It is in every country's interests to become as energy secure as possible
The key to energy security lies in:
Making the greatest possible use of domestic sources of energy
Diversifying energy resources to minimise the use of fossil fuels and maximise the use of renewable sources
Ensuring guarantees of imported energy, namely reliable supplies and stable prices
Oil and
conflict
It is suggested that the middle east will
continue to be a global energy hotspot
Major
consumers
are
concerned to
ensure the
reliability of
their supplies
Some observers have claimed that this was a significant factor in the 2003 Allied
invasion and occupation of Iraq, which has the world's second largest oil reserves
Oil was also seen as a driving force in earlier armed conflicts in the Gulf region: the Iran-Iraq war of 1980-88,
Iraq's invasion of Kuwait in 1990 and the international operation to restore Kuwaiti sovereignty that followed
In Africa, major consumers, especially China, have been
competing to secure access to African oil with promises of
economic aid and military protection
On the other side of the Atlantic, previously close relations between the USA and Venezuela beca,e
strained following the election of left-wing President Chavez in 1998
He threatened to stop selling
Venezuela's crude oil to the USA
and further alienated his powerful
neighbour by supplying oil to Cuba
and China
In short, much of the conflict in the world
since the end of the Cold War has been
triggered by strategic oil considerations
There is increasing interest in
where the largest remaining
reserves of oil are located
There is increasing competition for energy, particularly oil and gas, and much of the world falls into one of two camps - the producers and the consumers
Producer countries are able to use their oil and gas resources as powerful
bargaining tools, for example by forming international partnerships such as OPEC
Attempts to reduce OPEC's power have met with some success
Indonesia has been
persuaded not to join
At the same time, there are high levels of military
tension and activity around oil-related stress points
India and China compete over energy
India's need for energy has grown in the last decade owing to high economic growth rates, lack of energy
efficient technologies, reliance on heavy industry, and widespread cases of power being stolen from the system
Power shortages and black-outs have been a problem in
India's major cities and undermine the confidence of
investors and foreign companies operating in the country
Growing car ownership has added
to India's need for oil
In 2005 the Indian prime minister said, 'China is ahead of us in
planning for its energy security - India can no longer be complacent'.
Oil imports account for two-thirds of
India's oil consumption, but only
one-third of China's
Moreover, China's proven oil reserves stand at 18 billion barrels, compared with 5 billion barrels in India
The Indian-owned Oil and Natural Gas Company (ONGC)
invested US$3.5 billion in overseas exploration between 2000
and 2005, while the Chinese owned China National Petroleum
Corporation made overseas investments estimated at $40 billion
Indian policymakers have come up with
numerous policies to address the country's
growing energy needs
In the short to medium term, India will have to rely increasingly on
imported oil and gas.
As a result, it is stepping up energy diplomacy
with states in south Asia, as well as in central Asia,
the middle east, Latin America and Africa
ONGC, for example, has invested
in offshore gas fields in Vietnam, as
well as energy projects in Algeria,
Kazakhstan, Indonesia, Venezuela,
Libya and Syria
India's quest for energy security is
impeded by its sometimes tense
relations with energy suppliers,
countries that supplies have to pass
through and energy competitors
India and China have for centuries
competed for leadership in Asia, and the
need for energy security has raised the
possibility of further competition and
confrontation in the energy sphere