The Energy Source Countries Don’t Have To Fight For

“In just over three weeks, an estimated US$70 billion (RM274.68 billion) has flowed into solar, battery storage and related technologies [globally].” That single statement tells you everything about the scale of what has happened – and why the closure of the Strait of Hormuz may have permanently changed how the world thinks about energy.

A World Still Dependent On Oil

Before this, your average joe most probably had never heard of the Strait of Hormuz. Now most of the world knows it as the waterway between Iran and Oman that carries one-fifth of the world’s oil through it every single day.

The whole world continues to suffer due to the conflict in the Middle East, leaving people to endure this economy driven by oil. Just last week, the diesel price in Malaysia hit an alarming RM6.72 per litre. It’s bad, and yet we are fortunate enough to have our own source of oil. I can’t fathom what other countries who don’t have their own source of oil are going through. 

Even with a ceasefire now in place, uncertainty still looms in the air. Especially since the world’s energy market is still highly dependent on fossil fuels. And it’s not the first time a war has affected the world when it comes to oil.

First Russia-Ukraine. Now US/Israel-Iran.

Within this decade alone, the world has been hit by two oil crises caused by conflicts between nations. The Russia-Ukraine war largely wounded Europe. Asia was barely affected by it. Because the oil was still moving. The US-Iran war, however, wounded everyone. Because the oil stopped moving. And just like that, the whole world is realising how dependent they are on a narrow strait and a resource that is only available in a few countries. 

With one fell swoop, the entire architecture of global energy supply looked fragile in a way it never had before. 

Pakistan: Saved By The Grace Of Their Own Solar Initiative

Just a few weeks ago, The Economist ranked which country is suffering most from the Middle East crisis. Top of the list was Pakistan — hurt not only by the oil shock, but by the sheer number of Pakistanis working in the Gulf and sending wages back home to their families.

And yet Pakistan’s energy story carries a lesson for the rest of the world. Despite being one of the most affected nations, the country was cushioned from the worst of the fuel crisis because of one decision made in the years prior: a rapid, widespread investment in rooftop solar and batteries. This reduced their dependence on imported LNG before the crisis even began.

In hindsight, it wasn’t merely a decision to combat climate change, it was a matter of survival. But Pakistan’s story wasn’t the first. The blueprint was written by a country in northern Europe who suffered greatly from an oil crisis that happened over 50 years ago.

The Country That Saw This Coming In 1973

When the Arab oil embargo hit in 1973, Denmark was blindsided. At the time, 90% of the country’s energy came from imported oil. The crisis hit them hard and left a mark that shaped national policy for the next half century.

Rather than wait for the next crisis, Denmark invested aggressively in wind energy, efficiency, and energy independence. Slowly, then rapidly, it became one of the world’s leading renewable energy nations. In 2026, Denmark is expected to cover 100% of its energy consumption from renewable energy.

The lesson took fifty years to fully prove itself. For the leaders who say it’s too ambitious, they only need to look to the northern part of the world to see what they can learn from nations who chose to speed up their transition to renewable energy because of how greatly they suffered from an oil crisis.

The Shift That Can No Longer Wait