Geopolitics of Oil and Global Energy Security

H.E. Amb. Arne Walther Former Secretary General of the International Energy Forum (IEF) Ambassador of Norway to Japan Ministry of Foreign Affairs, Kingdom of Norway   make the most of their natural endowments. Even countries without energy resources pursue energy nationalism by seeking the resources of others as cheaply and as reliably as possible. Recent developments in geopolitics pose challenges to the existing architecture of international cooperation. New energy-related international institutions, such as IRENA in Abu Dhabi, have been set up to deal with specific aspects of international energy policy. There is no existing supra-national organization with decision making power to deal with all forms of energy, and none is likely to arise in the near future. Instead, the existing framework must be strengthened.

Why should we be concerned about the geopolitics of oil?

Governments need oil as a means topropel economic and social development, and citizens of oil exporting states expect their governments to pass on the benefits of resource extraction. And what are some of the challenges that will influence, and be influenced by, the geopolitics of oil?

Large scale commercialization of cleaner energy technologies is required. The challenges of energy security and climate change are linked-solutions to one should not exacerbate the other. source.

Investment in energy production must be made during times of abundance. Competition for energy resources among consumers

will increase, as will competition among producers of different types of energy. Investment in energy production must be made during times of abundance. Competition for energy resources among consumers will increase, as will competition among producers of different types of energy.

Energy scarcity must be dealt with. The fact that one quarter of the world's population lacks access to electricity is a geopolitical time-bomb.

The economic downturn has prompted a rethink of energy security policies. Governments are designing their stimulus packages to promote "green" energy and better suit environmental concerns.

Security is a shared producer–consumer responsibility. Transit countries also share this responsibility.

Diversity of partners and imports is widely seen as the key to energy security. While national policies of energy independence are one extreme form of energy nationalism, energy cooperation is more likely to result in a win–win scenario of energy interdependence, since it will build confidence and promote wider economic and political cooperation among nations.

When oil prices are high, importers complain about the energy nationalism of exporters, but energy nationalism has been around for a long time, and is unavoidable. All governments