Why supply chain resilience is now mission-critical for energy leaders

Key insights

  • For the energy supply chain, exposure is near-universal: 95% of energy firms experienced a supply chain loss in the past year.
  • Yet the protection gap persists: Two in three firms remain only partly insured or entirely uninsured.
  • Geopolitical and material risks dominate: Trade restrictions, concentrated production hubs and geopolitical instability are driving more frequent and costly disruptions.
  • Resilience means visibility and agility: Leading firms are investing in digital tools, strategic diversification and deeper supplier partnerships to reduce dependency and strengthen oversight.

In today's increasingly electrified world, the stability of the energy sector depends on the resilience of its supply chain. While the global energy supply chain powers modern commerce, it is uniquely exposed — a handful of concentrated raw material sources, dominant producers and a few strategically critical trade routes mean that a single chokepoint can ripple across the entire industry.

Recent global disruptions, rooted in the above risks, have demonstrated that in today's interconnected world, supply chains are a strategic vulnerability for many businesses. Mitigating the impact of this volatility calls for ongoing investment in building supply chain resilience.

To better understand how these vulnerabilities are shaping the industry, Gallagher conducted its Redrawing Global Supply Chains Survey, engaging over 1,200 supply chain firms worldwide. The results highlight that geopolitical instability, trade restrictions and rising raw material costs have become the top concerns for energy companies. Nearly 95% of firms reported experiencing a supply chain loss in the past year, underscoring how these risks are actively influencing day-to-day operations and strategic decisions across the sector.

“
Global policy or production shifts can move commodity prices very quickly, with downstream ripple effects on procurement decisions, investment timing and, in some cases, operations.
Trevor Gilstrap, co-managing director, Gallagher Energy Practice

A majority of energy firms have pivoted to building buffers — forming new partnerships, preparing alternative supply routes and ramping up their insurance coverage.

Current pressure points: Three key vulnerabilities in energy supply chains

One in three firms says these risks have noticeably worsened in just the last five years. This pressure is only expected to intensify, as global economies are projected to invest $3 trillion in power infrastructure by 2035. Yet the supply side is struggling to keep pace. With the hyperscalers leaning towards investing in onsite power generation solutions,2 energy firms are competing for the same turbines, engines and specialist equipment. This competition comes as manufacturers hesitate to invest in new production lines, uncertain whether today's surge in demand will last long enough to justify the capital outlay.

The result is that even minor disruptions can have outsized impacts — delaying project timelines, raising costs and affecting long-term competitiveness. And yet, two in three energy firms remain only partly insured or entirely uninsured, leaving a significant protection gap across the sector.

What firms are doing to build resilience

Preparation

  • Boost supply chain visibility: 65% of energy firms now use supplier risk assessments and over 70% are adopting digital tools and AI for real-time monitoring and forecasting.
  • Shift from reactive to anticipatory risk management: Energy firms are strengthening preparedness through enhanced forecasting, real‑time monitoring and early‑warning tools that enable faster, more confident responses when disruptions occur.

Partnership

  • Strengthen contracts and risk ownership: Deeper contractual reviews and legal expertise are clarifying liability and building stronger recourse for delays and disruptions.
  • Diversify and collaborate: Strategic partnerships, industry alliances and broader supplier networks are helping firms reduce exposure to single points of failure.

Precaution

  • Balance stockpiling with agility: While two-thirds are building buffer inventory, many are also investing in insurance and alternative risk transfer solutions to protect against volatility.
  • Model and quantify risk: Advanced risk modeling is helping firms identify blind spots and prioritize resilient investments across all supply chain tiers.

Ready to build a more resilient energy supply chain? Read the full article for the complete playbook.

Inside the full article

  • Deep dives on supply chain blind spots: Explore how concentrated production and trade routes create hidden vulnerabilities and what leading firms are doing to address them.
  • Case studies on digital transformation: See how energy leaders are using AI and real-time data to anticipate disruptions and improve operational resilience.
  • Expert guidance on closing the protection gap: Learn about innovative insurance structures, smarter risk modeling and practical steps to align coverage with true exposure.

View the report

Sources

1"Energy Technology Perspectives- Supply Chain Risks and Industrial Competitiveness," International Energy Agency, accessed 8 Apr 2026.

2Elliot, Rebecca F, and Harry Stevens. "Why Tech Giants Are Ditching the Power Grid," New York Times, 18 Mar 2026.

Disclaimer

The information contained herein is offered as insurance Industry guidance and provided as an overview of current market risks and available coverages and is intended for discussion purposes only.

This publication is not intended to offer financial, tax, legal or client-specific insurance or risk management advice. General insurance descriptions contained herein do not include complete Insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis.

Insurance brokerage and related services provided by Arthur J. Gallagher Risk Management Services, LLC License Nos. IL 100292093 / CA 0D69293.