Energy

During the Trump administration, the usual ways of conducting diplomacy have been upended. Many positions in the State Department have never been filled, and meetings with foreign leaders such as Kim Jong-un and Vladimir Putin have been undertaken with little advance planning. What effect are these changes having now, and how will they affect ongoing relationships between the United States and its allies and adversaries?

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.

This article considers a number of political explanations for gas policy and shows that it is usually the economic interests of big energy firms that frequently take precedence, although these are often ignored and hidden as factors.

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.

On December 1, 2014, during a visit to Turkey, Russian President Vladimir Putin abruptly announced that Gazprom was cancelling the South Stream pipeline, which would have taken natural gas from Russia through the Black Sea to Bulgaria, and through Serbia, Hungary, and Slovenia to Austria. That same day, BOTAŞ, Turkey’s state-owned pipeline company, and Gazprom signed a memorandum of understanding for the construction of a new offshore gas pipeline named Turkish Stream, which would boast a capacity of 63 billion cubic meters (bcm) per year and would run from Russia, under the Black Sea, and on to the Turkish–Greek border. In the first phase of the project, starting in December 2016, Russia agreed to supply some 16 bcm to Turkey. In the second phase, the remaining 47 bcm would be delivered to the planned hub on the Turkish side of the Turkish–Greek border.

Ever since the 1973 oil embargo, and especially since the Russian-Ukrainian gas crisis of 2006, Western policy makers have paid a great deal of attention to energy security. Yet there is no consensus as to what energy security is, what methodologies are most useful for conceptualizing and operationalizing the term, or even whether it is possible to generalize about anything as complex and contextually dependent as energy security. This enormous diversity of theoretical, methodological, and epistemological perspectives on the study of energy security complicates any assessment of the state of the field. It is, however, precisely because ‘energy security’ is such an elusive concept that academics, statesmen, and analysts of energy politics should not strive to coalesce around one precise definition.

The current Ukraine crisis is often portrayed as a contest between Ukraine's desire to adopt West European standards of living and its historical pull towards Russia's sphere of influence. 

Gazprom, Russian's prime state owned gas producer, is facing severe pressure stemming from international gas market dynamics, EU regulation and the Ukraine crisis. Slowing gas demand coupled with shifting pricing models and a persisting transit issue pose significant challenges for Gazprom's business going forward.

Existing studies show that, on average, national champions in energy-rich states tend to ‘stick around’ by maintaining strong links with their respective governments in the distribution of rents. Yet the foundations of preference formation—the particular role of national champions, their relationship to their respective governments and a limited number of third suppliers in that process—have neither been theorised nor investigated empirically in countries that are net importers of gas.