Energy security cannot be the forgotten pillar of the energy transition

FOR years, the global energy conversation has been dominated by one phrase: energy transition.

The goal is clear and necessary. Climate change is real, and the world must continue investing in lower-carbon energy solutions. But as I travel across Africa, Latin America and South-east Asia, I am often reminded that the conversation looks very different depending on where you stand.

In many developed economies, the focus is on how quickly societies can decarbonise. But in many developing economies, the more immediate concern is whether households, schools, hospitals and businesses have access to reliable and affordable energy in the first place.

That is why I believe energy security must remain at the centre of the discussion.

The reality is that global energy demand continues to grow. Electrification is expanding. Artificial intelligence and data centres are increasing power consumption. Growing populations and rising living standards are placing additional demands on energy systems.

Renewables are growing rapidly and should continue to do so. Yet the scale of future demand means that, for the foreseeable future, the world will require a mix of energy sources.

Increasingly, what we are witnessing is not simply an energy transition, but also an era of energy addition. This reality becomes especially clear when viewed through the lens of human development.

According to the World Health Organization and the International Energy Agency, around 655 million people around the world still lack access to electricity, while roughly two billion people continue to rely on polluting fuels for cooking.

Most live in developing economies, particularly in sub-Saharan Africa, where access to modern energy remains one of the biggest barriers to economic progress and improved quality of life.

These are not abstract statistics. Many countries across sub-Saharan Africa and South Asia, and some parts of Latin America and the Middle East, continue to contend with unreliable or underdeveloped power systems.

Here, businesses still struggle with unreliable power supplies, economic growth is constrained because energy infrastructure has not kept pace with demand, and access to affordable energy remains a prerequisite for development.

For these countries, energy is not simply an environmental issue. It is a development imperative as well.

Using oil and gas responsibly

That does not mean countries should choose between economic development and sustainability. They need both. But achieving both requires acknowledging the realities of today’s energy system.

While renewable energy will continue to play an increasingly important role, many developing economies still depend on oil and gas to power industries, generate government revenues and support economic growth.

The challenge is therefore not whether these resources are used, but how they can be produced more responsibly while societies build lower-carbon energy systems for the future.

This is where offshore oil and gas continues to have a role.

As a Singapore-headquartered company operating across multiple regions, Yinson sees first-hand how energy priorities differ from country to country.

Singapore itself understands the importance of energy security. With limited domestic energy resources, the country has built its success on ensuring reliable and affordable access to energy while remaining open to innovation and new technologies. The same balance is increasingly needed globally.

Another example is Ghana, which relies on gas to power homes, industries and businesses across the country.

When discussing energy security, it is important to remember that behind every energy asset are people and livelihoods that depend on reliable supply.

The same applies across many energy-producing nations.

Offshore projects generate revenues that can fund infrastructure, healthcare, education and broader economic development. They help countries strengthen their energy independence and support long-term growth.

None of this means that oil and gas should be the only answer.

A balancing act

The energy industry has a responsibility to reduce emissions, improve efficiency and support the development of cleaner technologies.

Yinson Production, for instance, invests in technologies designed to reduce emissions from its vessels while also expanding its participation in lower-carbon energy technologies, including carbon capture and storage.

Energy security and decarbonisation are not mutually exclusive objectives.

In fact, a successful transition depends on balancing three objectives: affordability, sustainability and security.

Recent geopolitical events have reinforced this lesson. Energy systems are vulnerable to conflict, supply disruptions and market volatility. Countries are increasingly recognising the importance of diversified energy sources.

The challenge before us is not choosing between energy security and sustainability. It is achieving both.

The future energy system will likely be more diverse than today’s, with renewables, natural gas and other energy sources working together to meet rising global demand while lowering emissions.

As policymakers, businesses and investors navigate these challenges, we should not lose sight of a simple truth: for hundreds of millions of people, access to reliable energy is still not guaranteed.

Before societies can fully transition, they must first be secure. And if we are serious about building an inclusive and sustainable energy future, energy security cannot become the forgotten pillar of the energy transition.

The writer is chief executive officer of Yinson Production, which operates floating production, storage and offloading vessels for the offshore oil and gas industry