Exclusive / JPMorgan is still bullish on the energy transition

The global energy transition is forging ahead, fracturing old trade alliances and generating new forms of geopolitical leverage that all companies need to be more attuned to, JPMorgan believes.

In a report shared exclusively with Semafor, two top researchers at the largest US bank argue the global economy is moving into a “new energy security age” that will see the relative power of fossil fuels wane, but not disappear, and a wider range of assets — including critical minerals, electric grids, nuclear technology, and investments in R&D — come to define what really constitutes energy “dominance.” The US could still fare very well in this scenario if it takes advantage of the full resources at its disposal, not just oil and gas, they write.

The bank is advising its clients to take that change seriously, Sarah Kapnick, its global head of climate advisory, told Semafor. “As a bank, some of the things that we’ve taken for granted about energy over the last few decades are changing,” she said. “The rug has been pulled out from under us, and we need to think about how to have growth under this different regime.”