Navigating Cost Pressure and Volatility in the Global Energy Sector

As energy markets continue to navigate a period of heightened volatility, organisations across the sector are balancing multiple and often competing priorities. Rising costs, geopolitical uncertainty, supply chain disruption, workforce pressures and the accelerating energy transition are all reshaping how businesses invest, operate and plan for the future. At the same time, demand for secure, reliable and affordable energy remains as critical as ever, requiring leaders to build resilience while identifying opportunities for growth and innovation.

In this Q&A, Zara Higgins, General Manager Saudi Arabia and Global Head of Energy Travel at ATPI, shares her perspective on the current state of the global energy market, the challenges facing organisations today, and the strategies helping businesses maintain operational continuity, manage costs and position themselves for long-term success in a rapidly evolving landscape.

Q1. What is the current state of the global energy market?

From my perspective, the global energy market is best described as resilient, active, but increasingly complex. Investment remains extremely strong across traditional energy, infrastructure, and lower-carbon technologies, yet businesses are operating against a backdrop of geopolitical risk, regulatory change, and continued price volatility. What is particularly interesting is that energy security and energy transition are no longer being treated as separate conversations. Organisations recognise that the world still needs reliable conventional energy today, while simultaneously investing in the systems and technologies required for the future. The challenge is managing both agendas responsibly and commercially.

Q2. How has geopolitical uncertainty affected sentiment, investment and market dynamics?

Geopolitical uncertainty has made customers more cautious, but it has not necessarily stopped investment. Instead, it has changed how decisions are assessed. Businesses are placing far greater emphasis on supply resilience, geographic diversification, scenario planning, and the ability to respond quickly when circumstances change. We are also seeing much greater scrutiny of routes, suppliers, and operational dependencies. Confidence now comes from having credible contingencies rather than assuming disruption will not happen. In many cases, recent events have accelerated investment in domestic capacity, alternative supply routes and technologies that reduce exposure to a single market or energy source.

Q3. How do organisations maintain operational continuity and stakeholder confidence?

Operational continuity begins long before a disruption occurs, it is something that must be considered and planned for.  The strongest organisations understand their critical people, assets, suppliers, and routes, and have alternatives in place before they are needed. That requires good data, clear decision-making structures and partners that can respond at speed. From a workforce-mobility perspective, it also means knowing where employees are, understanding emerging risks and having credible options to move people safely and efficiently. Customers and investors do not expect every disruption to be prevented, but they do expect organisations to be prepared, communicate transparently, and demonstrate that they can maintain essential operations under pressure.

Q4. What are the biggest drivers of cost inflation in the sector?

I don’t believe that there is one single driver. Energy businesses are facing higher labour and specialist-talent costs, constrained engineering capacity, more expensive equipment and materials, increased financing costs and greater expenditure on security, compliance, and resilience. Logistics can also become significantly more expensive when established routes are disrupted or projects are in remote and challenging environments. At the same time, organisations are being asked to invest in technology, infrastructure, and sustainability programmes without compromising existing operations. The real cost challenge is therefore not simply inflation, it is the number of essential priorities competing for capital at exactly the same time, it has become somewhat of a challenge.

Q5. How is investment influencing competition for resources and capacity?

The level of global activity is creating intense competition for specialist talent, engineering expertise, equipment, manufacturing slots, and project-delivery capacity. Traditional energy projects are often drawing from the same labour and supplier markets as renewable, infrastructure and transition projects. That means companies cannot assume the required capability will simply be available when a project is approved. Workforce planning, supplier relationships, and the ability to mobilise people internationally are becoming strategic differentiators. Organisations that engage early, build long-term partnerships, and create attractive career pathways will be better positioned than those relying solely on short-term procurement or recruitment solutions.

Q6. How are businesses navigating energy-price volatility?

The most resilient businesses are not attempting to predict every market movement, instead they are building organisations capable of operating through different situations and scenarios. That includes maintaining disciplined capital allocation, protecting liquidity, diversifying revenue, and supply exposure, and using data to identify changes early. Companies are also phasing investments more carefully and applying stronger commercial tests before committing capital. However, resilience cannot become an excuse for standing still and organisations likely to achieve sustainable growth are those that remain financially disciplined while continuing to invest selectively in assets, technology and capabilities that strengthen their long-term position.

Q7. Are customers balancing efficiency, security and sustainability?

Absolutely, personally I think the conversation has moved well beyond pursuing the lowest immediate cost. Customers increasingly recognise that an option which appears cheaper may carry significantly greater operational, security or sustainability risk. The objective is now to achieve the best overall value while protecting continuity and meeting longer-term commitments. This requires organisations to understand the consequences of their decisions across the entire operation, rather than assessing each area in isolation. Data is critical because it enables leaders to identify where efficiencies are achievable without weakening resilience, compromising employee safety, or undermining sustainability objectives. Competitiveness increasingly depends on managing all three priorities together.

Q8. How are businesses balancing energy security with decarbonisation?

I do not believe this should be framed as a choice between immediate energy security and the longer-term transition. Both are necessary and businesses must continue supplying the energy required to support economies and communities today, while investing in cleaner and more diversified systems for tomorrow, it is the only option for longer term sustainability. This means reviewing investments, improving the efficiency and emissions performance of existing operations, and developing new technologies alongside them. The organisations making the strongest progress are taking a more pragmatic approach by setting ambitious goals, but ensuring that the transition remains operationally achievable, financially sustainable and aligned with the different requirements of each market.

Q9. What opportunities are emerging from the energy transition?

The transition is creating opportunities far beyond renewable generation alone. Hydrogen, carbon capture, energy storage, electrification, sustainable fuels, and digital optimisation all have significant potential. I also see major opportunities in engineering, workforce mobility, specialist recruitment, infrastructure, technology and professional services. Digital innovation will be particularly important because better data can help companies improve asset performance, reduce emissions, manage costs, and make faster decisions. The businesses that succeed will not necessarily be those attempting to participate in every new area, but those that understand where their existing expertise gives them a credible and commercially sustainable advantage.

Q10. How do you lead through rapid change and uncertainty?

For me, leadership during uncertainty is about providing clarity without pretending to have every answer. People need to understand the direction of travel, the immediate priorities and what is expected of them, even when external circumstances continue to change. I believe strongly in staying close to customers and employees, listening to expertise across the business and being willing to adjust decisions when new information becomes available. Leaders must remain calm, visible, and decisive, but also create an environment in which people feel comfortable in challenging situations. The objective is not to remove uncertainty, it is to give teams the confidence and structure to operate more effectively.

Q11. What is the one message the industry should understand?

My message would be that the energy sector should not be viewed only through the challenges it faces. It remains one of the most innovative, resilient, and economically important industries in the world. It supports communities, global supply chains, employment, and economic development, while also carrying significant responsibility for building a more sustainable future. Achieving that future will require significant investment, collaboration, and realism. No individual organisation, technology or market can deliver it alone and the greatest progress will come when customers, governments, suppliers and partners work together, share expertise and balance ambition with the practical realities of maintaining secure and affordable energy.