TOP 50 EXECUTIVES

• LISTS: BBJ Research (research@bbj.hu)

• CONTRIBUTORS: Annamária Bálint, Kester Eddy, Mihály Kovács, Robin Marshall, Bálint Szőnyi

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Foreword

Even in “normal” times (does anyone out there remember what that was like?), it is all but impossible to overstate the importance of energy. It gives us the warmth and light to transform brick and concrete shells into homes. More importantly, for a business publication, it is the lifeblood that powers our economy.

These, though, are not “normal” times. The drive toward a netzero future was already throwing up any number of challenges for business leaders. Should we switch to renewables today or wait until tomorrow, when the price point for the technology will be better? What form of renewable should we opt for? What happens if the wind doesn’t blow or the sun doesn’t shine? When will storage batteries be an achievable part of the renewables infrastructure? On top of all these open questions, came Russia’s war in Ukraine and the resulting energy crisis. If COVID had been a bad time to be in the energy industry (especially for the upstream producers of the raw material), the energy crisis has been outstandingly good.

The combined effect of these two events, of net-zero and the energy crisis, which have at least the appearance of simultaneously pulling us in diametrically opposed directions, is that everyone now thinks a heck of a lot more about their energy, where it comes from, and how much it costs. Energy security, a concept that American diplomats, in particular, have warned European leaders they must engage with, often with a palpable sense of frustration, is at last front and center. All of that cheap Russian gas and oil finally looks less attractive.

The Hungarian approach has been interesting. Those with long memories may recall a time when much of Russia’s

Europe-bound fossil fuels went via Ukraine. A payment and delivery dispute between these two could, and did, have repercussions for European supplies. The Hungarian response was to build interconnectors with as many of its neighbors as possible, so oil or gas could be rerouted if necessary. Government members have often touted that diversity of supply as a great success. More than one U.S. Ambassador has noted that how it gets into Hungary is not the real problem if it all comes from the same source.

Landlocked Hungary would rightly point to the fact that the realities on the ground do not always marry up with the grand ideals. Like America, Hungary has oil and gas beneath the ground, but nothing like enough to supply all its needs. Affordable alternatives to Russia simply have not existed. LNG shipped to Croatia is a start, but neither as efficient nor as cost-effective; facilities elsewhere in Europe will be the next big step. Azerbaijan may be a game-changer, and Romanian Black Sea supplies would undoubtedly help if and when they come online. But, Croatian LNG aside, none are available today. Be that as it may, the reality of energy security is now excepted by all. Finding a path (more likely paths) to a solution is the next stage.

The energy industry is a vitally important part of the Hungarian economy and fully deserves deeper attention. This publication seeks to give it just that. We trust you find it useful and useable.

Robin Marshall Editor-in-chief Budapest Business Journal