The World Energy Council has warned that the energy sector is facing greater risks than ever before.

Cyber threats, extreme weather and an over-reliance on water for use in power production were highlighted as the major threats.

The number of extreme weather events each year is four-times higher than 40 years ago, the report said.

It also highlighted the fact that 98% of the world’s electricity supply is “critically” dependent on the availability of water.

By 2018, the report suggested that the world’s oil and gas companies could be spending $1.87 billion a year to tackle cyber threats.

Ways to tackle threats

The report’s recommendations to tackle the threats consisted of:

  • smarter designs for energy infrastructure;
  • better evaluations of energy system designs;
  • better sharing of information around risks;
  • improved regulations and market guidance;
  • increased private finance in infrastructure;
  • greater use of cost-benefit analysis in financial decision making;
  • and encouraging diversity in the energy sector and related industries.

> Find out more about the report