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Benjamin Lakatos: The current storm is far from over
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Benjamin Lakatos: The current storm is far from over

December 29, 2022
The year 2022 not only turned the world upside down geopolitically but has also triggered a wave of unprecedented market disruptions in the energy industry and beyond.

Benjamin Lakatos, Chairman and CEO MET of Holding AG

Source: Energate Switzerland

This almost ‘perfect storm’ has resulted in our industry being completely shaken up, with not a stone left unturned and many market participants having experienced a hard landing on a ground of facts. In addition to the losers, there are of course always winners during times of such violent shocks. What unites them all is the fact that everyone involved is very tired after this extraordinary year – not least the winners.

But it does not change the fact that the really big upheaval is yet to come. At the end of 2022 we are facing fundamental changes that will come our way in the next five to ten years. Prices on the global markets are likely to be moving in calmer waters again by 2025 at the latest, but the current storm is far from over. While concerns about security of supply are currently in the foreground, it is already becoming apparent that the upheaval in the energy industry will accelerate the ongoing green transformation. If energy transition to date has been largely shaped and driven by ideology, the current crisis will now steer discussions and actions towards a much more realistic and pragmatic direction. Europe needs more renewable energy, but it will still be dependent on natural gas and LNG for many years to come.

It remains to be seen which market participants have the best prerequisites for decisively shaping this development in the coming years. In any case, one thing is clear: during the past year the wheat has started to be separated from the chaff. Anyone who has lived beyond their means in recent years and no longer has a functioning business model will have a difficult time in the coming future.