Energy superpower
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[edit] Energy Superpower: What is it?
There is as yet no consensus as to what an "energy superpower" is exactly, or how to define it apart from from other large resource producing states precisely. An approximate definition of such a state is one that possesses incredible amounts of energy reserves or potential reserves in areas like oil, natural gas, coal, uranium, and perhaps even renewable energy. However, for a state to qualify for such a status, it must be a net exporter of energy, possess a massive quantity of at least one of these resources, and be very influential in the prices and production of at least one energy field.
These energy superpowers project greater power than would be otherwise possible due to their lock on the exportable energy markets, and are becoming increasingly valuable to the global economy. In the global commodities' boom of recent years many of these states have benefited massively from increased production and prices.
There are currently two "recognized" energy superpowers globally, both of whom have the largest reserves and production in their areas of energy they specialize in. Russia has the world's largest reserves of natural gas and is enormously influential on the world stage because of that, while Saudi Arabia has the world's largest conventional oil reserves and highest oil production rates in the world. Actions taken by companies or the government in either state are enough to produce an immediate reaction in the stock market, although the markets have been known to second-guess Saudi Arabia's stated production numbers.
[edit] Energy Superpowers of the World
[edit] Russia
Russia has the largest natural gas reserves of any state on earth, along with the second largest coal reserves, and the eighth largest oil reserves.<ref>Russia Energy Data, Statistics and Analysis - Energy Information Administration (US Govt)</ref>
In recent years Russia has identified the gas sector as being of key strategic importance. Many private oil and natural gas companies, most notably Yukos and Sibneft have been consolidated under the control of the state-controlled Rosneft and Gazprom respectively. Gazprom also has control over all gas pipelines leading out of Central Asia, a region also rich in gas. Gazprom utilises this monopoly to deny Central Asia access to the direct export buisiness and the lucrative European market. However Russia has used such gas, primarily that from Turkmenistan, on occasions where it has found itself unable to meet all its delivery obligations from its own production. Such circumstances in 2000 led to Gazprom allowing Turkmenistan to use its pipelines to supply gas to the highly-subsidised, low price Russian domestic market - leaving Gazprom free to fulfil its obligations towards European customers.<ref>International Herald Tribune, 12/2/06 - Russia takes heat over energy supply - Gazprom sells a 33% of its gas to Europe, accounting for nearly 70% of the company's revenue. The remaining 70% is sold for domestic Russian consumption at highly subsidized prices.</ref>
As of 2006, Russia supplies over 25% of Europe's oil and over 40% of its gas.<ref>[1]</ref> Its energy superpower status has recently become a hot topic in the European Union.<ref>[2]</ref>
Russia has recently taken to using these resources as a policy tool to be wielded against offending states like Georgia and other states it perceives as hindrances to its power. Recently Russia doubled natural gas prices to the Republic of Georgia following an international incident in an effort to strongly influence the Georgian leadership's defiance of Moscow. Russia's overwhelmingly large reserves of natural gas have helped give it this title without much debate to it by many of the world's leading political and economic institutions.<ref>[3]</ref><ref>[4]
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Despite Russia's vast potential, there are growing concerns that it will run into grave difficulties in the near future.<ref>SignonSanDiego.com - TNK-BP warns of Russian gas shortage in 2007</ref> Russia has not opened up any new gas fields since the fall of the Soviet Union, those which are currently in operation are rapidly depleting. This, combined with inefficient plant and ageing infrastructure, have raised concerns that, unless prompt action is taken, Russia will find itself unable to meet its committments without importing additional gas from Central Asia - extremely ironic given Russia's immense reserves.<ref>The Economist, 23/11/06 - What if Russian Gas Runs Low?</ref>
[edit] Saudi Arabia
Saudi Arabia possesses both the world's largest oil reserves and produces the largest amount of the world's oil. Considered to be the leading state of OPEC, it's decisions to raise or cut production almost immediately impact world oil prices. Saudi Arabia is perhaps the best example of a current energy superpower in the world today in terms of having influence and power on the global stage due to energy reserves and production of not just oil, but natural gas as well. It is often referred to as the world's only "oil superpower" [5].
[edit] Emerging Energy Superpowers
These are states with growing energy production with massive reserves that are potentially exploitable. Two states are recognized as belonging to this category, and both of which are Western. This reverses the trend towards western countries being totally dependent on states' that are not necessarily friendly towards them. Due to the stable nature of both of these states and their friendliness to private capital, they are one of the few countries on earth where foreign direct investment can be made in their energy sector.
[edit] Canada
Canada strongly differs from Russia on using energy as a direct tool to increase the national government's power[6]. It has however used threats during Prime Minister Paul Martin's government of using oil shipments as a tool to help Canada negotiate a better softwood lumber trade deal with the United States.
The Energy Information Administration (EIA), the statistical wing of the U.S. Department of Energy, has listed Canada having the world's second-largest oil reserves (179 billion barrels) following Saudi Arabia (260 billion barrels), however, this includes unconventional output from oil sands; conventional output is estimated at 4.9 billion barrels [7]. EIA's estimate is based on numbers from the Canadian Association of Petroleum Producers (CAPP) and released in the publication International Energy Outlook 2006. According to CAPP it has among the largest potentially exploitable oil reserves in the world, the oil sands of northern Alberta, estimated at 1.7 trillion barrels.
Canada is also the largest producer of uranium on earth, and exports the CANDU reactor technology it has developed. Canada's current Prime Minister, Stephen Harper, has referred to Canada as an "emerging energy superpower" [citation needed].
[edit] Australia
Australia Possesses massive amounts of coal reserves and production, and exports them globally to economic powerhouses like China, Japan and India. The world commodities' boom caused by the rise of new industrial power China has caused a large economic expansion in Australia over the last fifteen years. Australia also possesses large reserves of natural gas and uranium, both of which it it produces in great quantities. Prime Minister John Howard wants Australia to become a "energy superpower" [8].
[edit] Potential Energy Superpowers
States with the possibility of gaining energy superpower status, these states are more likely to be located in places like Latin America or Central Asia. They have the potential, but as yet show few signs of becoming true energy superpowers.
[edit] Brazil
A potential bio-energy superpower, Brazil produces vast quantities of ethanol from sugarcane to help wean itself from its dependency on other unstable Latin American energy producing states and the volatile Middle East.
[edit] Venezuela
Venezuela possesses massive quantities of heavy oil (around 1.8 trillion barrels (Oil Sands) that are potentially exploitable, but has been hindered in production by attempting to force major oil companies, particularly American ones, to give Venezuela massive royalties and help the state pay for social programs[9]. Its oil production has been declining due to its stringent contracts, which discourage expanded oil production.
[edit] Notes
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[edit] See also
| Power in international relations | |
|---|---|
| Power statuses | Middle power | Regional power | Great power | Superpower | Hyperpower |
| Emerging superpowers | China | India | European Union |
| Future geopolitics | African Century | American Century | Asian Century | British Moment | Chinese Century | European Century | Indian Century | Pacific Century |
| Types of power | Soft power | Hard power | Political power | Power (sociology) | Power politics | Power projection | Polarity in international relations |
| Other | BRIC | BRIMC | BRICS | BRICET | Energy superpower | Second superpower | SCO |
