Chokepoints: A systemic threat to energy security for oil and gas importers

The central paradox of today’s energy system is that even with abundant supply, energy security is not guaranteed. Importers accounting for over two-thirds of seaborne oil and gas demand are dependent on supplies transiting a small number of maritime and domestic chokepoints. These chokepoints pose an unavoidable, systemic risk of disruptions to transits, which cause price shocks, insurance withdrawal and physical supply constraints that cascade rapidly across the system. The most durable route to resilience for importers is to reduce dependence on oil and LNG through electrification, efficiency, grids, storage and domestic clean energy.