Credit: CNNMoney, 9 August 2016
Mr. Trump promises he’d use the USA’s shale-oil revolution to deliver “complete” independence from foreign oil, telling voters in May: “Imagine a world in which our foes and the oil cartels (sic) can no longer use energy as a weapon. Wouldn’t that be nice?” But, he is confusing two quite distinct things:
“Energy independence” – in the sense of the USA producing more oil than the country consumes – is indeed possible, even “tantalizingly close” as this CNNMoney article (Aug. 9, 2016, by Matt Egan) makes clear, citing myself and other experts. For clarity, I’ll call this “net oil-exporter status.”
However, Donald Trump asks us to “imagine” he can use this net oil exporter status, to make the US independent of the global oil market and oil in geopolitics where our “foes” and “cartels” have leverage. Continue reading
Posted in Energy and Geopolitics, Energy and Geostrategy, Gas globalization, Global Oil Market, Global Oil system, international relations, Iran sanctions, Iraq, Iraqi oil, Libya, oil, Oil prices, Oil supply, OPEC, Resource conflicts, Russia, Sanctions, Saudi Arabia, shale gas, shale oil, The USA, U.S. oil, Ukraine, Uncategorized
Tagged Ali Al-Naimi, Energy, geopolitics, Iran, Iraq, Middle East, natural gas, Obama, oil sector, OPEC, Persian Gulf, United States
CNN 20 July 2016
The oil market remains glutted, with price in the mid-$40’s. Despite furtive hopes over recent weeks by the business press about “imminent re-balancing” of global supply v. demand and about “draw downs” of record-high global storage inventories, data reveal only incremental re-balancing has occurred since fall of 2014 when this all began. (And, from November 2014, the Saudi’s responded by fighting for their market-share rather than for boosting price, which would have been impossible for OPEC to do on its own given the huge supply glut.)
Posted in Energy and Geopolitics, Gaddafi, Global Oil Market, Global Oil system, Libya, Oil prices, Oil supply, OPEC, Saudi Arabia, Uncategorized
Tagged Libya, Middle East, oil market, oil prices, oil sector, OPEC, Saudi Arabia
Presidents Rouhani of Iran and Putin of Russia holding discussions
(AICGS Analysis, by Tom O’Donnell) Since Russia’s president, Vladimir Putin, decided to annex Crimea and back east Ukrainian separatists with troops, many have worried he might use his “energy weapon” to counter U.S.-EU sanctions, as Russia supplies around a third of the EU’s natural gas imports. But what about Russian retaliation in the oil sector?
That’s hard to imagine. While gas is marketed in bi-lateral, pipeline-mediated relationships, oil is not. It’s liquid, fungible, and marketed in a unified open market—“the global barrel” [and name of this blog, T.O’D.]—which means there are no bi-lateral oil dependencies.
So, when EU leaders were cajoled by Germany’s Angela Merkel into joining the United States in applying sanctions, Russia could do little to retaliate from within the oil sector. In reality, it is the EU and the U.S., not Russia, that have an “oil weapon” in hand. And, the flurry of Russian oil diplomacy with OPEC, Iran and China over the past couple of weeks has a distinct whiff of desperation to it. Continue reading
Posted in AICGS, Aramco, China, Energy and Geopolitics, Energy and Geostrategy, Euroepen Union, Gas globalization, gas internationalization, Germany, Global Oil Market, Global Oil system, international relations, Iran nuclear, Iran sanctions, negotiations, Obama, Oil prices, OPEC, Putin, Rouhani, Russia, Sanctions, Saudi Arabia, shale oil, The USA, Ukraine, Venezuela oil
Tagged Ali Al-Naimi, Berlin, China, European Union, geopolitics, Germany, Iran, Middle East, natural gas, oil sector, OPEC, Putin, Sanctions against Iran, Saudi Arabia, United States, Venezuela, Vladimir Putin
Falling oil prices are not a US-EU-Saudi plot against Russia, Iran and Venezuela… though their effect is certainly not unwelcomed..Foto: REUTERS/Jim Bourg
[Printed in IP Journal, German Council on Foreign Affairs] Pin-pointing the reason for the dramatic – and continuing – fall in the price of oil is relatively easy: OPEC held its 166th conference in late-November 2014 to decide on a strategy to address oil prices, which had been falling at five to ten percent per month since July. Rather than pursue a production cut
Posted in Chavez, Energy and Geopolitics, Euroepen Union, Global Oil system, international relations, Iran nuclear, Oil prices, Oil supply, OPEC, PDVSA, Persian Gulf, Putin, Resource conflicts, Russia, Sanctions, Saudi Arabia, The USA
Tagged Ali Al-Naimi, Business and Economy, Chavez, Energy, geopolitics, Iran, Middle East, oil sector, OPEC, Petróleos de Venezuela, Rafael Ramírez, Saudi Arabia, United States, Venezuela, Washington
If you are in Washington, DC, this historical overview of the US-Iran Crisis and the role of oil might be of interest:
Posted in Global Oil Market, Global Oil system, international relations, Iran nuclear, Iran sanctions, Iraq, negotiations, Obama, P5+1, Persian Gulf, Resource conflicts, Rouhani, Sanctions, Saudi Arabia, Uncategorized
Tagged DC, Energy, historical overview, Iran, Iraq, Middle East, OPEC, Washington
Kiss between Rafsanjani and Saudi ambassador stirs controversy Former Iranian President, Ayatollah Hashemi Rafsanjani (R) exchanges greetings with the new Saudi Arabian ambassador to Iran, Abdulrahman Bin Groman Shahri in Tehran, Al Monitor, April 22, 2014. (photo by Twitter/ISNA)
Appreciation: I am honored to again be invited by my Iranian colleagues in New York, Professors Reza Ghorashi, Hamidah Zangeneh and Hamid Sedghi, to join this panel and discuss the geopolitics of US-Iranian relations. And, my thanks to Prof. Sedghi for reading my paper as I am teaching in Berlin and cannot be with you today. I only ask that those who dislike my message, kindly refrain from shooting the messenger.
The US-Iran nuclear confrontation finally appears close to resolution. This is because both Presidents Obama and Rouhani desire a diplomatic solution, and both countries need to move on. With such an agreement, it is possible that relations will slowly become normalized.
Of particular note—as a direct consequence—are the recent secret negotiations between Iran and Saudi Arabia towards a rapprochement. These were initially facilitated by Oman (e.g. see reports here, here, and here). Until very recently the Saudis had remained fiercely opposed to any US deal with Iran. However, the Saudi’s are realists, and know when it is time to adapt. Figure 1. is a photo of kisses exchanged on 22 April between ex-President Rafsanjani of Iran and King Abdullah’s ambassador to Iran, which caused quite a stir in the region. Agreements reached in these recently revealed negotiations have already significantly affected the presidential-succession crisis in Lebanon, sectarian conflicts in Iraq, and the conflict in Yemen. Next the two sides are expected to negotiate regarding their interests in the Syrian conflict.
In addition, the nature of the US-Saudi relationship is changing, transferring much more responsibility on the Kingdom and its Gulf partners for their own defense–albeit strongly supported with US weapons and logistics. This is part of the US disengagement from direct regional interventions, which will be significantly furthered by a successful US-Iran agreement (e.g., see here and here, and this report on Saudi defense buildup from Balfour at Harvard).
How are these new developments to be understood? Continue reading
Posted in Energy and Geopolitics, Energy and Geostrategy, Global Oil Market, Global Oil system, international relations, Iran nuclear, Iran sanctions, Iraq, Iraqi oil, negotiations, Obama, OPEC, P5+1, Persian Gulf, Rouhani, Sanctions, Saudi Arabia, Syria, The USA, U.S. oil, Uncategorized
Tagged Energy, Hassan Rouhani, Iran, Iraq, Middle East, Obama, oil sector, OPEC, Persian Gulf, Saudi, Saudi Arabia, Washington
Note: These “USA Oil Seminar” posts are extra readings for my students to better understand how US energy policy is developed and to hear the views of US experts. The seminar is: “The Global Oil System & US Policy” at JFK Institute of FU-Berlin.
- This Friday, watch live (or the recording later on): Is the U.S. a Rising Energy Superpower? Implications for Global Markets and Asia, the Middle East, Russia, and Europe. CSIS upcoming talk by Fereidun Fesharaki. FRIDAY, MAY 16, 2014 | 10:00 AM – 11:30 AM . Moderated by David Pumphrey.
- Read the paper: Fueling a New Order? The New Geopolitical and Security Consequences of Energy |April 15, 2014. By: Bruce Jones, David Steven and Emily O’Brien. Brookings Institute; Washington, DC.
BACKGROUND: This week, the class reading assignments are a couple conference papers I wrote a few years ago on the history and structure of today’s global oil system, and how it grew to replace the neo-colonial oil system. Continue reading
Posted in China, Energy and Geopolitics, Energy and Geostrategy, Euroepen Union, Gas globalization, Global Oil Market, Global Oil system, international relations, Latin America, LNG, Oil course, Oil prices, Oil supply, OPEC, Persian Gulf, Resource conflicts, Russia, Saudi Arabia, Seminar, shale gas, shale oil, The USA, Tight oil, Trade and Commerce, U.S. oil, unconventional energy
Tagged Bruce Jones, Business and Economy, China, David Pumphrey., David Steven, Energy, Fereidun Fesharaki, Global Oil System, Iran, Iraq, Latin America, Middle East, oil sector, OPEC, Persian Gulf, Saudi, Saudi Arabia, South China Sea, United States, Washington