Source: NYT > Business (paywall)
Decades of supply disruptions—from the 1973 oil embargo to recent Houthi attacks on tankers—have convinced developing Asian economies that energy independence is cheaper than geopolitical exposure, accelerating investments in nuclear power, renewable capacity, and domestic fuel sources rather than betting on stable global markets. This fragmentation undermines the post-1970s assumption that open trade and strategic reserves could buffer energy shocks. India, Vietnam, and Indonesia are building redundant capacity instead of optimizing through integrated supply chains. Energy investment is shifting from oil majors and pipeline operators to state-backed nuclear programs and renewable developers, altering the structure of global energy infrastructure and reducing the leverage of traditional petrostates.