduce their dependence on traditional energy sources. Moreover, expanding access to clean energy in rural areas holds the potential to bring about significant improvements in both public health and the environment. Concurrently, China's energy demand is projected to peak and subsequently decline, a shift that could fundamentally reshape the global energy landscape.

Last year, the International Energy Agency reported that approximately 730 million people worldwide still live without access to electricity. Progress toward connecting these individuals to the power grid has stalled since 2020. Furthermore, in numerous countries—including India—a primary driver of the energy crisis is the fact that the demand for electricity far exceeds its supply—a gap that continues to widen. Electricity consumption in the commercial and industrial sectors is high and continues to rise, as many nations—including India—are still in a phase of development. The greatest challenge now lies in meeting this growing demand through clean energy, while simultaneously seeking alternatives to fossil fuels. A future characterized by clean, abundant, affordable, and reliable energy is attainable, provided that the world can address the existing gaps in finance, policy, and infrastructure. To achieve the goal of affordable and clean energy for all by 2030, there is a need to further strengthen international cooperation and policies. If serious action is not taken in this regard moving forward, the world will plunge into darkness.

Amit Baijnath Garg

Senior Journalist and Writer, Rajasthan, India