Energy Security Exam Questions

Page 1

Assess the relative importance of named players in the global supply of energy. (15)

Players could include TNCs, OPEC, Governments, consumers and others

TNCs - responsible for exploration/production + key role in securing supplies now and in the future + their investment insures future supply + Exxon Mobil (profit of $39.5 billion in 2007) successfully lobbied the US government to gain access to federal lands + Chevron Texaco lobbies on all energy issues, including opening up the Arctic National Wildlife Refuge in Alaska for oil drilling + BP and Shell have been working hard to foster a more positive public image

OPEC - oil cartel (compromised of 12 oil producing nations - Indonesia decided to leave recently), founded in 1960, key role in determining price by managing supply in its member countries + has led to price shocks in the past +

Governments - role through the tax system, drilling, and exploration license, national policies on oil and fuel + governments get large tax revenues when companies produce crude oil and gas + 2007 national government taxes accounted for 61% of the price of a liter of petrol in the UK

Consumers - key influence over price and therefore the supply/demand balance + public can turn against certain energy developments such as nuclear and wind (NIMSY)