Because it imports nearly all of the fuel that powers its economy, Taiwan is unusually vulnerable to energy market risks. Volatility has grown in the world’s major oil-producing regions, especially the Middle East, where the specter of conflict between the United States and Iran looms ever larger. What is more, over the long term, countries dependent on oil export revenue will need to successfully adapt to a world characterized by declining oil demand. They will likely struggle to diversify their economies and ensure employment, yielding another significant source of instability. Meanwhile, commodity markets, from crude oil to natural gas, have been buffeted by geopolitical volatility, political and investment risks, and technological disruption.
Evan Feigenbaum
