The Changing Energy Map
There are a handful of countries that have major impacts on global energy markets. Major producers such as Saudi Arabia or Venezuela are significant because they contribute to the supply side of the global bathtub. Large consuming countries such as India and China also have a profound influence on global energy markets by increasing the demand side of the equation. The “Shale Revolution” has facilitated profound changes in global energy markets. Understanding potential changes from new oil and gas production technologies provides insights on the changing geography of the oil market and underscores potential security concerns. As more new oil and gas production technologies come online, the geopolitics of global energy will shift as conventional producers lose market share. New entrants into the global market push out incumbents, who often rely on oil as a primary source of government revenue – as is the case in many Middle Eastern and African countries. We highlight the implications of new production technologies for potential winners and losers in a changing global oil market. Likewise, new production can alter trade flows which may have implication for diplomatic relationships between oil trading countries.
While the list of countries below is not exhaustive, it provides an introduction to the major players in the global energy system and their connection, if any, to U.S. national security.
World proved oil reserves, 2013. (U.S. Energy Information Administration)
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