Energy producers around the world are feeling the consequences when water risks arise. In 2011, a massive flood in Australia reduced its coal export volume, pushing worldwide coal prices up. Corn crops in the United States Midwest were devastated by drought in 2012, contributing to higher gasoline prices.
According to BP, global energy consumption will rise 36 percent by 2030 while the Water Resources Group predicts that freshwater supplies will fall 40 percent short of demand globally. In other words, water concerns are only going to get worse and create more financial risks because of global commodity trading and energy industries’ high dependence on water.
