Skip to main content

Advertisement

SpringerLink
Log in

Energy shift: decline of easy oil and restructuring of geo-politics

  • Research Article
  • Published:
Frontiers in Energy Aims and scope Submit manuscript

Abstract

This paper critically assesses the geopolitical and geo-economic impact of novel fuel resources on both resource exporters and importers. Presently, very strong political and economic forces drive the utilisation of domestic, unconventional oil and gas recovery in the West as these enhance energy security and ease balance of payment issues. The additional capacity generated by this trend has, supported by other effects such as Saudi Arabia’s decision to maintain current production, triggered a significant reduction of oil prices. Consequently, it is now oil exporters that struggle with the balance of payment issues and often these countries base their fiscal budget completely on fossil fuel revenues. In fact, these unconventional resources help turn the tide while oil exporters are now politically significantly weakened due to the increased energy sufficiency of the West. The catch is that the extraction of unconventional types of oil has many environmental implications. So, internalising the environmental externalities have to be considered. This paper, therefore, assesses, next to geopolitics and geo-economics, the environmental implications of this trend.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. Campbell C J, Laherrère J. The end of cheap oil. Scientific American, 1998, 278(3): 78–83

    Article  Google Scholar 

  2. Inderwildi O R, King D A. Energy, Transport and the Environment: Addressing the Sustainable Mobility Paradigm. London: Springer Heidelberg, 2012

    Book  Google Scholar 

  3. Fantazzini D, Höök M, Angelantoni A. Global oil risks in the early 21st century. Energy Policy, 2011, 39(12): 7865–7873

    Article  Google Scholar 

  4. Van Moerkerk M. Crijns-Graus W. A comparison of oil supply risks in EU, US, Japan, China and India under different climate scenarios. Energy Policy, 2016, 88: 148–158

    Article  Google Scholar 

  5. Owen N A, Inderwildi O R, King D A. The status of conventional world oil reserves–hype or cause for concern? Energy Policy, 2010, 38(8): 4743–4749

    Article  Google Scholar 

  6. Campbell C J. Campbell’s Atlas of Oil & Gas Depletion. Springer, 2013

    Book  Google Scholar 

  7. Murray J, King D A. Climate policy: oil’s tipping point has passed. Nature, 2012, 481: 433–435

    Article  Google Scholar 

  8. Arezki R, Blanchard O. Seven questions about the recent oil price slump. 2014-12-22, http://blog-imfdirect.imf.org/2014/12/22/seven-questions-about-the-recent-oil-price-slump/

  9. Emily Cadman. Oil price slump shot in the arm for global economy, says IMF. 2014-12-22, http://www.ft.com/cms/s/0/fa5426ac-89fa-11e4-9b5f-00144feabdc0.html#axzz4E1dUyXKI

  10. Statistics Division of the International Energy Agency. Crude Oil Production. 2015-03, http://www.eia.gov/dnav/pet/pet_crd_crpdn_adc_mbblpd_a.htm

  11. Fratzscher M, Schneider D, van Robays I. Oil prices, exchange rates and asset prices. ECB Working Paper 1689, 2014

    Google Scholar 

  12. Czech National Bank. Inflation report II. 2011, https://www.cnb.cz/miranda2/export/sites/www.cnb.cz/en/monetary_policy/inflation_-reports/2011/2011_II/download/ir_II_2011.pdf

  13. Sachs G. Panel: the new oil order. 2015-02-24, http://www.goldmansachs.com/our-thinking/talks-at-gs/new-oil-order.html

  14. McGlade C, Ekins P. The geographical distribution of fossil fuels unused when limiting global warming to 2°C. Nature, 2015, 517(7533): 187–190

    Article  Google Scholar 

  15. Hall C, Klitgaard K. Energy and the Wealth of Nations— Understanding the Biophysical Economy. NewYork: Springer, 2012

  16. Murphy D J, Hall C A S. Year in review—EROI or energy return on (energy) invested. Annals of the New York Academy of Sciences, 2010, 1185(1): 102–118

    Article  Google Scholar 

  17. Bergerson J, Keith D. Life cycle assessment of oil sands technologies. Alberta Energy Futures Project. Institute for Sustainable Energy, Environment, and Economy (ISEE), University of Calgary, 2006

    Google Scholar 

  18. Hall C A S. Energy return on investment. 2013-05-09, http://energy-reality.org/wp-content/uploads/2013/05/09_Energy-Returnon- Investment_R1_012913.pdf

  19. Inderwildi O R. Siegrist F, Dickson R D, Hagan A J. The feedstock curve: novel fuel resources, environmental conservation, the force of economics and the renewed east–west power struggle. Applied Petrochemical Research, 2014, 4(1): 157–165

    Article  Google Scholar 

  20. Grubb M. Emissions trading: cap and trade finds new energy. Nature, 2012, 491: 666–667

    Google Scholar 

  21. Inderwildi O R, King D A. Quo vadis biofuels. Energy & Environmental Science, 2009, 2(4): 343–346

    Article  Google Scholar 

  22. Inderwildi O R, Jenkins S J, King D A. Mechanistic studies of hydrocarbon combustion and synthesis on noble metals. Angewandte Chemie International Edition, 2008, 47(28): 5253–5255

    Article  Google Scholar 

  23. Chapman I. The end of peak oil? Why this topic is still relevant despite recent denials. Energy Policy, 2014, 64: 93–101

    Article  Google Scholar 

  24. Campbell C J. The anomalous age of easy energy. In: Inderwildi O R, King D A, eds. Energy, Transport, & the Environment. Springer, 2012

    Google Scholar 

  25. Lutz C, Lehr U, Wiebe K S. Economic effects of peak oil. Energy Policy, 2012, 48: 829–834

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Smith School of Enterprise and the Environment, University of Oxford, Oxford, OX1 3QY, UK

    Oliver R. Inderwildi & David A. King

Authors
  1. Oliver R. Inderwildi
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. David A. King
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Oliver R. Inderwildi.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Inderwildi, O.R., King, D.A. Energy shift: decline of easy oil and restructuring of geo-politics. Front. Energy 10, 260–267 (2016). https://doi.org/10.1007/s11708-016-0416-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11708-016-0416-8

Keywords

Search

Navigation