- Created by: kathryn chalkley
- Created on: 12-06-11 20:10
Middle East & OPEC
- Largest supplies of oil globally
- Security and political stability are vital in the Middle East; if the rest of the world wants to depend on its supplies
- Attacks in Abqaiq; produce 6.8 million barrels in a day (75% of Saudi's output) and 9/11 want to reduce dependency
- OPEC: stabilise and safeguard the price of oil for its members
- net exporter
- Larger populations more interested in revenue
- Smaller populations more interested in stability
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- Worlds largest energy company
- Worlds 3rd largest company; Exxon Mobil and General Electric
- Provide Russia with 92% of energy and EU with 30%
- Russian governemnt have 50.002% stake
- 2006: 430,000 employed
- 2004: Orange Revolution; Russia quadrupled proces
- 2008: Ukraine looking to join NATO and EU; again cut supplies
- Should EU be worried about their energy securtiy?
- In short, NO; the European markets are too valuable to lose.
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- Energy intensive
- 2 tonnes of mined sands required to produce one barrel of oil; high waste products
- Requires 2-5 barrels of water for one barrel of oil; water conflicts
- 470 sq km of forest cleared
- 130km 2 of toxic wastewater
- Remote area; requires opencast mining
- Reduce USA's reliance on Middle East
- By 2030 will account for 16% of USA's oil demands
- Most oil supplies reached peak oil' reduce dependency (seek alternative sources)
- Parallel example: ANWR region
- Frontier hydrocarbons: lower grade of oil than conventional sources.
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- Longest and most expensive pipeline ever built (new energy pathway)
- The Russian, Chinese and Japanese governments all interested for geopolitical reasons:
- Needs energy to fuel economic growth
- Strait of Malacca is vulnerbale; existing energy pathway
- China and Russia have a joint political interest over the issue of US military presence
- China and Russia have a joint political interest over the issue of US militatry presence in Central Asia
- Almost no oil reserves of its own
- 2007; Japan imported 76% of its oil from Middle East ESPO could reduce Japan's oil dependency on the Middle East by 10-15%
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- Summer of 2000 unusually hot, winter 2000-1 was unusually cold
- Insufficient generating capacity
- Deregulation of power industry in 1996
- Manipulation of the Californian energy market; ENron wealthy US energy company; used supply and demand mechanism to ensure that energy prices remained high.
They did this by:
- obscuring origin of electricity
- deliberately reserving more power line usage than required. (overscheduling)
State declared that by 2010 20% of California's energy must come from renewable sources.
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- Need energy for urbanisation
- Up until 1993 it was self-sufficient in oil
- Production at China's largest oil fields now peaked and eploration has begun for new fields
- In its search for oil China is trawling the world; its foreign policy could now be said to be "resource based"
Japans energy insecurity:
- Japan's energy dependency is 80%
- Japan is the largest economy in Asia, yet it has the smallest energy reserves of any major economy
- 99% of its oil and gas is imported and energy security has long been a core goal of its domestic and foreing policy
- SInce the collapse of the USSR, Japan has been seeking to reduce its dependence on the Middle East by engaging with the new Central Asian countries.
- ESPO pipeline.
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