Energy transition: the post-oil bill will be heavy for petrostates
An E3G study warns that the global exit from oil could bring conflicts, migrations and economic upheaval. Oil revenues currently provide more than 40% of state receipts in 17 countries, and E3G projects an 87% revenue drop for Algeria and more than 60% for Nigeria. The researchers say without international aid these states cannot absorb the shock and call for exit strategies and North-South cooperation.
Why it matters: For the energy transition, the projected collapse of petrostate revenues raises the risk of state failure and forced migration that the transition itself does not yet address.