As globalization continues to dissolve borders, nations are becoming more and more energy interdependent. Yet the majority of current hydrocarbon resources are concentrated in just five countries.2 While this has long been the case, what is different now is that more stable sources of supply—those in the U.S., Canada and Western Europe—are for the most part mature resource basins, declining in production.3

In the news today, we hear about uncertainties around the world. Even if disruptions do not affect supply in any meaningful way over the long-term, they do create a psychological risk factor, which can lead to short-term volatility in energy markets, and a reluctance to invest in those regions.4

A stable social, political and business environment is essential for attracting long-term investments. That means a reliable legal framework that recognizes the rule of law and respects contracts—which in turn leads to predictability and security. Revenue transparency is necessary to reduce the occurrence of corruption and abuse. And the basic needs of the local people must be met to provide a reliable work force, supply chain and market for products.5

When these basic conditions are in place, investment can flow and partnerships can thrive. Private industry will be more likely to bring their resources and expertise to bear on the challenges of finding new sources of energy.6