Middle East & North Africa

The small open economies of the Gulf and Southeast Asia are pioneers in the establishment of

Sovereign Wealth Funds (SWFs). The SWFs of countries like Qatar and Singapore are among the

world’s largest in terms of total asset size relative to Gross Domestic Product. This article looks

at the different compulsions behind the setting up of SWFs by small open economies.

For decades, fears of energy scarcity drove American energy diplomacy. The dependence of the global economy on oil, and America’s need to secure ever-growing quantities of this commodity, underpinned complex networks of alliances and intensive diplomatic endeavors. An atmosphere of ever-increasing global competition for resources made these labors all the more urgent and highstakes. Today, in an age of energy abundance, many anticipate that the new US energy prowess will render such efforts obsolete and pave the way for US disengagement in the world. Yet a sober look at reality suggests that this should be far from the case.

The world's energy system needs rebuilding. The Paris agreement to keep global warming “well below 2 °C above pre-industrial levels” demands that we replace fossil fuels with solar, wind, geothermal and biomass energy. The price tag is vast: investing US$120 trillion in energy projects between 2016 and 2050, at twice the current annual rate of $1.8 trillion a year, will deliver a 66% chance of achieving the Paris target. We must halve oil production and stop using coal to produce electricity.

Decision-makers often seek to design policies that support sustainable development. Prospective evaluations of how effectively such policies are likely to meet sustainability goals have nonetheless remained relatively challenging. Evaluating policies against sustainability goals can be facilitated through the inclusive wealth framework, which characterizes development in terms of the value to society of its underlying capital assets, and defines development to be potentially sustainable if that value does not decline over time.

Many energy consumers, and even analysts and policymakers, confront and frame energy and climate risks in a moral vacuum, rarely incorporating broader social justice concerns. Here, to remedy this gap, we investigate how concepts from justice and ethics can inform energy decision-making by reframing five energy problems — nuclear waste, involuntary resettlement, energy pollution, energy poverty and climate change — as pressing justice concerns.

Professor Meghan O'Sullivan was interviewed on November 15th, 2015 for a Wall Street Journal special section on energy, discussing the rapid transformation of the American energy sector in light of low fuel prices, new climate policies and other factors.

States have long worried that their dependence on oil gives producers a means of coercion. The oil market, however, is far larger and more integrated than it used to be. The potential for coercion differs across a series of distinct market segments. In this varied market, the United States remains the dominant force.

While the threat of "resource wars" over possession of oil reserves is often exaggerated, between one-quarter and one-half of interstate wars since 1973 have been connected to one or more of eight distinct oil-related causal mechanisms. Understanding these mechanisms can help policymakers design grand strategy and allocate military resources.

U.S. scholars and policymakers commonly worry that a lack of "energy security" hurts U.S. national security, yet few have analyzed the links between states' energy requirements and the probability of military conflict. An investigation of these links identifies threats to U.S. national security flowing from other countries' consumption of oil, rather than just U.S. consumption. Furthermore, while many of the security threats associated with Persian Gulf oil have decreased, new oil-driven dangers are emerging in Northeast Asia.