Category Archives: Energy and Environment

USA Oil 3.0 | US energy experts on Europe, Russia & Ukraine

Note: I’m teaching a post-graduate course “The Global Oil System & US Policy” at JFK Institute of Freie U. in Berlin. In order to give students a feel for how US energy policy is developed–and to see the views of important US actors–I’m sending them frequent e-mails with supplemental readings and videos  from US think tanks, US government offices and from the US media on energy topics.

These are not my own in-depth analysis like I usually post on GlobalBarrel.com.  However I think they are worthwhile sharing with especially non-USA followers of my blog.  I’ll title these posts “USA OIL” plus a number to label them).  I hope these are useful.  Here’s today’s ‘optional material’ I sent to my students:

How is US energy policy developed? You might find this video of interest.

Some background: The CSIS (Center for Study of International Security) is a non-partisan (i.e., not Democratic or Republican) think tank in Washington, DC. It performs an important role in US foreign policy. Continue reading

My DGAP article | Energiewende vs. USA Shale Gas: Can German industry compete?

ImageIn Germany, the impact of the country’s renewable energy transition on the economy is a very hot topic.  Tuesday, Mrs. Merkel’s  new Minister of Economy & Environment (and chair of the Social Democratic Party), Mr. Sigmar Gabriel, declared: “We need to keep in mind that the whole economic future of our country is riding on this,” (NYT, 21Jan14).

Here’ is my article in the DGAP’s (German Council on Foreign Affairs’) IP Journal of 30Dec13  (submitted 24Nov13):

Germany’s Energiewende (renewable-energy transition) is under intense pressure both from consumers facing soaring electric bills and from German manufacturers fretting about their falling energy competitiveness vís-a-vís the US, where manufacturers are benefiting from the boom in cheap natural gas production. What should be done to address these concerns has become a major topic of the CDU-SPD negotiations forming Chancellor Merkel’s new coalition government.  

From the viewpoint of German manufacturers, there are two ways the US shale gas revolution implies a worrisome competitive challenge. First, cheaper natural gas in the US is lowering electricity and other energy costs for American manufacturers, while Germany’s continue to rise. This is especially of concern to energy-intensive industries, where the EU now has 36 percent of world capacity and the US only 10 percent. Secondly, as the US begins to build facilities for export of liquefied gas (LNG), this capacity could have a significant effect on the price of electricity and gas in Asia. … Continue reading at DGAP’s (Deutsche Gesellschaft für Auswärtige Politik e.V.) IP Journal.

A new syllabus: The USA & the global oil system: The formation of American energy policy

global_barrel_graphic_twodDuring Spring 2014, I’m teaching a post-graduate seminar in Berlin  on the USA and  the global market-centered oil system (a.k.a.”The Global Barrel”)–the syllabus sketch is below here.

While I’ve often taught seminars on “the Geopolitics of Global Oil,” the JFK Institute at Berlin’s Freie Universität had a special request: they would like their students to learn “how these policies are decided in the USA.”

For an American energy “expert”, the how of the USA’s policy-decision process is fairly familiar. However, not only for German students, but also for most US citizens, this process–whose outcome has such a profound impact on the entire world– indeed seems at best rather opaque, and, at worst, like an unseemly, vested-interest-driven and hopelessly partisan process. Continue reading

DW in Spanish || Obama y Rouhani: ¿Llegarán a un acuerdo nuclear/petrolífero?

ObamaRouhani-usip

[Note: This post on the Iran crisis is in Spanish, consisting of my written answers to the host of "Agenda" on the Deutsche Welle network--the German international TV service.] 

Hoy mi blog es en Español. Trata de la crisis nuclear entre Iran y los EEUU. Aquí abajo están mis respuestas que escribí a las preguntas del entrevistador de el programa ‘Agenda’ en Deutsche Welle, la red internacional de televisión de Alemania (con algo explicaciones adicionales).

Pregunta: Irán quiere poner en marcha las negociaciones con grandes potencias por el tema nuclear, porque creé usted que lo hace ahora?  En qué términos?

Repuesta: Pues, permítame explicarle las razones por las cuales ambos lados ahora quieren reiniciar negociaciones:

(a) Para el gobierno de los EEUU Continue reading

My talk: JFK Institute, Berlin: How “The Global Barrel” shapes Washington-EU relations

You’re invited to my lecture at The JFK Institute of North American Studies at Freie Universität in Berlin, Germany, Tuesday 6 PM. Here is the flyer, then the Abstract.  Tschüß!

ABSTRACT:

“The Global Barrel”

Today’s globalized market-centered energy system defines Washington’s relations with the EU, Japan and OPEC states Continue reading

Listening to Saudi Oil Minister Al Naimi at CISIS in Washington: Bad news for Venezuela & Iran?

Al-Naimi at CSIS

Al-Naimi at CSIS

 Last week in Washington, I attended a talk by Saudi Oil Minister and head of Aramco, Ali al-Naimi, at CSIS.  Energy and foreign policy veterans from Daniel Yergin to Brent Scowcroft and Dr. James Schlesinge were on hand to hear al-Naimi’s views. You can read the transcript here, or watch the video embedded below.

Al-Naimi’s contrasted his central theme: “the enduring relevance of oil,” to the predictions made for many years by the adherents of “peak oil”–a theory that he said had itself “peaked in 2009” and has now been shown to be “utterly incorrect.”

Bad News for Venezuela and Iran?

Listening to him describe the global impact that the U.S.A. tight-oil “revolution” will have on the market,  plus with Alberta’s heavy oil and so many other new sources from around the globe all coming to market, brought to my mind images of the 1980′s.  The 1980′s were the “lost decade” in Latin America. It strikes me that, if he’s right about the trajectory of the global oil sector, the consequences for OPEC’s “price hawk” faction would be sobering. Continue reading

Problems of the Global Oil System: Why teach about oil?

Oil pumpjacks in Venezuela (TalCual Digital, Caracas)

Recently, I sent off a proposal for a new course, “Problems of the Global Oil System.”  The introduction asks rhetorically: “Why Teach About Oil?”

Debates in the U.S. over oil and energy policy often resemble election campaigns, fought out with factoids and unconstrained partisanship.  Of course, deciding technical-scientific policy is inherently political.  But there are politics and there are politics.  In the proposal, I argue that  “Oil’s persistent domestic & global centrality” will extend at least another 25-to-30 years, so teaching about oil is necessary to  empower students to participate in forming energy policy democratically.

But, do the facts actually support the conclusion that petroleum’s central role in society–in both domestic and international affairs–will persist for at least 25-30 years hence?  Here is the brief argument in the introduction (and the conceptual outline of the course) for your consideration: Continue reading

I’m cited: “(BN) Chavez Buys Enemy U.S.’s Fuel While Lauding Iran”

Presidents Chavez and Ahmadinejad met in Caracas in January (here) and June 2012

I was cited a number of times yesterday in a Bloomberg News article by Nathan Crooks in Caracas and Paul Burkhardt in NYC.  I reprint it below because the authors’ research further illustrates an issue I’ve often stressed here.

That is: in spite of President Chavez’ rhetoric promising to stand by Presidents Ahmadinejad of Iran (and Assad of Syria, and previously Qaddafi of Libya), he is actually in no position to withstand the U.S. sanctions that could be imposed on Venezuela for aiding Iran. Continue reading

China’s Iran-Oil Import Angst – Part II: 2012 Following 2010 Script

Misinterpretations of China´s Opposition in 2010 and 2012

(Continued from Monday, 13 Feb 2012) The last time the Obama Administration wanted new sanctions on Iran, in 2010, Beijing started out loudly opposed, threatening to block the sanctions at the U.N., something Beijing had never before seriously threatened.

President Obama thanked Vice Premier Xi for China's support on Iran oil sanctions. NYT photo by Doug Mills, 14Feb12.

Continue reading

China’s Iran-Oil Import Angst. Part I: U.S.-Saudi Cooperation

Thus far, Beijing has found little wiggle room to resist the U.S.-E.U.-Saudi common vision that severe sanctions be used to shut down the bulk of Iran’s oil exports by June.

US Treasury Sec Geithner in Beijing with Vice Premier Wang Qishan. NYT Photo Andy Wong

The reality being revealed in this confrontation is that China has much less ability to maneuver independently in the global oil system—whether in the market or in diplomatic and military matters—than most analysts would lead us to believe.

Preface: What are Washington v. Beijing´s strategic objectives here ? Continue reading