High energy prices have hit European sectors such as aviation, shipping, and chemicals the hardest. However, the 2022 energy crisis led to reduced oil and gas dependence, and firms are now better equipped to manage price hikes
In this Article
• Energy price exposure remains highly uneven
• Energy intensity has declined
• Companies are better prepared
• How companies cope with energy price risks
Last week, we argued that Europe should be better able to deal with higher energy prices than during the 2022 energy crisis. While the exposure is not evenly distributed across sectors, we argue that even the most energy-intensive sectors are in a better position today than they were in 2022.
Energy price exposure remains highly uneven
The impact of higher energy prices varies depending on the sector and the quantity and type of energy used. Aviation and shipping, for instance, are among the most energy-intensive sectors. They are primarily reliant on refined oil products whose prices have increased. Many manufacturing sectors also consume significant amounts of energy, relying more on gas and electricity to produce heat and as a feedstock in the production process. By contrast, other sectors such as construction, retail trade, and healthcare are less energy-intensive. (....)