Geo-politics

Geo-politics

World Trade
1. Controlling resources allows you to control energy supply
2. Russia, Western Europe and the Arab states control large amounts of energy trade movements
Case Study: Russian Oil and Gas Exports
1. Late 1980s Russia's world superpower title threatened by collapsing political system
  1. Russia couldn't compete with rivals America so allowed TNCs to search for oil and gas fields
    1. Vast oil and gas fields found - Putin gains power and removes TNCs to nationalise oil/gas stocks
      1. By the end of 2006 this stabilisation fund was worth $80billion
World Energy Outlook
1. Agreed in 2010 but not legally binding
2. Long term goal to cut carbon emissions by 50% by 2050
3. Copenhagen Accord: Keep world temperature 2⁰C above current levels by 2020
Oil TNCs
1. Huge profits to be made in oil market, but massive financial funding initially required
  1. Exploration
  2. Drilling
  3. Extraction
  4. Transport/Storage
  5. Refining
  6. Distribution/Sales
2. Being able to control oil supply gives huge power to these TNCs
Case Study: Russia vs. Ukraine
1. Ukraine demand freedom from USSR (1991) but remains politically and economically close with Russia
  1. Ukraine become reliant on Russian gas
    1. Russian state gas suppliers (Gazprom) threaten to raise prices
      1. Ukraine refuse to pay so Russia cut gas supply off from them, and Europe
        Ukraine forced to pay market price

Resource summary

	Created by Jack EJ almost 11 years ago