Oil and Gas Management

Running head: OIL AND GAS MANAGEMENT
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OIL AND GAS MANAGEMENT
Contents
Introduction......................................................................................................................................2
Literature Review............................................................................................................................2
Analysis...........................................................................................................................................4
Conclusion.......................................................................................................................................9
Bibliography..................................................................................................................................10
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OIL AND GAS MANAGEMENT
Introduction
The area of geopolitics has always shown considerable amount of interest regarding energy as
various conventional sources of energy such as coal, air and natural gas comprise of physio
geographical variables which are of utmost strategic importance. In context of geopolitics it is
widely believed that the authority of energy and the energy relation between the different
producer countries with the transit countries and the consumer country are very vital elements
which has the capacity to influence international relations. The location factor1 regarding the
current location of the energy resources and the possible routes via which it can be brought to
various consumer countries comprises a vital area of study within the subject of geopolitics2.
This report focuses on the geo-politics regarding the renewable sources of energy in the future
among the various countries of the world like US and China that are transitioning to renewable
sources of energy from non-renewable sources of energy.
Literature Review
Geopolitics Defined
Geopolitics is defined as the scientific area of study which belongs to both Political geography
and International Relations and it also analyses the relation among politically acting individuals
and their surrounding territory based on three dimensions namely physical-geographical, human-
geographical and spatial. The geo-politics of conventional energy comprises of an entire
literature by itself. The exploration3 and development of conventional sources of energy such as
coal, oil, and natural gas requires high level of capital investments and also requires a military
machine for its controlling. In the current times of increasing scarcity of conventional resources,
the producer countries, the transit countries and the consumer countries are geopolitically
positioning themselves in such a way so that it helps in safeguarding their energy security4.
1 Javed Anwar, and Iftikhar-ul-Husnain Muhammad. "The Role of Renewable Energy Supply and Carbon Tax in the
Improvement of Energy Security: A Case Study of Pakistan/Comments." Pakistan Development Review 53, no. 4
(2014): 360.
2 Ibrahim,S. Arinç, and Özgül Levent Özgül. "Exportation of EastMed Gas Resources: Is it Possible without
Turkey?" Insight Turkey 17, no. 2 (2015): 123
3 Antto Vihma, and Turksen Umut. "THE GEOECONOMICS OF THE SOUTH STREAM PIPELINE
PROJECT." Journal of International Affairs 69, no. 1 (2015).
4 H. Akin. Ünver, "SCHRÖDINGER'S KURDS: TRANSNATIONAL KURDISH GEOPOLITICS IN THE AGE
OF SHIFTING BORDERS." Journal of International Affairs 69, no. 2 (2016).
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OIL AND GAS MANAGEMENT
Thought it is a fact that location and energy among themselves do not explain everything in
terms of international relations or else one would have slipped into geographic or energetic
determinism, but the way by which various societies shape their mix of energy is pivotal
regarding both of their chances in context to their survival and development. The countries and
regions which have adequate energy at their disposal5 remain in a better potential position than
other countries.
Current Trends
The concept of renewable energy has come into the forefront in the last decade or so due to the
consequence of various combining factors and trends.6 The last couple of decades have quite
remarkably shown us that the burning of non-renewable and conventional energy sources have
contributed to the rise in emission of greenhouse gases, have led to changes in climate, have led
to the degradation of resources and have also led to the exhaustion of natural resources. In
addition to that the entry of a large population of people, mostly from the Asian countries such as
China in the global economic scenario have structurally impacted the demand for energy and
therefore the scarcity of conventional energy sources could become a harsh reality in the coming
years. All the above mentioned elements7 have pushed decision makers of various countries to
make various choices in context of developing more renewable sources of energy and even
turbulent market conditions have influenced the process of development of non-renewable
sources of energy, though it has evolved jerkily in the past couple of years. Further the
international stock market predict a situation of scarcity that can develop8, similar to that of 2008
when a barrel of crude oil reached a record price of $147 in the international market where the
prices of the conventional and non-renewable sources of energy multiplied in a short time period
which created volatility in the market. Therefore due to this factor the renewable and non-
conventional sources of energy tend to become more economic and interesting than conventional
and renewable forms of energy. In 2008, after few months when the prices of energy decreased
5 Damir. Tokic, "Shale Gas: Energy Policy for the Next Wave of Globalization. "The Academy of Business and
Retail Management (ABRM), (2013).
6 Cemal Burak Tansel,. "Geopolitics, Social Forces, and the International: Revisiting the 'Eastern Question'." Review
of International Studies 42, no. 3 (2016): 492-512.
7 Daniel Scholten, and Bosman. Rick "The Geopolitics of Renewables; Exploring the Political Implications of
Renewable Energy Systems." Technological Forecasting and Social Change 103, (2016).
8 Tatyana I Pototskaya,.et al. "Geopolitical Impact on Transformation of Territorial Organization of Russian Pipeline
Transport in the Post-Soviet Time." International Journal of Energy Economics and Policy 6, no. 4 (2016).
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