Asian nations boost coal use amid Iran war energy shocks

Asian countries are increasing their reliance on coal, both in consumption and investment, as a measure to ensure energy security. This shift is a direct response to price shocks stemming from the Iran war, which have highlighted vulnerabilities in regional energy strategies. While the growth of renewable energy continues, the current geopolitical climate has re-emphasized coal's established role in the region's energy mix, posing a potential threat to climate goals.

In parallel, Australia is intensifying its efforts in oil and gas exploration to strengthen its domestic supply and meet international export demands. This surge in activity is fueled by the ongoing global energy crisis and a significant reduction in the nation's refining capacity. Australian companies are projected to invest over $1 billion in gas exploration during the current year, marking a 10% increase compared to the previous year. The government is facilitating this expansion through the issuance of new drilling licenses and the implementation of streamlined approval processes.

Meanwhile, India is taking steps to enhance its own energy security and crude storage capabilities. The nation plans to construct a new strategic petroleum reserve facility located in Mangaluru. The Oil and Natural Gas Corporation (ONGC) has been assigned the responsibility for overseeing this significant project, which aims to mitigate concerns arising from potential supply disruptions and bolster the country's overall energy resilience.