Why expats will be affected by the global energy crisis

Which countries are the most vulnerable to the global energy crisis?

A fragile ceasefire, multiple failed negotiations, a blockade in the Strait of Hormuz… According to experts, this April is shaping up to be worse than the month before. The IMF and World Bank are both forecasting a slowdown in global growth. Some countries are more exposed than others, particularly those with a heavy reliance on fossil fuels.

According to a recent study by The Energy World Mag, Singapore, Turkmenistan, Hong Kong, Morocco, and Belarus rank among the five most vulnerable countries in the face of the global crisis. The main drivers: dependence on fossil fuels (oil, natural gas, coal…) and low domestic energy production. 

Singapore, still one of the most popular destinations for expat workers, tops the list as the country most exposed to the energy crisis (according to Energy World Mag). The study highlights an overwhelming reliance on fossil fuels, at close to 98%. Imports run 243% higher than domestic production. On top of that, Singapore imports the vast majority of its natural gas. The US-Israeli war against Iran is making the country's situation even more precarious.

Hong Kong, which continues to pursue policies aimed at attracting international talent, faces the same challenges as Singapore. Its imports run 176% above its production capacity, it imports 100% of its natural gas, and 90% of its electricity comes from fossil fuels.

Morocco, another expat favorite, especially among retirees, is equally exposed to the global energy crisis. According to the study, 90% of Morocco's energy comes from fossil fuels, the vast majority of which is imported (94%).

Other countries severely affected by the energy crisis

The study also flags other popular expat destinations that are being hit hard by the energy crisis: Oman, Cyprus, and South Africa. While Oman is well known as a natural gas exporter, alternative energy sources account for just 0.3% of its total energy consumption. The picture is similar in Cyprus and South Africa. After a particularly brutal 2023, South Africa, which has been dealing with power cuts since 2007, is seeing a gradual improvement. However, it's far too early to call it a recovery.

Cyprus, meanwhile, imports significantly more energy than it exports (117%). The country, which currently holds the presidency of the Council of the European Union, has called on member states to present a united front in tackling the energy crisis. The message was brought before the European Parliament by the Minister of State for European Affairs, Marilena Raouna, on March 25–26, 2026. While the minister advocates for short-term solutions tailored to each member state's situation, she also stresses the need for long-term commitments, specifically, the EU's goals around decarbonization and electrification.

But while some countries are more affected than others due to their dependence on fossil fuels, the Director of the International Energy Agency (IEA) is clear: the current energy crisis is sparing "no country." He describes the situation as comparable to "two oil crises and a gas market collapse rolled into one", a crisis already affecting millions of people around the world.

Is China the best-prepared country for the energy crisis?

The US-Israeli war against Iran is forcing governments to take emergency action, but it's also revealing each country's strategy when it comes to energy independence. Is China better prepared than the rest? By all indications, yes. Beijing didn't wait for the geopolitical situation to escalate before building up its oil reserves; instead, it has steadily grown its stockpiles over an extended period. Estimates put China's reserves at between 1.3 and 1.4 billion barrels, though some experts put the figure closer to 1.9 billion, which would exceed even US reserves (1.7 billion). 

Beijing has also accelerated its transition to renewable energy. Thanks to the Chinese giant CATL, China has become the world leader in electric batteries. According to the IEA, China accounts for more than 70% of global electric vehicle production.

Perhaps most tellingly: Beijing is standing its ground against Trump. The latest standoff over tariffs demonstrated China's economic strength. Not only has it developed its own industrial base, but it has also established itself as one of the world's leading suppliers. The result: China is less dependent on oil and less exposed to soaring prices. 

For Europe, the challenge is to break free from fossil fuel dependence. On April 13, the European Commission convened to develop crisis solutions. But Commission President Ursula von der Leyen acknowledged the scale of the challenge: "We are paying a heavy price for our excessive dependence on fossil fuels. And the hard truth for our continent is this: fossil energy will remain the most expensive option for years to come."

What is changing globally for expats

From work arrangements to daily life and transportation, every country is finding its own ways to cope with the crisis. The IEA has cataloged a range of measures governments have introduced since the conflict in the Middle East began — measures that are having a direct impact on the day-to-day lives of both locals and foreigners:

Work arrangements: Encouraging remote work

Some companies didn't need an energy crisis to see the practical benefits of remote work. Working from home eliminates the need for office space, and with it, the costs of electricity, gas, and water. Several governments have come to the same conclusion: in Singapore, the Philippines, Thailand, and Peru, employees are being asked to work remotely. In Egypt, Laos, and Malaysia, the policy applies only to civil servants. While remote work reduces costs for employers, it shifts some of that burden onto employees. Not everyone is equally equipped, either. Issues with internet connectivity, hardware, or even basic furniture (an ergonomic chair, for instance) can all pose problems. Employers are generally expected to cover their employees' remote work setup, but this varies depending on the host country's legislation and how it's enforced in practice.

Daily life: Cutting energy consumption

Air conditioning, heating, water, household appliances, electronic devices… The list of energy expenses at home is long. Here too, governments are stepping in with measures to curb consumption. Australia, Mauritius, Thailand, Bangladesh, Senegal, and Spain are among the many countries urging residents to limit their use of air conditioning. Jordan has gone further, banning air conditioning in public buildings. 

Some countries are sweetening the deal with additional incentives: Spain is offering income tax reductions for residents who invest in green home improvements (such as solar panels). France, meanwhile, is launching an ambitious national "electrification" program, starting with residential housing. New gas boiler installations will be banned from January 1, 2027. The government also aims to install one million heat pumps per year by 2030, with the goal of cutting heating costs "in half."

Transportation: Leave your car at home… especially if it's not electric

Many countries are encouraging residents to leave their cars behind and opt for public transport or "soft mobility" options like cycling and scooters. South Korea, Chile, the Czech Republic, Singapore, the Philippines, and Argentina are among those pushing this message. The Philippines is offering free bus rides for students and workers. South Korea is asking drivers to go car-free at least one day a week.

These incentives to ditch the car are sometimes paired with more restrictive measures. Sri Lanka and Slovakia, for example, have imposed fuel quotas for private vehicles. On the other end of the spectrum, a large number of countries, including Norway, Brazil, Austria, Namibia, Australia, India, Zambia, Croatia, Italy, and Portugal, have chosen to cut fuel taxes. While this may seem like a quick fix for runaway pump prices, it ultimately encourages greater fossil fuel use. Another controversial choice: a temporary return to coal, as seen in Japan, South Korea, and Italy.

Other countries, including Japan, China, Greece, Mexico, Thailand, and Hungary, are taking a middle-ground, temporary approach by capping fuel prices. France is planning to offer support to locals and expats willing to invest in an electric vehicle. Starting in June, the French government plans to subsidize 50,000 affordable electric vehicle leases (social leasing), targeting workers who spend a lot of time on the road, such as home care workers and nurses. Subsidies for electric heavy-goods vehicles are also in the pipeline. 

Reducing school and university hours or closing facilities

In Laos, the school week has been cut from five days to three. Pakistan is prioritizing online learning. Peru is also considering a broader shift to online classes. Sri Lanka is closing schools on Wednesdays. These measures do have their drawbacks, however: shifting from in-person to online learning risks increasing household electricity consumption. It also raises the issue of unequal internet access depending on location, and unequal access to devices depending on household income.

How can expats adapt to the energy crisis?

"Think very long-term." That, according to environmental specialists, should be the guiding vision for governments and individuals alike. While they acknowledge that long-term thinking is harder for individuals who are directly hit by rising fuel prices and inflation, experts urge people not to view this crisis as a one-off event, but rather as the beginning of a new way of living and consuming. This is precisely why they recommend that governments invest heavily in renewable energy to accelerate the ecological transition. 

Adaptation is something expats know well. Every new destination means encountering a different country's habits around waste sorting, traffic, and consumption. For some expats, adapting to the energy crisis means making radical changes, going as far as giving up the "serial expat" lifestyle to settle down in one city and stay there. Others are factoring in a country's environmental policies when choosing where to live abroad. Still others prefer to stay in their favorite country and do their best to keep their energy consumption as low as possible. There's no perfect model, of course — only solutions that work based on individual circumstances: the expat's own life situation and the realities of their host country.

Best practices during an energy crisis

Expats living in countries prone to drought are no strangers to awareness campaigns, and sometimes outright bans, from local authorities: take showers instead of baths, don't wash your car at home, limit garden watering, turn off the tap while brushing your teeth, and so on. The current energy crisis calls for the same kind of simple, everyday actions to reduce consumption and save money. Most of them, in fact, overlap with drought-period habits. And as environmentalists are quick to point out, these best practices should really be standard behavior year-round — crisis or no crisis.

Simple steps to reduce your energy consumption:

Washing up:

• Opt for showers over baths, and keep them short.
• Use a towel instead of a hair dryer.

Doing laundry:

• Wash clothes less frequently and use a low-temperature setting.
• Skip the tumble dryer whenever possible.

Washing dishes:

• Run your dishwasher on the eco setting.
• Cut down on hot water use, brush your teeth and wash your hands with cold water.

Heating your home:

• Replace your gas or oil boiler with a heat pump.
• Check your home's insulation to prevent heat loss.
• Use window coverings (thick curtains, shutters…) to help regulate indoor temperature.
• Install a smart thermostat.
• Turn down the heating by 1°C throughout your home.
• Insulate your hot water tank and pipes to retain heat longer, especially if the tank is in an unheated space like a garage.

Using household and digital appliances:

• Unplug appliances when not in use, especially overnight.
• Choose energy-efficient appliances.
• Use the energy-saving mode on your devices.
• Run appliances during off-peak hours.
• Lighting: switch to low-energy bulbs.

Cooking:

• Cover pots and pans to cook food faster.
• When boiling food, turn off the heat a few minutes before it's done, with the lid on, the residual heat will finish the job.