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Energy diplomacy: definitions

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1 Energy diplomacy: definitions
Energy diplomacy – is a diplomacy aimed at securing of a national energy security Pipeline diplomacy is policy towards the countries engaged in transportation of oil or gas;

2 Actors of energy diplomacy
Global elements: they try to take a control over the prices International Energy Agency Organization of Petroleum Exporting Countries The basic elements: they involve in bilateral struggle over prices: The countries-producers of energy: e.g., Russia, Middle East, Latin America The countries-consumers of oil: e.g., Western Europe, USA, China, India The transit countries: e.g. Ukraine *About the IEA The International Energy Agency (IEA) acts as energy policy advisor to 26 Member countries in their effort to ensure reliable, affordable and clean energy for their citizens. Founded during the oil crisis of , the IEA’s initial role was to co-ordinate measures in times of oil supply emergencies. As energy markets have changed, so has the IEA. Its mandate has broadened to incorporate the “Three E’s” of balanced energy policy making: energy security, economic development and environmental protection. Current work focuses on climate change policies, market reform, energy technology collaboration and outreach to the rest of the world, especially major producers and consumers of energy like China, India, Russia and the OPEC countries. With a staff of around 150, mainly energy experts and statisticians from its 26 member countries, the IEA conducts a broad programme of energy research, data compilation, publications and public dissemination of the latest energy policy analysis and recommendations on good practices. OPEC’s mission is to coordinate & unify the petroleum policies of Member Countries & ensure the stabilization of oil prices in order to secure an efficient, economic & regular supply of petroleum to consumers, a steady income to producers & a fair return on capital to those investing in the petroleum industry.

3 Russian energy diplomacy: aims up to 2020
1) the North-Baltic direction for transport of the oil to Europe (to avoid Ukraine and Poland)

4 Russian energy diplomacy: aims up to 2020
2) To gain an access to Caspian oil (The United States is the main rival)

5 Russian energy diplomacy: aims up to 2020
3) To make India and China to buy Russian oil and gas ( a shift to the Asian-Pacific area)

6 The main stages of the development of “oil curse” (oil misfortune)
1859 – U.S.: E. Drake make first boring of the oil well. The first price and measure: 1 barrel (an american - 2 $ Oil Standard Company – the only lrader of oil production

7 The main stages of the development of “oil curse” (oil misfortune)
1980s- a growth of kerosene consumption >> Europe needs oil Russia became a rival of the U. S. >> Russia made the Caucus region as the main source for oil to sell in Europe


9 The main stages of the development of “oil curse” (oil misfortune)
1920s – Oil was found in colonies of the Great Britain and France in Middle East: Shell, Britain petroleum, Fransis de Petrol, Exxon were established >> Seven Sisters They controlled the prices till the 1960s 1960s – Decolonization >> Nationalization of foreign companies in Middle East, Africa, Latin America >>

10 The main stages of the development of “oil curse” (oil misfortune): the effect of nationalization
Suez crisis

11 Establishment of OPEC, 1960 >> The price of oil became 32 $
The main stages of the development of “oil curse” (oil misfortune): the effect of nationalization Radical energy diplomacy of Algeria, Libya ( the growth of the taxes for foreign companies) Establishment of OPEC, 1960 >> The price of oil became 32 $ 1980s – a new drop of prices and a belief of cyclical economic crises due to chaning of oil prices.

12 1990s – the states of Asia-Pacific region >>
The main stages of the development of “oil curse” (oil misfortune): the effect of new actors 1980s – Mexico, Great Britain, Norway and Canada became the sellers of oil 1990s – the states of Asia-Pacific region >> The influence of OPEC countries are decreasing. 2000s – the great demands of oil in India and China

13 1) Norway, Great Britain, Canada – political isolation
The grouping of states as to the “oil curse” and their energy diplomacy and effects 1) Norway, Great Britain, Canada – political isolation 2) Venezuela, Mexico, Russia – cyclic aggressive foreign policy aims when prices are high; the blackmail of foreign companies, corruption, low level of democracy 3) Nigeria, Angola (south-west Africa) – diplomacy of World Bank to make them to distribute the funds

14 The grouping of states as to the “oil curse” and their energy diplomacy and effects
4) Iran, Libya, Saudi Arabia – the powerful blackmail, because there are the highest percentage of oil

15 The grouping of states as to the “oil curse” and their energy diplomacy and effects
5) transit countries – the pressure and unstable economic position: Byelorussia, Ukraine, Kazakhstan,

16 The instrument of energy diplomacy
The methods of strategic cooperation – temporal agreement of countries to make a special pressure on the others coercive diplomacy – a pressure during the talks Embargo – an interruption of trade Sanctions Military intervention

17 Energy diplomacy of Russia
A history: The oil was always played the important role in Russian foreign policy: in the end of 19th century the MFR help to build the pipeline from the south of Russia to Persia (Iran); Soviet Union used special policy of prices wars to promote the Soviet oil and gas to world markets Oil was used to marinated the economic dependence among Eastern European countries (“Friendship pipeline” was a political not economic project); 1970es the USSR opened the Western European market : special strategies to promote Russian oil and gas, use it not only for political reasons, but also for profit and security; the main aim is to return former political influence of Russia in crucial regions (Asia and Middle East) Visit of Putin to Saudi Arabia, march 2007 (a cooperation in oil production and transit)

18 energy diplomacy and political aims
Oil and gas (the aims for every powerful state is to get an access to resources, take control over transit and take control over the prices) are the souse for contradictions: Caspian basin: Iraq and USA and USA and former Soviet Asian Republics rich of gas New “Nord-way” to Germany. Struggle to be a transit countries: if you are a transit country your position in a region is stronger: Ukraine or Belarussia; Turkey/Greece, Bulgaria struggle for the pipeline “Burgas-Alexandroupollis”: Putin and Greece signed the agreement about the building of it, march 2007* *Подписано соглашение по нефтепроводу "Бургас-Александруполис"[15:17 / ] Россия, Болгария и Греция подписали межправительственное соглашение о трансбалканском нефтепроводе Бургас-Александруполис, сообщает РИА Новости. Строительство начнется сразу после ратификации соглашения парламентами трех стран. C российской стороны документ подписывал глава Минпромэнерго Виктор Христенко, с болгарской — министр развития и общественных работ Асен Гагаузов, а с греческой — министр развития Димитрис Сиуфас. Перед подписанием документа Владимир Путин, который сегодня встретился с премьер-министром Греции Константиносом Караманлисом, заявил, что проект трубопровода "Бургас-Александруполис" "представляет интерес не только для наших стран, но и для всей мировой экономики".  Как сказал Президент России, "это действительно серьезный вклад в развитие энергетики". "Это позволит диверсифицировать и расширить объемы поставок на мировой рынок российских энергоносителей", — добавил Владимир Путин, передает радио "Маяк". Как отмечает ИТАР-ТАСС, Президент РФ поблагодарил греческого премьера за его личную поддержку проекта. "Хочу отдать должное вашей личной позиции, благодаря которой это стало возможным", — подчеркнул Путин. Проектная протяженность трассы нефтепровода "Бургас-Александруполис" — 280 км, пропускная способность — 35 млн тонн в год с возможным увеличением до 50 млн тонн в год. В проекте предусмотрено использование технологии последовательной перекачки нефти разных сортов. Стоимость проекта — около миллиарда евро. Доля России составит 51%, остальное поровну поделят между собой Греция и Болгария.

19 energy diplomacy and political aims
Caspian region: the most controversial – how to divide the Caspian sea between neighbors:

20 Homework Read file # 26


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