Nadia Martin Wiggen, energy expert and director at Svelland Capital, illuminates the precarious state of energy security in Europe in light of recent geopolitical turmoil. The backdrop of her analysis is a significant disruption in the oil and gas markets resulting from the US and Israel's military actions against Iran in late February, which have led to drastic fluctuations in both oil and gas prices due to disruptions in crucial transport routes out of the Persian Gulf, namely the Strait of Hormuz.

Wiggen emphasizes that Europe's energy dependency has shifted, as the continent does not rely on crude oil for electricity generation but is increasingly reliant on natural gas, renewable energy sources, and occasionally coal and diesel generators. She points out that gas is at the core of this crisis, indicating that the lack of a reliable safety valve for gas supply poses extreme risks for Europe. This situation is compounded by the fact that gas imports are vital for maintaining energy stability amid uncertain supply chains.

Similarly, senior energy analyst Helge André Martinsen from DNB Carnegie concurs with Wiggen’s assessment that the current crisis could escalate further due to insufficient gas storage capacity, potentially leading to more acute challenges in the gas market. The loss of around 300 million cubic meters of gas per day exacerbates the existing vulnerabilities, highlighting the urgent need for strategic energy solutions as Europe navigates this geopolitical landscape and seeks to ensure its energy future.