Europe’s Energy Security Landscape Amidst Geopolitical Shifts and Investment Trends: Strategies, Competitiveness and Market Vulnerability

The article explores the evolving landscape of European energy security amidst geopolitical tensions and market dynamics. Despite the European Union’s efforts to protect consumer interests, access to its energy market has been restricted for nations disregarding international law, leading to shifts in pricing dynamics and trade patterns globally. Notably, market participants like African nations and Kazakhstan have gained influence, while China and India face challenges in their dealings with Russian energy. The study assesses the effectiveness of strategies adopted by energy market participants and their implications for investor sentiment, using Axelrod tournament simulations to analyse strategic choices. Insights from the competition reveal the advantage of active strategies and the importance of readiness for unexpected moves. Furthermore, the article examines the interaction of strategies within the energy market and their impact on competitiveness. It also presents the inclusion of crude oil within optimal investment portfolios and discusses the temporary retreat of European and American investors from renewable energy markets in vulnerable regions like Africa. The findings suggest a decline in investor interest in renewable energy ventures outside the EU, highlighting the complex interplay of geopolitical factors, market dynamics, and investor sentiment in shaping Europe’s energy security landscape.

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