Energy News Today

The New Geopolitics of Energy

It is not hard to understand why people dream of a future defined by clean energy. As greenhouse gas emissions continue to grow and as extreme weather events become more frequent and harmful, the current efforts to move beyond fossil fuels appear woefully inadequate. Adding to the frustration, the geopolitics of oil and gas are alive and well—and as fraught as ever. Europe is in the throes of a full-fledged energy crisis, with staggering electricity prices forcing businesses across the continent to shutter and energy firms to declare bankruptcy, positioning Russian President Vladimir Putin to take advantage of his neighbors’ struggles by leveraging his country’s natural gas reserves. In September, blackouts reportedly led Chinese Vice Premier Han Zheng to instruct his country’s state-owned energy companies to secure supplies for winter at any cost. And as oil prices surge above $80 per barrel, the United States and other energy-hungry countries are pleading with major producers, including Saudi Arabia, to ramp up their output, giving Riyadh more clout in a newly tense relationship and suggesting the limits of Washington’s energy “independence.”

Proponents of clean energy hope (and sometimes promise) that in addition to mitigating climate change, the energy transition will help make tensions over energy resources a thing of the past. It is true that clean energy will transform geopolitics—just not necessarily in the ways many of its champions expect. The transition will reconfigure many elements of international politics that have shaped the global system since at least World War II, significantly affecting the sources of national power, the process of globalization, relations among the great powers, and the ongoing economic convergence of developed countries and developing ones. The process will be messy at best. And far from fostering comity and cooperation, it will likely produce new forms of competition and confrontation long before a new, more copacetic geopolitics takes shape.

Talk of a smooth transition to clean energy is fanciful: there is no way that the world can avoid major upheavals as it remakes the entire energy system, which is the lifeblood of the global economy and underpins the geopolitical order. Moreover, the conventional wisdom about who will gain and who will lose is frequently off base. The so-called petrostates, for example, may enjoy feasts before they suffer famines, because dependence on the dominant suppliers of fossil fuels, such as Russia and Saudi Arabia, will most likely rise before it falls. And the poorest parts of the world will need to use vast quantities of energy—far more than in the past—to prosper even as they also face the worst consequences of climate change. Meanwhile, clean energy will come to represent a new source of national power but will itself introduce new risks and uncertainties.

These are not arguments to slow or abandon the energy transition. On the contrary,…

Read More: The New Geopolitics of Energy

2021-11-29 23:21:26

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy
%d bloggers like this: