internal consumption engines (ICE), are rapidly becoming niche power sources sodium batteries and solar pv, will take over most of the worlds grids quite quickly now, there are no bariers left any country that resists will be left behind and suffer the consequences of uncompetitive costs
There are many examples across the world where countries are doing very sub optimal things that simply don't make any economical sense. Germany has a lot of industry close to where coal used to be mined that is very energy intensive that is now being powered with expensive gas. Likewise, instead of using electrical heat pumps, most of their buildings still use gas boilers. Worse, they are not even fixing that in new buildings they build.
The UK has lots of wind power. But it prices its electricity based on the highest cost generation on the grid, which is usually gas. So, data centers get built close to London because the electricity isn't any cheaper in Scotland where all the clean renewable power is. And since they have too much of that, they actually just curtail it instead of giving a little discount to the locals (or just pricing it negatively and paying them to consume the power). So, like the Germans, the Scots also use gas for heating their houses.
Germany has a few million apartment blocks. They pretty much all run on gas. There is no plan to fix that. You might have noticed that gas is really expensive and has to be imported in LNG form as of a few years ago. That's costing many billions per year. Even if they would build gas power plants and converted all those buildings to use electrical heat pumps, it would still save billions in less imported gas (heat pumps are amazingly efficient). And of course they have a lot of frequently curtailed wind power as well. Germany is too busy spending money on gas to fix the problem that they need so much gas.
Policy changes could straighten inefficiencies like these out in a relatively short time. But those are controversial because high prices mean high profits for incumbent companies. So governments are dragging their feet and are not doing anything about this. Those big companies are lobbying to protect their profits. And the fossil fuel industry is cheering them along and pitching fantasy schemes about hydrogen to delay their inevitable demise. The public spending on that is insane if you understand how piss poor the economics around hydrogen are. Incentives are completely misaligned, policy prevents a lot of otherwise very rational/economical action, and a lot of that is perpetuated by companies that thrive on the expensive status quo and the politicians they have in their pocket.
The current crisis in the Gulf is probably going to accelerate a lot of policy changes by quite a lot. Nothing like a good crisis to force some changes.