Energy Transport Costs Rise Amid Global Market Shifts
Operators face rising logistics costs as global energy markets prioritize geopolitical security over cost-efficiency.
Updated on Oct. 28, 2026 in Oil and Gas
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Eni CEO Claudio Descalzi highlighted the growing link between energy access and global economic stability, while citing the removal of 150 billion cubic meters of Russian gas as a pivotal shift for European markets. Operators should monitor how evolving trade route security and government energy policies influence baseline supply costs for international commodities.
Why it matters
Energy has transformed into a tool of geopolitical power, where supply chain security and policy choices directly dictate operational overhead. Businesses reliant on global energy markets now face increased price volatility as regions compete for limited resources and pivot away from historical supply structures.
In 2025, the U.S. captured a 58% share of EU liquefied natural gas imports, while China imported 11.6 million barrels of crude oil daily. Global shippers face additional logistics and insurance costs of $30 to $40 per barrel to move oil from the Persian Gulf to Rotterdam.
The players
Claudio Descalzi
The CEO of Eni, an integrated global energy major focused on oil, gas, and energy transition technologies.
Eni
An Italian multinational energy company with extensive operations in exploration, production, and refining across global markets.
The details
Geopolitical tensions in the Strait of Hormuz now introduce significant freight and insurance premiums that effectively tax oil transit across major shipping lanes. Meanwhile, Europe has replaced lost Russian gas through aggressive supplier diversification and demand reduction strategies. China manages its own energy stability with 4.3 million barrels of daily domestic production, though it remains heavily dependent on Middle Eastern imports for the remainder of its demand.
Timeline
2025: United States supplied 58% of EU liquefied natural gas imports.
2025: China imported 11.6 million barrels of oil daily.
2026-2030: Renewable and nuclear sources are projected to meet Chinese electricity demand growth.
Market Landscape
This report follows the structural shift initiated by the 2022 Russian gas supply disruption, which fundamentally altered global energy procurement. Current developments highlight that energy security now forces a departure from cost-optimized logistics toward state-led supply resilience.
Operators should review their supply chain exposure to maritime routes, as heightened insurance and freight costs in regions like the Strait of Hormuz will impact landed costs. Factor in that energy procurement is now a geopolitical decision that may continue to override traditional market pricing.
The takeaway
Energy security is now a dominant operational factor, requiring businesses to account for geopolitical risk in their long-term supply planning. Monitor energy-related policy decisions and maritime security alerts to assess the likelihood of further spikes in logistics and insurance premiums.
Further reading
For broader trends affecting energy prices and global supply chains, visit Oil and Gas.
Source note: This article includes information reported by The Vermilion.
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