Energy: risks and uncertainties

Energy: risks and uncertainties

* Ongoing wars have caused volatility in oil prices.

* Persistent inflation around the world has worsened the economy.

* The GDP of the countries has been quite frail.

* Demand for energy points to a slowdown.

* Supply from new generating sources is much more expensive.

In this scenario, there are two important strategies for good decisions to be made in the energy area.

1st)  Management of perceived risks and their mitigation

2nd) Solutions to alleviate uncertainties

Mitigating risks is a possibility that engineering and finance have very effective “tools”.

Reducing uncertainties is something that demands a good dose of assessments and even subjectivity.

But there is one certainty: those who look into the risks and uncertainties will have better results than those who “let it go”.