Back to the future or forward to the past? Strengthening markets and rules for effective global energy governance

Abstract

Current public policy debates on energy security are characterized by a singular focus on questions regarding access to resources. This lopsided attention to the geopolitical dimension of energy security is based on the myopic and erroneous presumption that global energy politics is necessarily a zero-sum game in which one country's energy security is another's lack thereof. In fact, debates deflect attention from the real issues that policy-makers should consider in their attempts to foster effective global energy governance—the central role increasingly international energy markets play in balancing demand and supply—and, even more importantly, the significance of the ‘rules of the game’ that structure these markets. This article makes a first attempt to apply a broader analytical lens by pointing out and analyzing the important role rules play in determining outcomes in international oil and gas markets; by examining how current trends are affecting the existing ‘rules of the game’; and by highlighting consequences for public policy.