Showing posts for "Energy Security"
The energy world has been abuzz this week with news that the Department of Commerce will allow exports of minimally processed condensate. This has been heralded as a “step towards a rational oil policy” and a shift that “could change the world’s energy balance”. In particular, many are speculating that this is a step toward complete elimination of the ban on crude oil exports. Read more »
Three years ago, convinced that U.S. thinking about energy security was stuck in the past, my colleagues and I launched a new CFR effort on energy and national security. Today, forty years after the first oil crisis, CFR is publishing two new products of that effort. These follow earlier publications on energy market transparency, the pivotal role of spare capacity, Iran-related oil market contingencies, transformations in U.S. energy, the Strategic Petroleum Reserve, and cyber security for oil and gas, among others. Expect to see more work published in the coming months. Read more »
Constant chatter about an impending oil release from the U.S. Strategic Petroleum Reserve (SPR) was a prominent feature of the oil market last year. Much of the speculation was driven by the ongoing loss of crude from Iran, due to sanctions, and the possibility of a confrontation with Tehran over its nuclear program, which could have cut off traffic through the vital Strait of Hormuz. Read more »
Policymakers, analysts, and pundits regularly argue over whether countries should care about who they buy their oil from. Economist usually insist that, because markets are flexible, the precise patterns of oil trade don’t matter. Security strategists often insist that they must. Read more »
A new term has been getting a lot of play in recent weeks. The International Energy Agency (IEA) kicked things off when it projected that the United States will be “almost self-sufficient in energy, in net terms” by 2035. The idea of “net energy self sufficiency” has shown up everywhere from The Economist to Scientific American. Even a State department blog has trumpeted projected developments using similar words. Read more »
A massive cyberattack this summer on Saudi Aramco, Riyadh’s energy giant, left some 30,000-plus of the company’s computers lifeless, making a rather futuristic threat to the oil and gas industry front page news. U.S. Secretary of Defenese Leon Panetta called the attack “probably the most destructive…that the business sector has seen to date.” The Saudis weren’t the only targets. RasGas, a Qatari natural gas company, was also hit. Months later, investigators are still trying to get to the bottom of what happened, and more importantly, why it did, and what can stop it from happening again. Read more »
What’s roiling the oil market right now? The old familiar source of instability—unrest in the Middle East—is far from the whole story, though it still tends to be the first place Western pundits look when the world’s most important commodity is in turmoil. But this paradigmatic hangover from the 1970s has become less and less adequate. Read more »
Markets thrive when information is cheap, abundant, and reliable. This rule holds true for all sorts of markets, from housing to stocks to energy. More transparency in energy markets makes them better able to respond to supply-and-demand signals and makes pricing more efficient. Read more »
In an op-ed I wrote for the Houston Chronicle on Friday, I tried to distill some of the policy lessons from my major new study on the Strategic Petroleum Reserve, which was published by CFR last week. Read more »
Energy, Security, and Climate examines policy challenges surrounding energy, security, and climate change.