World Energy Security Research Articles

The Impact of Iran's Nuclear Standoff on World Energy Security

While “energy security” is an elusive term, experts agree that threats to world’s energy security include the use of the oil weapon by one of the major oil producing countries, a military attack on an oil-producing country, or any actions, plans, or rhetoric—even by the oil consuming countries—that reduce investment and curtail oil production. In the last two years, experts and traders have feared that Iran might use the oil weapon by cutting or reducing its oil exports in retaliation for harsh sanctions that the United Nations’ Security Council (UNSC) might impose on Iran or air attacks on suspected Iranian nuclear facilities by the United States or Israel. 1 They also feared that, in the long run, an ongoing confrontation or the imposition of sanctions would reduce investment in Iran’s upstream sector and halt the growth in Iran’s oil output. Therefore, the Iranian nuclear standoff is a potential threat to the world’s energy security in both the short run and the long run. Ironically, a peaceful nuclear program in Iran would improve world energy security in a number of ways. This paper focuses on the impact of the current conflict between Iran and the West on world energy security and why it is not in the interest of Iran to use the oil weapon. Section II discusses the impact of the Iranian nuclear standoff on world energy security. Section III outlines the factors that justify the use of nuclear power in Iran. Section IV summarizes the lessons learned from the oil embargoes of 1956, 1967, and 1973. Section V explains the economic and political reasons that might prevent Iran from using the oil weapon. Section VI provides conclusions.

Pipeline Diplomacy: The Geopolitics of the Caspian Sea Region

The Caspian Sea region is important to world energy markets because it holds large reserves of undeveloped oil and natural gas. In order to fully utilize these resources several challenges need to be addressed. These include an accurate assessment of the region’s hydrocarbon resources; rivalries between regional and international powers; domestic ethnic conflicts; and lack of appropriate export routes. This study examines these four obstacles. It argues that the region could help increase world energy security by diversifying global sources of supply; however, the notion that the Caspian’s oil and gas can be the panacea to long-term global energy security is misguided.