Analysis of The Global Politics of Energy - Book Report/Review Example

The Global Politics of Energy Introduction The instability in the Middle East and the increasing gas and oil prices as well as the emergence of new players in the oil industry including producers and consumers has led to increased alarm associated with global climate change. Additionally, the global politics of energy occupies the centre stage among foreign policies as well national security concern in the US government. US energy consumption pattern has drastically changed due to the increased population. The US has now adopted tougher strategies to ensure that its oil interests in the Middle East are secured against external forces. According to the US government as indicated in the book, Stone Age ended before the world exhausted the supply of stones and the same may happen for oil. However, US indicate that it may end up throwing some of these stones to fight for control over the remaining oil. This paper seeks to discuss the central messages by the authors of the Global Politics of Energy text book as well as how their themes intersect with the current U.S. energy and environmental policies. One of the notable themes as outlined by Daniel Yergin, one of the authors of the book is the world energy which is under stress. The author indicates that Asian financial crisis as well as OPEC strategy to increase oil prices led to the collapsing of oil prices in 1998. The issue of global demand for energy has also been covered by the authors. For instance, Yergin indicates that as the world income increases, the demand for oil has also increased. As the result of increased oil demand from the developing and developed countries, there has emerged stronger trade between the countries and the oil exporters. Four observations have been associated on the high price oil world. First, the impact of higher prices globally has been smaller than anticipated. Currently, the authors indicate that even though oil remains the most important commodity globally, its relative role in the global economy is smaller than during previous periods. Currently, the US is twice as efficient in its oil efficiency as in the 1970. The second issue covered by the authors is that high oil prices have revived resources at the national level (Dudley 17). For example, regions and countries earning large revenues from oil production have now become more confident and assertive. The third issue that touches on oil prices is that at the time oil prices are high, tight supplies stokes fear that oil is becoming extinct globally. Just like in the past, the fears underestimate the impact of technology and new regions as well as horizons. The fourth issue indicates that due to the increased oil prices, market do respond but in a slow manner. The time lag is being experienced due to economic and political factors. For example, oil companies aims at accessing new prospects. However, with the high revenues and high prices, the perceived need by the government to encourage investment goes down while decision making process becomes slow. The issue of energy security system has also been covered by the authors. The book indicates that the current energy security system was created in response to the 1973 Arab oil embargo (Phillips 41). Notably, the security system aims at handling any disruption of oil supplies from producing sources. If any serious controversy emerges between China and US in relation to the oil or gas , the authors indicate that it would not be due to stiff competition for the important resource but due to the fact that it has become notable part of larger foreign policy issue. The theme of emerging new US energy policy direction has also been covered by the authors. For example, Diana Farewell indicates that world markets have entered a period of renewed uncertainty. After undergoing a period of low prices that led to policies stagnation the anxiety for energy has returned with a vengeance. Countries such as Venezuela and Russia, have now adopted Geopolitics as a key factor that entails use of energy as a foreign policy tool. The emergence of US approaches to energy policy has been due to deep change, high anxiety and growing uncertainty in the energy sector. Apart from the supply side that many forecasters primarily focus on, the US indicates that it will have clear perspective even on the demand side of the energy market. According to the authors, by 2020, China will represent one third of total energy demand growth. Even though the US remains the biggest consumer of energy per capita, the book reports that China total demand for energy will outstrip that of the United States. Similarly, oil demand in the Middle East is also deemed to increase as the revenues from oil continue to boost the gross domestic products of the key producers. As the result of extensive use of oil, it was noted that US will remain as the country with the highest energy related carbon emissions and the highest carbon intensity in any developed country. Energy the energy policy Framework The three notable current overriding goals of US according to the authors include national security that focus at ensuring US demands for energy are met, emerging political imperative to handle the rising public concern over the global climate change and global warming and economic imperative. To create a connection between the three US goals, the book indicates two possible futures for the US energy landscape in 2020. These include business as usual and energy resilience. The theme of energy usage in US is a key note that the authors covers. The report indicates that 34% of the overall US potential to increase energy productivity lie in the residential sector. High efficiency heating and cooling systems that are adopted in new houses and existing households could deliver 25% of the US residential opportunity. In order to significant opportunities regulatory interventions that the author advocates for implementation includes changing the incentives of energy intermediaries, increasing information flows, setting tighter standards, and providing financing and other incentives to energy efficient builders. Multitude of energy threats The theme energy scope including regional outlook and a multitude of threats is also covered by the book. According to Dennis Ross, the Middle East countries have information about global oil markets, but have been slow to the challenges of global climate change. For example, they have failed to practice the culture of conservation in any way. The countries have generally viewed establishing of alternative sources of energy as a major threat to their economic well-being, while some like Saudi Arabia are actively involved in diversifying their economies. Saudi Arabia economy largely depends on oil. During the 21st century, the kingdom according to Ali al-Naimi will remain as the largest oil producer globally. One of the points to note as indicated earlier is that conservation has not been a hallmark of any country in the Middle East. The book indicates that when it comes to efficient use of energy, Middle East region ranks lowest in the world. Qatar for example is estimated to increase its oil usage by 200% in the year 2015. With the increased electricity rates subsidies by the governments almost by 90% and rising of rates there is a risk of political explosion. However, no individual is adopting change consumption patterns despite the political risks that can emanate. Energy superpowers Angela Stent indicates that over the last 4 years, geopolitical reality has taken its course. The impressive economic growth of Russia has made it to reemerge as a nation that promotes its interest through the use of soft energy power instead of hard military power. However, recently Russia has adopted assertive foreign policies. Despite the concern by European Union as far as energy security is concerned, Russia seems not to have a high priority on the impact climate change as a country that use produce and use oil extensively. In 1962 and 1982, US imposed sanctions on its allies to prevent them from exporting components that helped Soviet Russia to build Soviet gas and oil pipelines (Yeomans 37. This was based on the fact that US feared the political implications of European dependence on Russian energy. Various factors have been identified to influence Russian energy policies. These includes domestic politics that surrounding Vladimir Putin succession, move to buy energy assets in the CID states, discouraging the establishment of US backed pipelines from Caspian to Europe that pass through Russia, supporting the construction of new pipelines to Western Europe and buying many downstream Europeans assets, while restricting European participation in Russia’s upstream. Rising China and increasing oil demand China global trade as well as political, economic as well as military development has resulted to strains in the international system. Similarly, the country has indicated significant impact in the energy sector primarily due to three factors that include current high level of China industrialization and booming automotive sector, inefficiency in China energy use and increased imports of oil in its energy mix due to flat domestic reserves. China energy policy as noted by the book is to reduce energy consumption per unit of GDP by 20% and major pollutants discharge by 10% by 2010. The major companies that dominate oil sector in China include China National Petroleum Corporation, China Petroleum and Chemical Corporation, and China National Offshore Oil Company. The companies have established joint ventures with international oil companies (Inkpen and Michael 29). One of the greatest concerns by US is the going out and looking up for oil that China seems to adopt since it will create competition in the already stiff global demand for energy sources. Additionally, US raised concerns on the China oil investments as foreign policy consequences with the US seeking to isolate some states of altering their behaviors. Just like the Russia, China is deemed by the authors to become a world leading emitter of greenhouse gases very soon (Yergin 67). Due to heavy reliance on coal, China emissions are high an aspect that made it to sign the Kyoto Protocol in 2002. The national security of global climate change and impact potential of alternatives The theme of climate change has also been extensively covered by the book. There are two notable myths that propagated through the policy community. The first one indicates that climate change will be gradual and smooth since they will be based on climatology forecasts averaged over space and time. The second myth argues that climate change impacts will be moderate in industrialized nations (Shaffer 21). US, Southern Europe and Australia are key countries that are expected to be significantly impacted. The projected climate change includes air temperature during the 21st century may range from 3.2 to 7.2 °. Precipitation is also expected to significantly increase globally. Sea-level is also expected to rise by 0.09 to 0.88 meters. Sources of alternative energy and energy market innovation According to David Victor, extensive reduction of carbon dioxide and greenhouse gases will effectively slow down global warming. This call for adoption of extensive technologies will therefore become essential. Two-fifths of emissions come from electricity due to the combustion of coal. In order to attain a sharp reduction in the emissions, two strategies need to be adopted which includes replacing oil in transportation and terminating of burning coal for electricity. US emissions from electricity stands at 42%, industrial sources 15%, residential 6%, commercial 4% and transportation 33%. Major strategies include switching from coal to natural gas, use of wind power and use of nuclear power among others (Shaffer 37). In all the options that are available for US, use of nuclear seems to be the most attractive alternative as indicated by Electric Power Research Institute (EPRI). In the sector of transportation, the emissions can be addressed in various ways. These include providing bogus credit for the manufacturers of flex fuel, shifting from oil to liquid biofuels and use of conventional fuels. The importance on natural gas in energy policies The tipping point in energy and environmental consideration by policy makers and leaders can be traced in 2007. According to Robert Hefner, natural gas (natgas) has acted as the bridge to environmentally benign hydrogen. It is worth to note that due to the changes that have occurred in the energy sector, climate challenges have emanated (Roberts and Phil 51). It is thus vital to move towards the hydrogen economy. It is only through hydrogen-based economy that produces virtually no energy pollutants and releases no carbon dioxide. The authors support the use The Age of Energy Gases. According to this New Policies and the way forward Another theme that the book covers is the foreign policy paradigm. In order for the US to moderate and diversify its demand for energy, the country has adopted various strategies. These include combating Islamic extremism, managing unrest in the Middle East, combating nationalism and anti-American, reducing the likelihood that resource competition will be a major source of conflict in the future, creating new relationships, moderating threat of global warming, and reducing vulnerability to international economic pressure. The new energy paradigm has been noted to emerge in the global market (Falola and Ann 17). These include rising oil prices, wars in Iraq and Afghanistan, instability in the Middle East, taking scientific consensus that global warming is a man influenced challenge which can have adverse effects in US and globally. For example the destruction that was experienced in New Orleans due Hurricane Katrina. US government plays a notable role in addressing energy issues. These include challenging the breeding opportunities, and managing crisis in the global oil market. Intersection of the book themes with current US energy and environmental policies In order to meet the high demand of energy source in US, the United States government has adopted various strategies. The four main US goals that aim at addressing the challenges they face include first seeking the cheapest price for energy. Secondly, completing a transition to renewable energy as quickly. Thirdly, replacing all fossils and lastly developing effective sources of energy. Through National Resources Defense Council (NRDC), the US has identified how climate change is translating the country’s economy. Renewable energy that comes from natural sources has been one of the US government policies to curb emission (Read 18). Additionally, the government has established the Clean Air Act. The Act aims at cutting carbon emission that comes from the existing factories as well as transport sector. NRDC advocates for an effective as well affordable approaches to curb carbon emission from the local plants. US has also embarked on adoption of alternative sources of energy. Just like indicated by the authors, countries should adopt other sources of energy to avoid the global climatic changes that have resulted to negative impacts on the world temperatures and sea levels among others. By establishing turbines that are very large almost to the size of football fields that generates a lot of power for the country (Byron 25). This is a clear indication that the theme of use of alternative source of energy is common to the authors’ views as well as the US environmental policies. As the result of establishment of wind energy, there has been creation of job opportunities among the young US graduates in the field of engineering, construction engineering, blade manufacturers, and electricity operators among others. NRDC indicate that one typical wind farm that produces 250 MW, creates 1,079 jobs over the duration it generates power. US has also adopted protective policies that entail using military methods to protect oil resources in the Middle East and Afghanistan. Thus, the authors views on US protection of energy sources globally is in line with what the country is actually doing. My opinion Within the global oil market, there have not only been political issues that entail controlling the producers, but also the producers have come up strategies to protect themselves. For example, the establishment of Organization of the Petroleum Exporting Countries (OPEC) in 1960 was one of the notable strategies that Algeria, Ecuador, Iraq, Qatar, Angola, United Arab Emirates, Saudi Arabia and Venezuela among other countries to address oppression by the large consumers. This was one the issues that the authors indicated that they led to the oil prices collapsing in 1998. While it is important for the US to protect the world sources of energy due to its huge consumption, it should corroborate with UN to ensure fair involvement. The developing countries should also be involved in the matters relating to regulating oil production and consumption. This is based on the fact that the negative implications, which are mostly from large consumers, also affect smaller consumers to a certain level. For example, increase in global temperature is affecting all countries regardless of their level of energy consumption. This, it is my view that US should engage all countries during its making of energy policies that have impacts globally. Conclusion Based on the above discussion, it is clear that various authors have played a key role in the energy issues. Aspen Policy Books have taken notable initiatives to establishing critical new thinking on US national security policies. Through the Aspen Strategy Group conference, contrinutors such as Jeffrey Bader, Stephen Biegun, Jay Gulledge and Ivo Bozon has cleary indicated the extent to which US had impact on world energy sources and consumption. Additionally, Aspen Strategy Group conference has established US current and future energy policies. Works Cited Byron, P. Infinity's Rainbow the Politics of Energy, Climate, and Globalization. New York: Algora Pub, 2006. Print. Dudley, W. The Middle East: Opposing Viewpoints. San Diego [Calif.: Greenhaven, 2004. Print. Falola, T. and Ann, G. The Politics of the Global Oil Industry: An Introduction. Westport, Conn.: Praeger, 2005. Print. Inkpen, C. and Michael, H. The Global Oil & Gas Industry Management, Strategy & Finance. Tulsa, Okla.: PennWell, 2011. Print. Phillips, K. American Theocracy: The Peril and Politics of Radical Religion, Oil, and Borrowed Money in the 21st Century. New York: Viking, 2006. Print. Read, P. Responding to Global Warming: The Technology, Economics and Politics of Sustainable Energy. London: Zed, 1994. Print. Roberts, I. and Phil, E. The Energy Glut Climate Change and the Politics of Fatness. London: Zed, 2010. Print. Shaffer, B. Energy Politics. Philadelphia: U of Pennsylvania, 2009. Print. Yeomans, M. Oil: Anatomy of an Industry. New York: New, 2004. Print. Yergin, D. The Prize: The Epic Quest for Oil, Money, and Power. New York: Simon & Schuster, 1991. Print. Read More