Global energy risk: tapping into the water opportunity
In 2013, Wood Mackenzie outlined how water stress would threaten the global energy industry. Since then, pinch points have been observed in the US shale gas industry, coal production in China, and rapidly developing Middle Eastern economies. Population growth and agricultural demands add to the pressure on energy markets, which are likely to face intensifying water shortages if the projections for global climate change are borne out. Yet energy companies are increasingly regarding water risk as an opportunity, as much as a threat to business. Verisk Maplecroft and Wood Mackenzie assess the latest global water risk and opportunity for the energy industry.