OF RISK
AI and Security of Critical Resources
OCEANS
Swell at the Center of Maritime Geopolitics
Raw materials such as oil, gas and critical minerals are essential for the race to develop AI and electrify the economy. Yet many of these raw materials either travel by sea or are mined from below it. As the sea-lanes become less secure, this is creating unappreciated oceans of risk.
Neil P. Brown, CFA
Intro
High STakes at Sea
Investment Strategy
Managing Director,
Research Analyst,
Jennison
64
%
17
%
of Natural Gas
Of Oil
of COAL
15
%
David Winans
Principal and Credit Analyst,
Public and Private Fixed Income, PGIM
Jay Saunders
Managing Director,
Research Analyst,
Jennison
Mehill Marku
Lead Geopolitical Analyst,
Public and Private Fixed Income, PGIM
Intro
Investment Strategy
High STakes at Sea
Power Floats: Energy’s Ocean Voyage
Fuel that is moved by sea globally
Source: International Chamber of Shipping (November 2022)
Are today’s undertows of risk a blind spot for investors?
Conclusion
Arguably, this has yet to be discounted in investment markets.
So what can investors do?
50
+
11
+
7
Attempted attacks on commercial shipping
in the six months from the start of the Red Sea crisis Oct 2023
from Jun 2024 to Nov 2024
from Oct 2023 to Jan 2025
Interception attempts between Chinese and Filipino vessels
Baltic undersea cables damaged
Just as energy supplies and critical minerals are becoming crucial for countries, so the risks of supply are rising.
Global Energy Demand and the New Geopolitical Flashpoints
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Swell at the Center of Maritime Geopolitics
Barrels of Petroleum Products per day PASS THROUGH THE
Neil P. Brown, CFA
Managing Director,
Research Analyst,
Jennison
Neil P. Brown, CFA
Managing Director,
Research Analyst,
Jennison
Jay Saunders
Managing Director,
Research Analyst,
Jennison
HIGH STAKES AT SEA
Consider investments in the supply chains for AI infrastructure and energy
including offshore minerals and the growing LNG export market.
Evaluate risk exposure to security vulnerabilities
for subsea infrastructure, contested maritime borders and shipping lanes, and potential cost increases for moving freight across oceans.
Consider investments in the supply chains for AI infrastructure and energy
including offshore minerals and the growing LNG export market.
EXPLORE THE UNDERTOWS OF RISK
Investors must look beyond prevailing narratives to capture alpha and manage risk. Download PGIM’s 2025 Global Risk Report to learn more.
SOUTH CHINA SEA
Raw materials such as oil, gas and critical minerals are essential for the race to develop AI and electrify the economy. Yet many of these raw materials either travel by sea or are mined from below it. As the sea-lanes become less secure, this is creating unappreciated oceans of risk.
Attempted attacks on commercial shipping
in the six months from the start of the Red Sea crisis Oct 2023
Baltic undersea cables damaged
from Oct 2023 to Jan 2025
Produced by Reuters Plus for
Disclaimer: The Reuters news staff had no role in the production of this content.
It was created by Reuters Plus, the brand marketing studio of Reuters. To work with Reuters Plus, contact us here.
The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters.
The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters.