In a new article for the journal Global Policy, CGEP Fellow Morgan Bazilian and co-authors explore the changing geopolitics of energy for the United States.
The Trump Administration has an opportunity to foster a new energy statecraft based on the realities of a dynamic and rapidly-changing global energy marketplace. The geopolitical considerations of this energy transition are not well-explored. Additionally, the recent renaissance of oil and gas in the US has reinforced the alluring notion that energy independence and national energy security are the same thing. But the global nature of energy markets expose this notion as utterly misleading. A re-envisaged energy statecraft would utilize a variety of US foreign policy and multilateral tools to reform the international energy sector, protect the global energy marketplace, and spur investments in new generation and innovation. These steps require building an integrated approach to the multiple energy-security challenges.
Global gas markets are experiencing a period of unprecedented tightness that has worsened since the Russian invasion of Ukraine in February 2022, as illustrated by the record spot prices of well above $50/million British thermal unit (mmBtu) in Asia and Europe as of early September 2022.
Since Russia’s invasion of Ukraine, the dynamics of natural gas markets and, especially, Europe’s heavy...