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An energy superpower is a country that supplies large amounts of energy resources (crude oil, natural gas, coal, etc.) to a significant number of other countries, and therefore has the potential to influence world markets for political or economic gains. Energy superpower status might be exercised, for example, by significantly influencing the price on global markets, or by withholding supplies. Most recently, the term "energy superpower" is increasingly used to characterize nations at the forefront of energy transition and the development of renewable energy resources.[1][2][3]
The term "energy superpower" lacks a precise scholarly definition and is primarily a political term. It is not a concept rooted in rigorous academic or scientific categorization but rather a label used in political discourse to describe countries that wield significant influence in the global energy landscape. This term is subject to interpretation and can be applied differently by various individuals or organizations, depending on their specific agendas or perspectives. As a result, the meaning and applicability of the term "energy superpower" may vary.
Countries dependent on Russian natural gas for domestic consumption (2006)
The discourses surrounding Russia's energy wealth play a crucial role in Vladimir Putin's attempts to restore Russia's great power status. Some scholars have noted that, although Putin may avoid explicitly using the term "superpower," the idea of Russia as an energy superpower is an integral part of the ideology developed by his regime.[13][14][15] This idea emphasizes Russia's significant role in the global energy landscape and frames it as a key player in international politics. However, Russia's status of energy superpower and the strategic implications it carries have been called into question by many experts. As Vladimir Milov, of the Carnegie Endowment for International Peace, says:
The "energy superpower" concept is an illusion with no basis in reality. Perhaps most dangerously, it doesn’t recognize the mutual dependence between Russia and energy consumers. Because of political conflicts and declining production, future supply disruptions to Europe are likely. As a result, European gas companies may likely someday demand elimination of the take-or-pay conditions in their Russian contracts. This would threaten Gazprom’s ability to borrow. Putin’s attempt to use energy to increase Russian influence could backfire in the long run.[16]
In the mid-2010s, former Prime Minister of Canada, Stephen Harper, asserted that Canada should be considered an energy superpower. By advertising Canada as an oil supplier on the international level, Harper defined it as a “reliable producer in a volatile unpredictable world” who can offer its oil-thirsty partners “a transparent regulatory system and a commitment to open markets”.[17] This viewpoint found support among conservative political activists and public intellectuals, such as Ezra Levant, the author of Ethical Oil (2011). However, scholars,[18][19][20][21]Indigenous peoples' organisations and activists,[22] and environmental activists, including such prominent Canadian environmentalists as Andrew Nikiforuk[23] and David Suzuki,[24][25] contested representations of Canada as an energy superpower. These critics raised concerns about the environmental impact of Canada's oil sands (e.g., tailing ponds, air pollution and deforestation) in the context of climate change, as well as socio-economic factors such as the potential repercussions on local communities, the equitable distribution of economic benefits, and the overall social implications of prioritizing the oil industry.
Venezuela
In the 2000s, Venezuela was widely described as a new energy superpower. For example, Manik Talwani, a geophysicist at Rice University, argued in 2007 that Venezuela will likely to join Saudi Arabia in attaining the status of energy superpower.[10] Citing its enormous potential reserves (1.2 trillion potential barrels), Talwani claimed that Venezuela will become an energy superpower in the next few decades as oil production declines elsewhere. However, Venezuela's descent into economic and political chaos has become a cautionary tale about the complexities of managing resource wealth in developing countries. The country's situation serves as a stark reminder of the challenges and potential pitfalls associated with overreliance on natural resources, particularly oil, for economic development.[26][27]
Saudi Arabia
As a leading producer and exporter of crude oil, Saudi Arabia has substantial influence over the global oil market and has been labeled as an energy superpower. The country has the capacity to produce and export significant volumes of crude oil, making it a linchpin in the global oil supply chain. Saudi Arabia is a founding member of the Organization of the Petroleum Exporting Countries (OPEC), an intergovernmental organization that plays a central role in setting oil production and pricing policies. As a leading OPEC member, Saudi Arabia has the ability to influence oil production quotas, which directly affects global oil prices.
↑ Balamir Coşkun, Bezen (Winter 2009). "Global Energy Geopolitics and Iran"(PDF). Uluslararası İlişkiler. 5 (20). International Relations Council of Turkey: 179–201. Archived from the original on April 1, 2014.{{cite journal}}: CS1 maint: unfit URL (link)
Petroleum, also known as crude oil or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name petroleum covers both naturally occurring unprocessed crude oil and petroleum products that consist of refined crude oil.
The Organization of the Petroleum Exporting Countries is an organization enabling the co-operation of leading oil-producing countries in order to collectively influence the global oil market and maximize profit. It was founded on 14 September 1960 in Baghdad by the first five members. The organization, which currently comprises 12 member countries, accounted for an estimated 30 percent of global oil production. A 2022 report further details that OPEC member countries were responsible for approximately 38 percent of it. Additionally, it is estimated that 79.5 percent of the world's proven oil reserves are located within OPEC nations, with the Middle East alone accounting for 67.2 percent of OPEC's total reserves.
Oil sands, tar sands, crude bitumen, or bituminous sands, are a type of unconventional petroleum deposit. Oil sands are either loose sands or partially consolidated sandstone containing a naturally occurring mixture of sand, clay, and water, soaked with bitumen, a dense and extremely viscous form of petroleum.
Petroleum politics have been an increasingly important aspect of diplomacy since the rise of the petroleum industry in the Middle East in the early 20th century. As competition continues for a vital resource, the strategic calculations of major and minor countries alike place prominent emphasis on the pumping, refining, transport, sale and use of petroleum products.
The Canadian Association of Petroleum Producers (CAPP), with its head office in Calgary, Alberta, is a lobby group that represents the upstream Canadian oil and natural gas industry. CAPP's members produce "90% of Canada's natural gas and crude oil" and "are an important part of a national industry with revenues of about $100 billion-a-year ."
Heavy crude oil is highly viscous oil that cannot easily flow from production wells under normal reservoir conditions.
The price of oil, or the oil price, generally refers to the spot price of a barrel of benchmark crude oil—a reference price for buyers and sellers of crude oil such as West Texas Intermediate (WTI), Brent Crude, Dubai Crude, OPEC Reference Basket, Tapis crude, Bonny Light, Urals oil, Isthmus, and Western Canadian Select (WCS). Oil prices are determined by global supply and demand, rather than any country's domestic production level.
Russia's energy policy is presented in the government's Energy Strategy document, first approved in 2000, which sets out the government's policy to 2020. The Energy Strategy outlines several key priorities: increased energy efficiency, reducing the impact on the environment, sustainable development, energy development and technological development, as well as improved effectiveness and competitiveness. Russia's greenhouse gas emissions are large because of its energy policy. Russia is rich in natural energy resources and is one of the world's energy superpowers. Russia is the world's leading net energy exporter, and was a major supplier to the European Union until the Russian invasion of Ukraine. Russia has signed and ratified the Kyoto Protocol and Paris Agreement. Numerous scholars posit that Russia uses its energy exports as a foreign policy instrument towards other countries.
United States energy independence is the concept of eliminating or substantially reducing import of petroleum to satisfy the nation's need for energy. Some proposals for achieving energy independence would permit imports from the neighboring nations of Canada and Mexico, in which case it would be called North American energy independence. Energy independence is espoused by those who want to leave the US unaffected by global energy supply disruptions and would restrict reliance upon politically unstable states for its energy security.
Energy security is the association between national security and the availability of natural resources for energy consumption. Access to cheaper energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries has led to significant vulnerabilities. International energy relations have contributed to the globalization of the world leading to energy security and energy vulnerability at the same time.
The Energy in Russia is an area of the national economy, science, and technology of the Russian Federation, encompassing energy resources, production, transmission, transformation, accumulation, distribution, and consumption of various types of energy.
Oil reserves in Canada were estimated at 172 billion barrels as of the start of 2015 . This figure includes the oil sands reserves that are estimated by government regulators to be economically producible at current prices using current technology. According to this figure, Canada's reserves are third only to Venezuela and Saudi Arabia. Over 95% of these reserves are in the oil sands deposits in the province of Alberta. Alberta contains nearly all of Canada's oil sands and much of its conventional oil reserves. The balance is concentrated in several other provinces and territories. Saskatchewan and offshore areas of Newfoundland in particular have substantial oil production and reserves. Alberta has 39% of Canada's remaining conventional oil reserves, offshore Newfoundland 28% and Saskatchewan 27%, but if oil sands are included, Alberta's share is over 98%.
The proven oil reserves in Venezuela are recognized as the largest in the world, totaling 300 billion barrels (4.8×1010 m3) as of 1 January 2014. The 2019 edition of the BP Statistical Review of World Energy reports the total proved reserves of 303.3 billion barrels for Venezuela (slightly more than Saudi Arabia's 297.7 billion barrels).
EnergyinSaudi Arabia involves petroleum and natural gas production, consumption, and exports, and electricity production. Saudi Arabia is the world's leading oil producer and exporter. Saudi Arabia's economy is petroleum-based; oil accounts for 90% of the country's exports and nearly 75% of government revenue. The oil industry produces about 45% of Saudi Arabia's gross domestic product, against 40% from the private sector. Saudi Arabia has per capita GDP of $20,700. The economy is still very dependent on oil despite diversification, in particular in the petrochemical sector.
Energy security of the People's Republic of China concerns the need for the People's Republic of China to guarantee itself and its industries long- term access to sufficient energy and raw materials. China has been endeavoring to sign international agreements and secure such supplies; its energy security involves the internal and foreign energy policy of China. Currently, China's energy portfolio consists mainly of domestic coal, oil and gas from domestic and foreign sources, and small quantities of uranium. China has also created a strategic petroleum reserve, to secure emergency supplies of oil for temporary price and supply disruptions. Chinese policy focuses on diversification to reduce oil imports, which used to rely almost exclusively on producers in the Middle East.
A petrostate or oil state is a country whose economy is heavily dependent on the extraction and export of oil or natural gas. The presence alone of large oil and gas industries does not define a petrostate: major oil producers that also have diversified economies are not classified as petrostates due to their ability to generate income from various industries and sectors beyond the oil industry. Petrostates also have highly concentrated political and economic power, resting in the hands of an elite, as well as unaccountable political institutions which are susceptible to corruption.
The 2010s oil glut was a significant surplus of crude oil that started in 2014–2015 and accelerated in 2016, with multiple causes. They include general oversupply as unconventional US and Canadian tight oil production reached critical volumes, geopolitical rivalries among oil-producing nations, falling demand across commodities markets due to the deceleration of the Chinese economy, and possible restraint of long-term demand as environmental policy promotes fuel efficiency and steers an increasing share of energy consumption away from fossil fuels.
On 8 March 2020, Saudi Arabia initiated a price war on oil with Russia, which facilitated a 65% quarterly fall in the price of oil. The price war was triggered by a break-up in dialogue between the Organization of the Petroleum Exporting Countries (OPEC) and Russia over proposed oil-production cuts in the midst of the COVID-19 pandemic. Russia walked out of the agreement, leading to the fall of the OPEC+ alliance.
A global energy crisis began in the aftermath of the COVID-19 pandemic in 2021, with much of the globe facing shortages and increased prices in oil, gas and electricity markets. The crisis was caused by a variety of economic factors, including the rapid post-pandemic economic rebound that outpaced energy supply, and escalated into a widespread global energy crisis following the Russian invasion of Ukraine. The price of natural gas reached record highs, and as a result, so did electricity in some markets. Oil prices hit their highest level since 2008.
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