Geopolitics of Energy

Geopolitics of Energy

1. Why is politics involved with energy?

   • Energy security is important for all governments
   • All countries are dependent on energy supplies
     • Even though there is an uneven distribution of fossils fuels
   • Most large fossil fuel reserves are under countries that are politically unstable, and therefore the energy supplies re at risk of being disrupted
   • Global energy use is increasing and fossil fuel reserves are decreasing
   • In times where energy security is threated or cant be reached there maybe threats of conflict
     • For example the US have stated that it will use military force if necessary to protect its interests in the Middle East and secure the free movement of oil.

2. Conflicts

   • The Straits of Hormuz
     • Iran is enriching uranium claiming that they are creating Nuclear energy
       • However western governments believe that they are creating nuclear weapons and have become worried about what threat this could cause to Isreal
       • As a response to this economic sanctions have been placed onto Iran as an effort to stop the enriching
     • As a response to the sanctions put in place Iran have stated that it could 'easily' close the straits of Hormuz using its navy
       • In response to this military action from the US navy will most likely happen
     • This threat from Iran is serious as 40% of the worlds oil tankers pass through the straits of Hormuz
       • Meaning that if it is closed oil prices and trades will be disrupted
   • The Falklands
     • In 1982 Argentinian forces invaded the Falklands
       • Margret Thatcher in response sent a taskforce to liberate the islands resulting in a short but bloody war
         • Argentina's lost in the war were
           • 649 Killed
           • 1,068 Wounded
           • 11,313 taken prisoner
         • The UK's lost in the war were
           • 258 Killed
           • 775 Wounded
           • 115 taken prisoner
       • The Falklands are now considerably more protected than the 68 personnel there where in 1982
         • Since the 30th anniversary tensions have increased
     • The Geopolitics behind this is the oil reserves around the Falklands, which is expected to be $168 billion worth

3. Co-operation

   • OPEC (Organisation of the Petroleum Exporting Countries)
     • Made of 12 oil exporting countries
       • Together they own 77% of all global oil reserves
       • Including Venezuela, UAE, Qatar, Iran, Iraq, Algeria, Angola, Ecuador, Kuwait, Libya, Nigeria, and Saudi Arabia
     • The main aim of the cartel is to;
       • Keep oil prices high so that money isn't lost, as oil is a finite resource
       • Still keep prices low so that countries will use the oil as a source of energy and not change to another source
   • The Kyoto Protocal
     • The aim of this was to stabilises emissions
     • Nearly all nations signed up, the notable exception being the USA
     • Developing countries such as China and India where not asked to reduce emissions
       • This was because these countries had not contributed that much to the CO2 build up in the atmosphere over the last centaury
     • Industrialised nations aimed to cut emissions by 29%
       • Some countries such as the EU made these cuts
       • However China and USA created enough emissions, to wipe out the cuts made