Energy: Bottomline Decisions

“Whoever’s got the gold makes the rules…”. Oil, or black gold, is governed by price and supply. Social and environmental concerns come second in the energy-policy agenda, according to an article in Newsweek by the World Economic Forum’s associate director of energy industries, Christoph Frei.

I’ve tried contacting Greenpeace, UNEP and the Earth Institute about the dilemma between growth (and the energy that fuels it) and sustainability. While I wait for a response, let’s hear your views.

Posted by Samantha Tonkin at 03:34

IJ

Extract from the article: “As long as supply security dominates the policy agenda, international agreements on higher-order issues, including the Kyoto Protocol on climate change, will face hurdles. . . when push comes to shove, energy security will trump all other issues.”
But how could supply security be removed from the policy agenda?
Until this tough decision is resolved, it’s every nation for itself on the world’s most important issue – security of energy supply.
The geopolitics are evident in this recent piece:
“As U.S. oil imports are projected to surge 70 percent during the next two decades due to demand growth and a decline in domestic crude production, the U.S. cannot afford to lose chunks of the crude produced by the two countries that together supply a third of its oil imports [Canada and Venezuela]. But Chinese competition for this oil might cause just that.”
“Control of major companies by a Communist government could weaken U.S.-Canada relations exposing Canada to Chinese pressure to part ways from the U.S. on issues which both countries have historically agreed upon regarding China, like human rights abuses, arms sales to the Middle East and China’s relations with Taiwan.” http://www.iags.org/n0118041.htm
IJ

A writer in ‘The New York Times’ today echoes the view that the US – and presumably other thirsty nations – should become energy independent.
“I am a geo-green. The geo-greens believe that, going forward, if we put all our focus on reducing the price of oil – by conservation, by developing renewable and alternative energies and by expanding nuclear power – we will force more reform than by any other strategy. You give me $18-a-barrel oil and I will give you political and economic reform from Algeria to Iran. All these regimes have huge population bubbles and too few jobs. They make up the gap with oil revenues. Shrink the oil revenue and they will have to open up their economies and their schools and liberate their women so that their people can compete. It is that simple.”
In summary, the US and other nations could import less energy; but with the knock-on effect that oil exporters suffer seriously with lower prices for their oil. This is the problem with unilateralism. The United Nations should really be involved here – what extra authority does ECOSOC need in order to act?
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