In GAR Article, Justin Williams Discusses International Arbitration Issues Around the Energy Transition

Global Arbitration Review has published the article “Transition trends as we approach ‘peak oil,’” written by Akin Gump international arbitration and dispute resolution partner Justin Williams. The article examines international arbitration issues surrounding the transition away from primary reliance on fossil fuels.

Williams notes that this energy transition will “change the face of international arbitration.” The transition could cause greater price volatility as power generation becomes susceptible to the weather and the supply of fossil fuels could become more limited, therefore resulting in related disputes.

Additionally, Williams notes that reduced upstream oil and gas activity among international and independent oil companies may cause a shift in the balance of activity towards state-owned energy companies, which would introduce a different dynamic to arbitration.

Further, while renewables may result in fewer high-value disputes than currently created by upstream oil and gas, Williams adds that renewables will result in new sorts of disputes involving new sorts of facilities, such as construction of nuclear power plants in some countries.

To conclude, Williams notes “there are interesting times ahead” for arbitration lawyers, who should “develop an understanding now of the commercial, technical and regulatory drivers behind each aspect of the energy transition.”