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Home Archive Feb. 2009 Issue

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Fifty Years to OPEC: Time to Break the Oil Cartel

“Technology is a real enemy for OPEC” (Sheikh Ahmed Zaki Yamani, former Saudi oil minister)

OPEC is celebrating its fiftieth birthday and the world should take note. OPEC certainly will. Through the cartelization of the world’s most strategic commodity, oil, it wields inordinate power built with the wealth of world oil consumers. This needn’t be the case. Solutions exist today in the form of technologies readily adaptable to petroleum-fired combustion engines. Alternative fuels exist which can compete with the cost per gallon of a gasoline-driven vehicle. But political inertia, among other barriers, has inhibited individuals and nations alike from breaking oil’s stranglehold over transportation fuel. Oil still  rules. Clearly, it is time to break this paradigm.

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Brazil's Big Oil Play: How This Nation is Charting National Energy Security

Brazil's Big Oil Play: How This Nation is Charting National Energy Security
Brazil for decades has marched towards national energy security by combining a national push towards integrating ethanol into its national fuel mix, accompanied by the large scale introduction of flex-fuel vehicles. Brazil has now accelerated its national energy security objectives through the discovery and exploitation of new  'pre-salt' oil reserves. Over the next five years Brazil may challenge the status-quo of the world's oil architecture with output levels equal to some of OPEC's largest producers. How the country evolved to this envious position is the subject of the following article by first-time JES contributor Mark Langevin.
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Bringing Energy Security to East Central Europe: Regional Cooperation Is the Key

The energy challenges facing Central and Southeastern Europe (CSEE) are formidable. For the most part these states represent relatively small markets. While inter-connectors are being built for trans-border energy and power transmission and distribution, taken as a whole the region is nowhere near the creation of an integrated network that would allow for, as an example, reverse flow of natural gas across many or all borders during a time of crisis. The region also needs consistent and stable cross-border regulatory policies, the creation of bulwark-infrastructure that would allow for sufficient economies of scale consistent with large scale foreign investment. Another necessary adjustment is for the region to have a common carrier system. Former US Ambassador and long-time friend of JES Keith Smith looks at some of these problems in depth with a close look as well at Russia’s role and impact on CSEE energy security.
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The Water-Energy Conundrum: Can We Satisfy the Need for Both?

The Water-Energy Conundrum: Can We Satisfy the Need for Both?

Two-thirds of the world’s population lives within range of any given coastline. Yet by 2025, 40 percent of the world’s population will be living in countries experiencing significant water shortages. According to some calculations, the amount of sunlight hitting the earth's surface in one hour is enough to power the planet for an entire year. So what is the conundrum in the water-energy nexus?  The fact is that most of the earth's water is seawater unfit for human consumption. Most of the world's fresh water requires energy for treatment and distribution, and literally all power generation requires water for processes like cooling and for the extraction of resources on which it depends. In our ongoing commitment to exploring the relationship between energy and water, long-standing JES contributor Allan Hoffman takes a thoughtful look  at our need for both of these goods in a world increasingly strained by resource availability and challenged by the absolute need to provide both to an expanding world population.

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50 Years Later: OPEC's Continuing Threat to American Security

Just run the numbers and the message is clear: OPEC's present and future oil market dominance is a clear and present danger to long-term US national security interests. Outside the narrow paradigm of 'we need' (their oil) and 'they want' (our money), mutual cooperation suffers on a much broader host of international security, environmental and political issues. In July 2010, the US imported more oil from OPEC member states than in any other month since President Obama took office. Our economic security, our ability to protect our national interests, and our ability to stop the hemorrhage of US financial assets are all at stake. Dr. Nancy E. Brune crunches the numbers and tells us where we stand on the occasion of the cartel's 50th anniversary.
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Understanding Resource Nationalism in the 21st Century

Understanding Resource Nationalism in the 21st Century

A frequent topic in energy security circles is the relationship between international oil companies (IOCs) and national oil companies (NOCs) and what makes them tick.  However, in carrying through such an analysis, one needs to scratch beneath the surface and examine the regulatory, budgetary, commercial and national security environments in which both sets of companies must operate.  Contributors Llewelyn Hughes and Sean J.  Keyling offer a highly nuanced analysis of the policy environments that US oil and fuel companies operate within, using two case studies involving China's 2005 bid for Unocal and the evolution of ethanol as a transportation fuel in the US.  In doing so, they offer a fresh framework for analysis that inclusively addresses how the energy security debate stretches far beyond national security objectives and is impacted by a set of more local or regional policy issues.  

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The Role of Natural Gas and Central Asia in Indian Energy Security

The Role of Natural Gas and Central Asia in Indian Energy Security
India's gas outlook is currently upbeat with new finds and potential shale gas prospects in the hopper.  However, JES Contributor Shebonti Ray Dadwal of India's Institute for Defence Studies and Analysis predicts that in the long term India will in all likelihood have to import gas, assuming that the gas market develops as envisaged and the price suits India. New Delhi has long sought a role in Central Asia’s energy sector for strategic considerations, but has met with little success so far. 
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Losing the Energy Battle: How and Why the US and EU Need to Engage the Black Sea Region

Losing the Energy Battle: How and Why the US and EU Need to Engage the Black Sea Region

The Black Sea region is hard for many to pinpoint yet one of the most vitally important regions to European energy security.  While states across the region over the past decade have transformed into NATO and EU Member States, Western interests have failed to expand the region’s energy infrastructure by bolstering important projects; the BTC and SCP projects now completed are the only exceptions.  While Western interests have been 'negotiating' the Nabucco concept, China has completed Central Asian export projects from Kazakhstan and Turkmenistan.   Concurrently, Russia's energy imperialism is growing unimpeded as its expands its interests across the Black Sea region to the dismay of Western interests.  Where the region is headed, why it is important, and what needs to be done is covered by JES Contributor Sohbet Karbuz.

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Latin America: A Blind Spot in US Energy Security Policy

Latin America: A Blind Spot in US Energy Security Policy

Failure of the United States to adequately engage its Latin American partners, on whom American consumers depend for a full one-fourth of their oil supply, is the Achilles heel not only of American foreign policy, but of its energy policy as well.  Contributor, Dr. Nancy Brune of Sandia National Lab, lays out what are some of the cascading effects of America's 'unfocused engagement' with our neighbors.  These effects include creeping Russian, Iranian and Chinese influence in countries of importance to US national security interests, not the least of which where energy is concerned.

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