Expansion of brics: Implications for global energy markets

Abstract

Brazil, Russia, India, China, and South Africa have invited six other countries to join the BRICS grouping next year, namely Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and United Arab Emirates. The expanded BRICS is the lynchpin of the changing world order and economic clout for the promotion of the Global South agenda. As evidence suggests, the new group is likely to exert profound influence over the world energy investment and trade: apart from impressive oil and gas deposits, an expanded BRICS could have 72 percent of rare earths (and three of the five countries with the largest reserves). This paper seeks to assess the energy market potential of each country invited to join the group and estimate the possible impact of these markets on mineral trade flows, investments, and energy trade deals within the BRICS association. To address the implications for global energy markets carried by this expansion, the paper examines each new member of the BRICS grouping’s mineral supplies and renewable energy capabilities. The authors conduct qualitative data analysis based on numerical evidence collected from the energy sector reports of each country, the latest report of the Center for Strategic and International Studies, and from publications by prominent experts of the countries invited to join BRICS. By revealing the current tendencies in BRICS oil and gas markets and the energy features peculiar to each of the new members, the paper answers the research question concerning the mineral resources that each new member of the bloc could offer in order to boost the BRICS energy markets. Touching upon the clean energy transition processes in the new member countries, the authors conclude by contemplating on the impact of the new BRICS on global energy trade in general.