Amid ongoing conflicts in the Middle East, the International Air Transport Association (IATA) has raised concerns over potential disruptions to jet fuel supplies, which could prompt governments to reassess their energy security strategies. The supply chain challenges have highlighted the need for increased investments in alternative energy sources to enhance resilience, according to IATA's chief economist.
Marie Owens Thomsen emphasized that the global economy remains heavily dependent on fossil fuels, with over 80% of energy consumption originating from oil. She warned that current crises illustrate the consequences of underinvestment in sustainable energy solutions, urging a shift towards diversified energy reserves and renewable sources.
Willie Walsh, IATA's Director General, noted that governments may need to reconsider their strategic reserves, particularly emphasizing the importance of maintaining reserves of refined products such as jet fuel. He pointed out that while crude oil reserves are substantial, there is a notable lack of stored jet fuel, which is critical for the aviation industry.
Furthermore, investments in sustainable aviation fuels (SAF) could help meet future energy demands. In 2025, global venture capital investment reached approximately $427 billion, with a small fraction directed toward low-emission fuels. Experts suggest that redirecting similar funding toward SAF could support industry growth and energy stability through at least 2039.
Singapore officials reassured that the country has sufficient energy reserves, with no current signs of supply disruptions. However, the situation underscores the importance of strategic planning in energy policies to mitigate geopolitical risks and ensure long-term supply security.
