For over a century, oil has structured the global economy. As a storable, transportable, and globally tradable resource, it shaped industrial value chains, geopolitical balances, and growth models. As uses decarbonize, electricity is taking over and becoming the structuring variable of the economic system.
In a recent analysis, Jean-Marc Jancovici, co-founder of The Shift Project, argues that electricity will become the new oil — and the new point of tension. He notes that while oil was a concentrated, flexible energy source, electricity is fundamentally different: it must be generated and consumed in near real-time, cannot be easily stored at scale, and requires massive infrastructure investments.
Jancovici highlights that the shift to electricity is driven by the need to decarbonize transport, heating, and industry. Electric vehicles, heat pumps, and industrial electrification will multiply electricity demand. However, this transition will create new vulnerabilities. Unlike oil, which can be stockpiled and shipped globally, electricity grids are regional and require constant balance between supply and demand. This makes them susceptible to local disruptions, weather variability, and cyberattacks.
The analysis warns that countries heavily dependent on fossil fuel imports may face new dependencies on electricity imports or on critical minerals for batteries and grids. Geopolitical tensions could shift from oil-producing regions to those controlling rare earths, lithium, and cobalt. Jancovici calls for massive investment in grid resilience, storage, and demand-side management to avoid electricity becoming a source of conflict.
The article concludes that electricity will not replace oil in terms of flexibility or ease of trade, but it will become the central energy vector. Policymakers and businesses must prepare for a world where electricity is the new strategic resource, with all the opportunities and risks that entails.