Energy supply chains seen as a growing risk

Energy supply chains have become increasingly complex in recent years, with firms handling more processes and logistics than in the past, according to a survey conducted by Energy Risk and ION Commodities.

Much of this increased complexity is due to worldwide environmental mandates that require fossil fuels to be blended with a certain percentage of biofuels. As a result, many energy producers and consumers now need to manage not only their fossil fuel supply chains, but a pure biofuel supply chain and a blended biofuel chain, all of which require separate transportation and storage assets. Additionally, the associated green certificates need to be managed and tracked.

At the same time, supply chain risk is increasing due to geopolitical tensions, sanctions and trade tariffs, leading many firms to consider supply chain risk as a major concern, and some even viewing it as an existential threat.