Geopolitics of Energy: Political Strategies, Conflicts, and Cooperation | Teen Ink

Geopolitics of Energy: Political Strategies, Conflicts, and Cooperation

August 20, 2023
By Rineirows BRONZE, Salvador, Other
Rineirows BRONZE, Salvador, Other
1 article 0 photos 0 comments

Introduction:

Understanding the geopolitics of energy is essential for comprehending contemporary international relations. In a world deeply concerned about the environment in the 21st century, efficient resource management has become crucial for human survival. Energy resources are pivotal in power dynamics, often leading to territorial conflicts. This article delves into how energy resources shape global interactions, fostering both collaboration and conflict.

The Significance of Energy Resources

Throughout history, safeguarding raw materials has been pivotal for civilizations' prosperity. While food and extractive goods were once paramount, the industrial revolution brought energy generation to the forefront as a fundamental resource. The inclusion of coal in the global energy cycle boosted trade and capital flow.

In the 20th century, energy generation options diversified significantly. Alongside coal, natural gas and oil vie for prominence, with the latter often triggering territorial disputes due to its high energy density. Global wealth distribution and purchasing power of nations are intrinsically tied to these resources.

Undeniably, some nations heavily rely on natural resources, as seen in parts of sub-Saharan Africa with inadequate energy distribution. Yet, countries like Switzerland and Singapore, wealthy despite a scarcity of raw materials, underscore that economic advancement is attainable. However, diversifying income sources is imperative, given the energy demands of daily life and the need for external support.

In contrast, countries heavily dependent on scarce resources face risks. Saudi Arabia, where according to OPEC (2021) 24% of GDP and 70% of exports come from oil, is vulnerable to sudden price drops.

Energy resources are pivotal for vital activities such as industry and agriculture. Territories with abundant reserves and high energy productivity enjoy lower production costs.

Strategic resource management is pivotal on the global stage. According to Barros (2020) Norway's economic ascent through judicious oil reserve management has been beneficial to society.

However, embracing external renewable energy resources is pivotal. Renewable energy must be integrated into national strategies, whether by state-owned enterprises or multinational corporations to ensure sustainable production.

Resource-based policies significantly impact international relations and often lead to conflicts. Diversifying the energy mix is imperative, encouraging investments in secure and sustainable sources.

Energy geopolitics remains a central factor in international relations, exerting influence over cooperation and conflict. Global leaders must acknowledge the significance of resources for economic and environmental stability. Understanding these dynamics is crucial for fostering a cooperative and sustainable future.

Conflicts and Rivalries over Energy Resource Ownership

Disputes over natural resources have been a recurring theme in history. Wars frequently arose from the pursuit of fertile territories. In modern times, colonial expeditions fueled raw material extraction, often causing conflicts with indigenous populations. Today, economic power remains a persistent underlying motive for conflicts.

According to UN News (2019), at least 40% of internal conflicts are linked to natural resources, including timber, diamonds, and arable land. These rivalries stem from greed or human necessity. Inger Andersen points out that "state failures and civil wars pose significant global risks". While natural factors might not be the sole cause, they are frequently intertwined.

Conflicts in the Middle East vividly illustrate resource struggles, particularly about oil. The wars in Syria and Iraq, along with issues in the Gulf, South Sudan, and the Iranian coup, are underpinned by resource exploitation.

Energy sources also hold geopolitical significance. Russian natural gas, for instance, averts energy crises in needy nations like Germany and Switzerland. The recent Ukraine conflict resulted in a shortage of Russian natural gas exports to the European Union, underscoring the energy trade's importance.

According Nilsen (2022), Project Willow is an oil exploration initiative in Alaska, has provoked controversy among environmentalists. The potentially impactful extraction, aiming to yield 600 million barrels of oil, presents a dilemma: it could boost US economic growth while severely damaging the environment.

The competition for energy resources remains entrenched in history. Economic power frequently fuels conflicts. While certain energy sources can foster peace, projects like the Willow Project emphasize the need to strike a balance between economic growth and environmental preservation.

Cooperation and Alliances for Energy Development

The resolution of energy crises often hinges on forming alliances to efficiently generate and distribute energy. Multilateral cooperative agreements tend to outlast armed conflicts, which is especially pertinent in the context of energy control.

Research and investment in energy sources are pivotal for nations' advancement. However, implementing these strategies proves challenging for resource-poor and financially limited countries. Consequently, alliances between nations become indispensable for regional development. For instance, jointly harnessing vast solar energy areas in exchange for financing and trade accords presents a strategy for mutual enrichment.

Economic blocs and transnational organizations play pivotal roles. The European Union strives for social welfare and economic stability among its members. OPEC (2019), in turn, regulates oil prices to benefit producers, consumers, and investors. IRENA  (2019), the International Renewable Energy Agency, seeks global collaboration to facilitate nations' energy transition. The IEA, the International Energy Agency (2022), advocates sustainable and secure energy usage.

Multilateral accords are critical for social development, especially in resource-scarce settings. The formation of groups, alliances, and economic blocs also contributes to governments' political stabilization, particularly when nations collaborate for individual progress.

Agreements also govern environmental exploitation. The "Paris Agreement" stands as an example, outlining greenhouse gas reduction and the promotion of renewables like wind and solar power. Although utilizing polluting raw materials yields ample energy, the environmental impact is undeniable.

Direct country-to-country connections for energy resource usage can yield shared benefits. Electricity grids and gas pipelines, for instance, can benefit entire regions for a fee. However, proper management of these connections is vital to prevent unforeseen energy security shortages.

According to Al Jazeera news (2023), Putin promised financial support and debt cancellation as part of relations between Russia and African countries. In addition, promise to provide energy, grains, and weapons to certain African countries in 2023 raises queries. Is this support a stimulus for underdeveloped nations' advancement or an imperialistic policy exploiting these countries' resources?

Energy Security Question

Power dynamics have perennially played a pivotal role across various domains, including energy generation. Distinguishing between multilateral and unilateral relations is paramount. Since the colonial era, natural resources have wielded considerable influence in determining agreement flexibility. Interruptions in national energy production, particularly when imports are the primary source, jeopardize energy security.

Dependence serves as a pivotal factor in power relations, enabling governments with substantial energy efficiency to exert influence. Today, energy is indispensable for all activities, rendering resource unavailability a hindrance to socio-economic development. In contrast, A report by Galileo magazine (2021) revealed that 72% of the world's population lives in countries with scarce natural resources, implying inequality and resource competition.

In the quest for control, developed countries often leveraged their influence to manipulate regions with limited commercial diversity, encompassing portions of sub-Saharan Africa, Oceania, Asia, and politically vulnerable governments.

The utilization of debt traps emerged as a primary means of swiftly gaining control. Non-transparent loans targeting specific sectors present a facade of mutual benefit while undermining economic and energy diversification. Hence, prudence when entering agreements involving a nation's financial situation is essential.

An economics article in UOL (2022) explores the implications for Europe if Russia cuts off gas exports. Given the aforementioned inquiry, Russia doesn't solely exhibit imperialism; however, vigilance remains imperative. Nations like North Macedonia and Moldova, heavily reliant on Russian gas, grapple with evident energy insecurity.

Consequently, transitioning to renewable, resource-independent energy is indispensable. Sweden, Norway, and Switzerland stand as exceptional examples of energy efficiency, pioneering the energy transition through public-private partnerships, robust infrastructure, and sound public policies.

Energy insecurity stemming from international agreement dependence plays a pivotal role in contemporary geopolitics and can serve as the cause or consequence of conflicts. This influence shapes government decisions, constraining sectors such as large-scale agriculture and industry.

Beyond politics, relying solely on specific sources entails risks. Countries heavily reliant on hydroelectric plants, for instance, could face crises during rainfall shortages. Additionally, regions with prolonged winters and limited sunlight may encounter energy shortages due to inadequate solar production.

According to Papoca (2023), energy security is a crucial issue, with various actions being taken in Brazil to guarantee supply. The solution lies in decentralized energy generation, even though local supply can still be affected by natural disasters. Consequently, cooperation alliances should be contemplated to avoid political entanglements.

The Role of Multinational Companies in Energy Geopolitics

Globalization assumes a pivotal and distinctive role within the realm of transnational corporations, establishing an autonomous relationship between governance and production means. Energy availability is intrinsically intertwined with industry and multinational emergence. Notably, the prevalence of large corporations in underdeveloped nations, where labor regulations are lax and resources abound, is striking.

Resource-poor nations often feature companies heavily reliant on labor. The industrialization process of the Asian tigers exemplifies this trend. South Korea, for instance, lacked substantial raw material reserves yet made significant strides through international incentives.

Simultaneously, capitalist companies traversing borders constitute the bedrock of the 21st-century economy, playing an undeniably vital role in national development. However, responsible governmental oversight is essential to avoid excessive pollution and unnecessary exploitation.

Environmental devastation in resource-rich regions stands as an issue necessitating government intervention. Sustainable protective laws are indispensable when multinational corporations like Shell enter a nation. These regulations avert resource depletion while providing benefits and incentives for these industries to remain.

It's unequivocally clear that the private sector is pivotal within the capitalist context. The responsibility for judicious energy resource usage shouldn't rest solely on the state but should encompass all economic system participants.

Outlook and Challenges

Following in-depth analysis, adopting measures to enhance the geopolitical landscape is imperative. Given the potential for energy crises, conflicts, and alliances, appropriate strategies are vital for fostering proper development.

In the context of current climate change, expanding the focus beyond human interests to encompass the environment is pivotal. To avert climate degradation, immediate adoption of renewable energy sources like wind, hydroelectric, and solar power is fundamental. Additionally, these alternatives contribute to greater national energy diversification, mitigating potential future crises.

The contemporary era has borne witness to technological advancements and innovations offering myriad global-scale benefits. These innovations enable reduced dependence on external energy sources and optimized utilization of scarce resources.

The geopolitics of energy will continue to occupy a central role in international relations, shaping cooperation and fomenting tensions between nations. Strategic access to energy resources can significantly determine countries' power and influence in the modern world. Grasping the geopolitical intricacies tied to energy is pivotal to ensuring a more sustainable and collaborative future for our planet.

 

 

Bibliography:

 

1. OPEC. (2023). OPEC: Saudi Arabia. Retrieved August 18, 2023, from opec.org/opec_web/en/about_us/169.htm

2. Barros, P. F. de. (2023). A História Econômica da Noruega. Retrieved August 18, 2023, from dunapress.com/2020/08/28/a-historia-economica-da-noruega/

3. Pelo menos 40% de todos conflitos internos estão relacionados com recursos naturais. (2019). Retrieved August 15, 2023, from news.un.org/pt/story/2019/11/1693501

4. Nilsen, E. (2023). The Willow Project has been approved. Here’s what to know about the controversial oil-drilling venture | CNN Politics. Retrieved from edition.cnn.com/2023/03/14/politics/willow-project-oil-alaska-explained-climate/index.html

5. OPEC. (n.d.). OPEC: Home. Retrieved from opec.org/opec_web/en/

6. IRENA. (n.d.). International Renewable Energy Agency (IRENA). Retrieved from irena.org/

7. INTERNATIONAL ENERGY AGENCY. (n.d.). IEA - The global energy authority. Retrieved from iea.org/

8. Putin promises grain, debt write-off as Rússia seeks Africa allies. (2023, July 28). Retrieved from aljazeera.com/news/2023/7/28/putin-promises-grains-debt-write-off-as-russia-seeks-africa-allies

9. 72% da população mundial vive em países com recursos naturais escassos. (2021, April). Retrieved August 15, 2023, from revistagalileu.globo.com/Ciencia/Meio-Ambiente/noticia/2021/04/72-da-populacao-mundial-vive-em-paises-com-recursos-naturais-escassos.html

10. O que acontece com a Europa se a Rússia cortar a exportação de gás? (2022, May 11). Retrieved August 15, 2023, from economia.uol.com.br/noticias/redacao/2022/05/11/o-que-acontece-com-a-europa-se-a-russia-cortar-a-exportacao-de-gas.htm

11. Papoca, R. (2023). O que é segurança energética + principais ações no Brasil. Retrieved August 15, 2023, from blog.esferaenergia.com.br/mercado-livre-de-energia/seguranca-energetica


The author's comments:

This was my first article (Which isn't just an essay). So, if there's anything wrong with it, i'm really sorry! I hope you like it :)


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