When and Why the Suppliers of Oil Matter
China's supply lines today are every bit as vulnerable as Japan's were in 1940.
by Phillip Orchard
March 14, 2019
There have been several key changes in the global energy landscape in recent years. The surge of U.S. crude production, the reimposition of sanctions on Iran, efforts by OPEC to goose prices, instability in producers like Venezuela and Libya, and rapacious appetites in emerging economies have reconfigured long-established oil flows across the world. Last week, for example, newly released data showed Saudi crude exports to the U.S. Gulf Coast dropping to nearly a fifth of levels a year ago. The week before, Saudi Crown Prince Mohammed bin Salman made high-profile visits to Pakistan, India and China to woo new buyers and investors.
There are countless dimensions to the geopolitics of energy security. Price swings can lead to a surge in prosperity and clout in one country while wreaking havoc on the internal politics of another. Countries have routinely proved willing to meddle in the internal politics of oil-rich states to protect commercial energy interes…
 |
|