Energy

Putin and his government seek respect, stability from next U.S. administration, panel says.

Senior Fellow of the Future of Diplomacy Project, David Ignatius examines the Navy’s energy diet that began seven years ago with an edict from newly appointed Secretary Ray Mabus, who issued five goals for radically changing how the Navy bought and consumed fuel.

The tensions unsettling the Saudi royal family became clear in September, when Joseph Westphal, the U.S. ambassador to Riyadh, flew to Jiddah to meet Crown Prince Mohammed bin Nayef, nominally the heir to the throne. But when he arrived, he was told that the deputy crown prince, a brash 30-year-old named Mohammed bin Salman, wanted to see him urgently. Senior Fellow, David Ignatius, discusses Mohammed bin Salman opportunity to transform Saudi Arabia.

The agreement to freeze production was geopolitical not economic, writes Meghan O’Sullivan in the Financial Times.

"Keep your eyes on the oil-fueled Gulf Cooperation Council (GCC) Arab states in the year ahead, because they are just starting to experience a genuinely novel, almost existential, challenge that will test the quality of their statehood and national integrity as these have never been tested before. The issue that sparks this historic reckoning of statehood and citizenship in the GCC is not Iran’s nuclear future, the fate of “Islamic State,” nor the wasteful war in Yemen. It is the sudden array of sharp fiscal adjustment measures that most GCC states have announced in the past three weeks..."

On June 23 and 24, twenty five experts met at Harvard University’s Kennedy School of Government under the auspices of the Geopolitics of Energy Project at the Belfer Center for Science and International Affairs. The group, which included experts from academia, the financial sector, government, and the energy industry, spent an evening and the following full day discussing and debating the possible energy implications of a nuclear deal between the P5+1 and Iran.

A consensus has emerged since the death of King Abdullah of Saudi Arabia that the kingdom will not change course on oil policy. This consensus is probably right, at least for the short term.  It is, however, correct for reasons other than the ones that most observers have invoked.

In this installment of “Inside the Middle East: Q&A,” Dr. Abbas Al-Mejren, Kuwait Foundation Visiting Scholar at the Middle East Initiative and Professor of Economics at Kuwait University, discusses economic development plans in Kuwait and Gulf Cooperation Council countries, including poverty alleviation and rationalizing subsidies.

With a few exceptions, the consensus emerging from last week’s inconclusive Organization of Petroleum Exporting Countries meeting is that if OPEC is not dead, it is at least in a coma.  This may be a reasonable judgment based on the group’s ability to take collective action on a production cut to bolster the price of oil in the short run.