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1. Russia invades Ukraine: The economic fall-out and consequences for energy markets

Author:
Paul Rivlin
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
In our latest issue of Iqtisadi Paul Rivlin analyses the effects of the Russian invasion of Ukraine on the Middle East and global energy markets.
Topic:
Energy Policy, Economy, COVID-19, and Russia-Ukraine War
Political Geography:
Turkey, Middle East, Saudi Arabia, and Egypt

2. The Ukraine War and the Middle East: The Rich Get Richer and the Poor Get Poorer

Author:
Paul Rivlin
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
In our latest issue of Iqtisadi, Paul Rivlin examines several economic issues occurring simultaneously in the Middle East and North Africa region mainly as a result of the Ukraine-Russia war. Higher oil prices are good for some countries and bad for others.
Topic:
Energy Policy, Oil, Economy, and Russia-Ukraine War
Political Geography:
Russia, Ukraine, and Middle East

3. "The New Levant": Rationales, implications and future trajectories of the cooperation between Jordan, Iraq and Egypt

Author:
Neil Quilliam, Zaid Eyadat, Harith Hasan, Abdelmonem Said Aly, Riham Bahi, Noor Alshyab, Amer Al Sabaileh, Johannes Uhl, and Adnan Tabatabai
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Center for Strategic Studies (CSS)
Abstract:
In cooperation with Konrad Adenauer Stiftung (KAS), the Center for Strategic Studies (CSS) at the University of Jordan held a 2-day closed workshop, in Amman, with regional and international experts on the topic of the tripartite alliance between Jordan, Iraq and Egypt, discussing the nature and timing of the alliance, the national perspectives of each signatory state, policy areas of cooperation and implications for other regional actors. This introductory summary presents some of the ideas discussed during the workshop, but does not necessarily reflect the opinion or assessment of each participant or the hosting institutions.
Topic:
International Relations, Security, Energy Policy, Regional Cooperation, Partnerships, Alliance, and Economic Cooperation
Political Geography:
Iraq, Iran, Middle East, Egypt, and Jordan

4. Israel and Lebanon: A Bridge Over Troubled Waters?

Author:
Nir Boms and Stephane Cohen
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
Amidst a deep political and economic crisis in Lebanon, accelerated by the Beirut port explosion in August last year, the end of 2020 witnessed a surprising round of talks regarding the demarcation of the Israeli-Lebanese maritime border. These bilateral negotiations - mediated by the U.S. and the U.N. - are the first non-security talks held between the two countries since the 1990s. Of course, Lebanon and Israel have no diplomatic relations and are technically in a state of war. The incentives for progress in the talks are strong as they could pave the way for lucrative oil and gas deals on both sides, though there still appear to be significant obstacles on the Lebanese side. Speaking with John Desrocher, the most recent U.S. mediator for the negotiations, in December 2020, Lebanese President Aoun was quoted as saying that Lebanon wants the talks to succeed because “this will strengthen stability in the South and allow us to invest in natural resources of oil and gas.”[1] Could a maritime border agreement between Israel and Lebanon be feasible, despite the otherwise toxic atmosphere between the two countries and the recent escalating threats of Hizballah? In a region full of surprises, this, too, might be a part of a changing reality.
Topic:
Energy Policy, Economy, Negotiation, and Dialogue
Political Geography:
Middle East, Israel, and Lebanon

5. The UAE and Israel: Developing Relations and the Challenge Ahead

Author:
Paul Rivlin
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
In this issue of Iqtisadi, Paul Rivlin discusses the developing economic ties between the United Arab Emirates and Israel with an emphasis on investments in the energy sector. In April 2021, the Israeli firm Delek Drilling announced plans to sell its 22 percent direct stake in the Tamar gas field to investors led by the Abu Dhabi based state-owned Mubadala Petroleum for $1.1 billion. The Tamar field has an estimated 297 billion cubic meters (bcm) of reserves. This would be by far the largest commercial deal yet between Israel and the UAE. Mubadala Petroleum is a wholly owned subsidiary of Abu Dhabi state investor, Mubadala Investment Company. Its plans to move into Israel’s upstream gas sector have the backing of the UAE and Israeli governments. In March 2021, the UAE announced the establishment of a $10 billion fund to invest in energy and other strategic sectors of the Israeli economy. According to the official statement, the UAE will invest in and with Israel in sectors including energy, manufacturing, water, space, healthcare, and agro-tech. The investment fund will support development initiatives to promote regional economic cooperation between the two countries. Funding will come from government and private sector institutions and the Delek deal is part of this framework,
Topic:
Energy Policy, Treaties and Agreements, and Economy
Political Geography:
Middle East, Israel, Palestine, and United Arab Emirates

6. The Forgotten Crises in the Gulf: Electricity and Water in Iran and Iraq

Author:
Paul Rivlin
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
In this issue of Iqtisadi Paul Rivlin analyses the causes of shortages in electricity and water supplies in the Persian Gulf region. In Iraq and Iran, in particular, spontaneous protests have gained momentum this summer as a result of these critical problems. The Gulf is well known for its oil and gas resources, but the lack of water may be its outstanding feature. Between 2000 and 2020, the population of the Gulf states rose by almost 50 percent but the supply of fresh water from sources other than desalination fell. This edition of Iqtisadi examines recent developments in the Gulf with an emphasis on the water crisis. The oil producers in the Gulf are divided into two groups: the Gulf Cooperation Council (GCC) members – Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain, and Oman – and Iran plus Iraq. The GCC states are all monarchies while Iran and Iraq are republics. The differences between the two groups are not only constitutional and political, but also socio-economic.
Topic:
Energy Policy, Water, Economy, and Electricity
Political Geography:
Iraq, Iran, Middle East, Persian Gulf, and Gulf Nations

7. Israel, Energy, and the Eastern Mediterranean: Shaping a New Regional Foreign Policy

Author:
Gabriel Mitchell
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Mitvim: The Israeli Institute for Regional Foreign Policies
Abstract:
This paper explores the nexus between Israel’s energy policy and foreign policy interests in the Eastern Mediterranean. While regional energy cooperation has the potential to be one of the most significant and enduring Israeli foreign policy achievements in recent decades, a closer look at regional geopolitics reveals that energy cooperation is often transactional in nature, and rarely transformative. The discovery of offshore hydrocarbons has also aggravated existing tensions between regional actors. This subject deserves more serious discussion by Israeli policymakers and the Israeli public, who often accept the Netanyahu government’s argument that energy exports will provide Israel massive strategic benefits. As this paper argues, in order to chart an optimal course forward, Israelis must first have a realistic conversation about energy’s potential to catalyze changes in the Eastern Mediterranean that serve Israel’s domestic needs and strategic interests.
Topic:
Foreign Policy, Energy Policy, Natural Resources, and Grand Strategy
Political Geography:
Middle East, Israel, and Mediterranean

8. Overcoming Taiwan’s Energy Trilemma

Author:
Evan A. Feigenbaum and Jen-Yi Hou
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Taiwan needs to look not just to the energy it needs right now but also to the energy it will need ten to twenty years from now if it is to power its future. This paper focuses on two elements of the paradigmatic transformation that are especially relevant to Taiwan’s future: (1) the rise of new energy and storage technologies, and (2) the dynamics of liquefied natural gas pricing. In particular, it looks at several ways in which new investment partnerships between Taiwan and U.S. players could bolster Taiwan’s ambitious effort to build out renewable energy as a source of industrial and residential power.
Topic:
Energy Policy, Markets, Science and Technology, Investment, and Fossil Fuels
Political Geography:
Middle East, Taiwan, and United States of America

9. Russia and Iraq Deepen Energy, Military Ties

Author:
John C. K. Daly
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
The Jamestown Foundation
Abstract:
As the United States hastens its drawdown of troops in Iraq before the January 20 inauguration of President-elect Joseph Biden, Russia is seeking to fill the developing geopolitical vacuum there. On November 25, following discussions in Moscow with Iraqi Foreign Minister Fuad Hussein, Russia’s top diplomat, Sergei Lavrov, remarked that Russian energy firms have invested billions of dollars in the Iraqi oil industry. “When it comes to energy, the largest Russian companies are working in Iraq together with their partners. These are Lukoil, Rosneft, Gazprom-Neft and Bashneft. All four have invested more than $13 billion in the Iraqi economy,” Lavrov told journalists (Interfax, November 25). He added that Moscow was also prepared to increase arms deliveries to Baghdad, stating, “We are ready to meet any Iraqi needs for Russian-made military products. Our country has traditionally played and continues to play a very important and significant role in ensuring Iraq’s defense capability and equipping its army and security forces, including in the context of continuing terrorist threats” (Mid.ru, November 25).
Topic:
Foreign Policy, Energy Policy, Bilateral Relations, and Military Affairs
Political Geography:
Russia, Iraq, Eurasia, and Middle East

10. Iran's Influence in the Middle East

Author:
Jadranka Polovic
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
The Middle East as one of the most heterogeneous and politically conflicting regions in the world and has long been at the center of international interest. Faced with sectarian wars and comprehensive social crises for decades the Middle East, due to its geostrategic importance and especially the imperative of controlling the region’s vast energy resources, has once again become a battle ground for major powers whose interests affect the concentration of participants in the region. The competition between global powers and growing influence of Russia and China, who undermine the US power and European Union’s influence and also undermine established alliances in the Middle East, undoubtedly require a rethinking of Western strategies for the region. A series of geopolitical challenges, especially after September 11 attacks against the United States, as a result of military interventions and civil wars (Afghanistan, Iraq, Libya and Syria) and uprisings (Arab Spring) and thus the collapsed regional order, confronted the international community with the changing nature of security threats, as well as with the new balance of power of regional and international actors in the Middle East. Among the many aspects of the Middle East conflicts, the fundamental issue of regional security today is the Sunni-Shiite conflict, which has since the invasion of Iraq in 2003 directly defined the approaches and policies of great powers and significantly changed regional dynamics. In this context, Iran’s role is particularly significant. Namely, over the last two decades, Iran has consolidated its goals in the Persian Gulf and strategically expanded its influence to other countries in the Middle East, primarily Iraq, Syria, Lebanon and Yemen. The growing influence of Shiite Iran, and its close relations with Shiite communities in the region with which it forms a strategic coalition, have become a key geopolitical challenge for the international community.
Topic:
Foreign Policy, Energy Policy, International Cooperation, Natural Resources, and Hegemony
Political Geography:
Russia, China, Europe, Iran, Middle East, Asia, North America, and United States of America

11. Chevron’s Purchase of Noble Energy: Accelerating the Eastern Mediterranean’s Gas Revolution?

Author:
Joshua Krasna
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
In the latest edition of Tel Aviv Notes, Joshua Krasna examines the regional implications of Chevron's purchase of Noble Energy for Israel, Egypt, and Jordan.
Topic:
Energy Policy, Oil, Gas, Economy, and Business
Political Geography:
Middle East, Israel, Egypt, and Jordan

12. Saudi-Russia oil war is a game theory masterstroke

Author:
Antoine Halff
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
On the face of it, the idea of Saudi Arabia and Russia starting an oil price war in the middle of a global pandemic is as dumb as it gets. From a game theory perspective, it is a masterstroke. Analysts have called the breakdown of Opec+ and the lifting of the supply cuts that kept the oil market balanced in the last two years anything from a spectacular blunder to collective suicide. A new model of the oil market led by the inventors of mean-field game theory, Fields Medal laureate Pierre-Louis Lions and Jean Michel Lasry, suggests otherwise.
Topic:
Energy Policy, Oil, Natural Resources, and Strategic Competition
Political Geography:
Russia, Europe, Middle East, and Saudi Arabia

13. A Saudi-U.S.-Russia Oil Deal Is Not a Good Idea

Author:
Christof Ruhl
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Oil markets are sending confusing signals at a time when more confusion is the last thing anyone needs. When Russia walked out on OPEC+ rather than contribute to more output cuts, Saudi Arabia turned on the crude taps. Whatever Riyadh’s intention, this “price war” was quickly made meaningless by the impact of the new coronavirus on global oil demand. The price collapse has been beyond anything anyone could have imagined. Now, storage room for crude is becoming scarce. Analysts warn darkly that plunging prices may threaten global economic stability. Equities follow the oil price news. Everyone seems to agree that prices should stop falling; and yet no one seems to argue that a very low oil price is exactly what the world’s economy needs to recover. The combination of price war and pandemic is also creating strange bedfellows. Some American shale producers are advocating that their country blocks Saudi oil imports, others want to talk to OPEC. President Donald Trump’s government has expressed an interest in cooperating on global oil supplies with Saudi Arabia and Russia; it’s nudging OPEC+ to reconvene, or an even wider group of producers to meet. Could we be witnessing the emergence of an unholy alliance of Saudi Arabia, Russia and the U.S., to “manage volatility,” and incidentally shore up the price of oil?
Topic:
Energy Policy, International Trade and Finance, Oil, and Natural Resources
Political Geography:
Russia, Europe, Middle East, Saudi Arabia, North America, and United States of America

14. 5 Reasons Why a Global Agreement to Prop Up Oil Prices Won’t Work

Author:
Jason Bordoff
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
In April 1986, U.S. Vice President George H.W. Bush traveled to Saudi Arabia with a request for King Fahd, the country’s ruler at the time: Please raise the price of oil. After falling around 60 percent over the course of a few months, cheap oil was becoming a “two-edged sword for America,” Bush explained. Consumers might enjoy low prices at the gas pump, but evaporating revenues for U.S. oil producers undermined America’s own oil supply, and thus its national security. That was the last time the White House publicly sought more expensive oil—until now. U.S. President Donald Trump has been pushing Saudi Arabia and Russia to cut output in the hopes that less crude on the market will raise oil prices, which have fallen by two-thirds since the start of the year. A low oil price threatens an already teetering U.S. shale oil sector with a wave of bankruptcies and job losses. All eyes are therefore on OPEC and its allies, which will meet by videoconference on Thursday to discuss the way forward—followed by an emergency meeting of G-20 energy ministers on Friday, where the United States will be represented as well. It was at the last meeting of OPEC and key non-OPEC producers in Vienna on March 6 that Russia refused to go along with a Saudi proposal for deeper production cuts. The subsequent surge in Saudi supply set off a vicious price war that has seen the price of oil briefly fall below $20 a barrel.
Topic:
Energy Policy, Oil, Regional Cooperation, Natural Resources, and OPEC
Political Geography:
Middle East and Persian Gulf

15. Under a Cloud: The Future of Middle East Gas Demand

Author:
Robin Mills
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
During the early years of the 21st century, the Middle East emerged as a fast-growing center not just of natural gas production and exports but also of demand. Including Egypt, total growth in annual demand from 2000 to 2017 was greater than any region except Asia, a feat more surprising when considering the region’s relatively small population and economy. That’s about to change, however. After two decades of rapid expansion of natural gas consumption in the Middle East, growth should drop through 2035 due to four factors: improved efficiency, higher gas prices, slower economic growth, and alternative generation. Demand growth was driven by low, subsidized gas prices intended to spur economic growth, encourage energy-intensive industrialization, and share some benefits with the local population. But budget deficits and unsustainably rising domestic energy consumption have encouraged regional governments to cut subsidies and introduce efficiency policies, particularly since the fall in oil prices in late 2014. Industrial demand growth is also poised to fall as the Middle East’s key competitive advantage was its low energy and feedstock cost. The analysis undertaken in this paper to project future gas demand in the Middle East yields significantly lower estimates than forecasts by a number of international bodies (IEA, GECF, BP, ExxonMobil), especially post-2030.
Topic:
Energy Policy, Natural Resources, Gas, and Trade
Political Geography:
Middle East

16. The 2020 Oil Crash’s Unlikely Winner: Saudi Arabia

Author:
Jason Bordoff
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
With 4 billion people around the world under lockdown as the coronavirus pandemic grows, demand for gasoline, jet fuel, and other petroleum products is in freefall, as are oil prices. The price of a barrel of crude has been so low in the United States that sellers recently had to pay people to take it off their hands. As a result, oil-dependent economies are reeling. In the United States, the largest oil producer in the world, the number of rigs drilling for oil has plummeted 50 percent in just two months, almost 40 percent of oil and gas producers could be insolvent within the year, and 220,000 oil workers are projected to lose their jobs. Around the world, petrostates from Nigeria to Iraq to Kazakhstan are struggling and their currencies tanking. Some, like Venezuela, face an economic and social abyss. While 2020 will be remembered as a year of carnage for oil nations, however, at least one will most likely emerge from the pandemic stronger, both economically and geopolitically: Saudi Arabia.
Topic:
Energy Policy, Oil, Natural Resources, and Gas
Political Geography:
Middle East, Saudi Arabia, and Gulf Nations

17. Nuclear Decision-Making in Iran: Implications for US Nonproliferation Efforts

Author:
Ariane Tabatabai
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Assessments of foreign policy tend to fall into one of two major camps: either they ascribe to a state’s actions all of the characteristics of a unitary actor, in which there is a decision made and executed as designed; or they fixate on the minutiae of the internal politics and deal making that went into the decision, underscoring the complexity of decision-making but often losing the thread of what results. This is particularly pernicious when involving the actions of a state with opaque decision-making and where attribution of responsibility is often itself the subject of intense internal political debate and controversy, as is the case with Iran. In this paper, Ariane Tabatabai seeks to pierce the veil of Iranian nuclear decision-making to both explain how decisions are reached and identify the effects of those decisions as a matter of Iranian state policy. This is, in many ways, an essential matter for those interested in understanding how Iran will decide—and what Iran may decide—to do in response to the continued stresses being imposed upon it by US-led international sanctions, especially when previous analysis has proven to be both overly optimistic (that Iran would meekly absorb the costs of US sanctions) and, at times, overly pessimistic (that Iran would withdraw from the nuclear agreement known as the Joint Comprehensive Plan of Action without delay). It is necessary to understand better how Iran reaches its decisions, particularly in the nuclear sphere, to be able to more accurately predict what it may choose to do next. This has utility in a variety of lines of work and study, but perhaps no more so than in the energy industry, which is both affected by—and has the power to affect in turn—Iranian decision-making. For this reason, we commissioned this paper and commend it to you as an important source of knowledge on how Iran’s decision-making process works, especially as relates to its nuclear weapons–relevant capabilities. Though the weapons program remains dormant, the way in which Iranian officials—and Iran as that unitary actor—think about these capabilities is an essential element of the story to come.
Topic:
Foreign Policy, Energy Policy, Military Strategy, and Nuclear Energy
Political Geography:
Iran and Middle East

18. The Just Transition in Energy

Author:
Ian Goldin
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
With each new year of data, and each new intergovernmental report, it becomes harder to deny the scale and urgency of the energy transition required to prevent catastrophic anthropogenic climate change. The Intergovernmental Panel on Climate Change urges countries to take action to prevent a rise in temperature by more than 1.5°C, and warns of catastrophic consequences of a rise above 2°C. Yet current policies and pledges fall far short of hitting these targets. Worse, since harmful climate change is caused by the stock of carbon in the atmosphere, the longer we delay measures to limit the flow of new carbon into the atmosphere, the more drastic those measures will have to be. This uneven distribution of threat and responsibility raises difficult questions. Developed countries are generally more advanced in their transition to renewables, which means that some of the cheapest opportunities to reduce emissions are in developing countries. Yet the fact remains that developed countries are responsible for a larger share of historic emissions—and developing countries may have a right to pursue development unhindered, as developed countries did in earlier decades. There are therefore several elements of the “just transition” in energy. The world needs to transition to cleaner energy, and the developing world needs to keep developing, all while supporting the countries and communities that bear the highest costs of mitigation measures—and supporting those areas already beginning to feel the negative effects of climate change. This report will outline the key challenges and opportunities and conclude with a series of practical steps available to policymakers.
Topic:
Climate Change, Energy Policy, International Security, Crisis Management, and Inclusion
Political Geography:
China, Europe, South Asia, Middle East, India, East Asia, South Africa, Latin America, West Africa, United States of America, and Sub-Saharan Africa

19. In Dire Straits? Implications of US-Iran Tensions for the Global Oil Market

Author:
Ilan Goldenberg, Jessica Schwed, and Kaleigh Thomas
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
In recent months, Iran has responded to rising tensions with the United States—particularly the US launch of the “maximum pressure” campaign against Iran—by attacking oil tankers and infrastructure in the Persian Gulf region around the Strait of Hormuz (the Strait). These actions have been designed to signal to the United States, the Gulf states, and the international community that the American strategy of strangling Iran economically will not be cost-free, and to Saudi Arabia in particular that it is highly vulnerable to Iranian retaliation. As the Strait of Hormuz is one of the world’s most critical energy chokepoints, the implications of Iran’s efforts merit close scrutiny and analysis. This study was designed to examine three scenarios for military conflict between Iran and the United States and assess the potential impacts on global oil prices—as one specific representation of the immediate economic impact of conflict—as well as broader strategic implications. The three scenarios are: Increasing US-Iran tensions that ultimately lead to a new “Tanker War” scenario similar to the conflict of the 1980s, in which Iran attacks potentially hundreds of ships in the Persian Gulf and Gulf of Oman over a prolonged period while also launching missiles at Gulf oil infrastructure. An escalation of tensions between Iran and the United States in which Iran significantly increases the scope and severity of missile attacks directed at major oil and energy infrastructure in Saudi Arabia and the UAE. A major conflict between Iran and the United States that includes damage to Gulf oil infrastructure and a temporary closure of the Strait of Hormuz. Its main conclusions are: The risk of a major military confrontation between the United States and Iran has increased in recent months but still remains relatively low, as neither the United States nor Iran wants war. That said, the September 14, 2019, attack on the Abqaiq and Khurais facilities was a strategic game changer and shows that the biggest risk is a prolonged, low-intensity military conflict. The fact that Iran was willing to conduct such an attack was a surprise to most analysts and to the US government and its Gulf partners. The level of accuracy it showed in the strike demonstrated a technical proficiency the US government and outside analysts did not believe Iran had. In the more moderate and likely conflict scenarios, increasing tensions between the United States and Iran are unlikely to dramatically affect global oil prices. The most profound costs in the more likely scenarios are not energy-related but security-related. Even in the less escalatory scenarios, the United States would be forced into long-term deployments of a large number of air and naval assets that would need to remain in the Middle East for years at a cost of billions of dollars. Such deployments would take away resources that would otherwise be dedicated to managing great power competition with China and Russia. In the more extreme conflict scenarios, major loss of life and an even bigger and longer-term American military deployment would be expected. In the lower likelihood scenario of a major military confrontation between the United States and Iran, global oil prices would be dramatically affected, though price impacts would not be prolonged. All assumptions about the potential impacts on oil prices are based on the supposition that the United States protects global shipping lanes, but that theory deserves further scrutiny. For more than a generation, the United States has viewed securing global shipping lanes that are critical for commerce and energy as a core vital interest. But given the isolationist tendencies in the United States and President Donald Trump’s attitude that America should stop underwriting the defense of its allies, it is conceivable he may choose not to respond in the types of scenarios described in this paper or demand that countries most dependent on oil trade from the Gulf—most notably China—step up instead. Another wild card for oil prices in a major crisis scenario would be President Trump’s unpredictable policies regarding the Strategic Petroleum Reserve. Typically, an administration would be expected to coordinate an international response with the International Energy Agency (IEA) to release the SPR of a number of countries, but this cannot be assumed in the current administration. Though these conclusions are to some extent comforting, the authors acknowledge that a key issue with any analysis of this situation is the unpredictability of the United States. In the present moment, neither US adversaries nor partners know quite what to expect—and, for that matter, neither does the US government or its observers.
Topic:
Foreign Policy, Energy Policy, Oil, and Global Political Economy
Political Geography:
United States, China, Iran, Middle East, and Asia

20. China’s Belt and Road Initiative and Its Energy-Security Dimensions

Author:
Frank Umbach
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
China’s Belt and Road Initiative (BRI) is officially neither a Chinese “Marshall Plan” nor a geopolitical master strategy. At present, it involves 84 countries, rising from 65 countries in 2015, and 15 Chinese provinces. Over the last year, the number of countries being concerned or ambivalent about China’s motivations and strategic objectives behind the BRI have increased. Despite officially supporting China’s BRI, the International Monetary Fund (IMF) also warned last April, that China is supporting unneeded and unsustainable projects in many countries, leading to heavy and unpayable debt burdens. In ASEAN, Chinese investments are welcomed but there are also misgivings about the BRI’s strategic objectives which may constrain ASEAN’s policy options. As China is presently and will remain the single most influential country in global energy markets in the next decades, it is not surprising that its infrastructure plans of building railways, highways and ports are often interlinked with China’s energy and raw materials projects abroad and its domestic energy policies. This paper analyses the energy dimensions of the BRI and its strategic implications for its wider economic, foreign and security policies in Southeast Asia, South Asia, Central Asia and the Middle East.
Topic:
Security, Foreign Policy, Energy Policy, Military Strategy, ASEAN, and IMF
Political Geography:
China, South Asia, Central Asia, Middle East, Asia, and Southeast Asia