Energy is in the traditional, transformational, psychological, physical and spiritual forms. Examples include fossil, muscle, nuclear, renewable, hydrogen, magnetic, and Divine forces, all of which are essential to running the universe.
Energy drives civilization on Earth. It fuels economies, powers homes, and sustains all businesses. Businesses will shut down if they lack the energy to operate. But energy isn’t just a technical or economic issue—it’s intensely political.
Without a political will, mass-scale energy is hardly possible. Energy, one-sided, can drive the entire economy of the country. We had great examples like Saudi Arabia, though they are shifting from the core energy businesses to different ones. In many other countries, most of the GDP comes from the energy (Crude Oil) sector. If there is no political will, energy production and distribution will not occur, for example, in Venezuela.
The Global energy politics refers to the –
- strategic decisions of production, distribution, and consumption of energy resources
- Strategic alliances for energy supply, procurement, business, and other related areas.
- And the rivalries that emerge from the above two points.
Just imagine how critical energy politics is, especially when there are international organizations such as IEA, OPEC, UN, etc. involved in energy-related activities. Such activities involve production, cross-border transportation for distribution, and final consumption.
In today’s world, energy politics influences everything from climate policy to military strategy, trade agreements to diplomatic relations, diplomatic rivalries to war (trade war, sanctions, actual war, etc).
Let’s unpack this dynamic field and explore why it matters more than ever.
The Core of Global Energy Politics
Energy politics is a multi-factoral act. Global energy politics revolves around who controls or produces the energy, who consumes it, and how it moves across borders. The key players include:
- Nation-states: Countries like the U.S., China, Russia, and Saudi Arabia shape energy flows through policy, investment, and military power. They are either producer of multiple energies or are mass consumers. But the key point here is that they are all militarily and diplomatically strong enough to control energy activities.
- Multinational corporations: Giants like ExxonMobil, Gazprom, Halliburton, and BP influence supply chains and pricing.
- International organizations: The International Energy Agency (IEA), OPEC, and the UN set standards, monitor trends, and negotiate climate goals. As I mentioned above, if there are organizations involved in controlling the energy, how important is energy politics?.
- Emerging economies: Nations like India, Brazil, and Indonesia demand more energy as they industrialize, shifting global consumption patterns.
Energy politics isn’t just about crude oil anymore. It includes natural gas, coal, nuclear power, renewables, and even rare earth minerals used in green technologies. Energy politics also encompass energies that are converted using the above methods, such as electricity, steam, and heat.
Fossil Fuels: The Traditional Battleground
For over a century, fossil fuels—especially oil and gas—have dominated global energy politics. Control over these resources has triggered wars, created alliances, and driven foreign policies.
Every developed/powerful nation has tried to control its resources or at least their costs and consumption. Other countries either fall prey to the developed countries to sell the fossil fuels to them or suffer sanctions/wars/cold wars/forceful possession, etc.
The game was simple till now; you control the energy sources or control the diplomacy in energy politics and bend the world politics. But suddenly the game has changed.
When a powerful country clashes with another power, the fight begins for power and ego. China and India (independently) stood against the USA’s demand to stop Russian oil due to the Russia-Ukraine war; neither India nor China stopped. Energy is essential for developing nations like India. No other diplomacy can pressure India, which has its own independent diplomatic policy.
Nor did Europe stop buying gas to fulfil its energy requirements, especially in the winter season.
China has become the top purchaser of Russian oil.
Giant producers of fossil fuels –
- Middle East geopolitics often revolves around oil reserves. Conflicts in Iraq, Syria, and Yemen carry energy implications.
- Russia’s gas pipelines to Europe have become tools of leverage and coercion.
- U.S. shale production has reshaped global oil markets for a couple of years, reducing dependence on foreign oil and shifting diplomatic priorities.
Countries with abundant fossil fuels often wield disproportionate influence. But this power comes with volatility. Prices fluctuate—demand shifts. Environmental pressure builds.
The Rise of Renewables: A New Power Map
As climate change accelerates (we will see this topic below in detail), the world is pivoting toward clean energy. Solar, wind, hydro, and green hydrogen are transforming the energy landscape—and the politics that surround it.
Even in finance, there are special courses available, such as sustainability, climate/environmental risk, and sustainable engagement. The motive of all such professional courses is the same. The investments should be in industries that utilize sustainable, renewable energy and businesses that mitigate climate degradation risk.
- China leads in solar panel manufacturing and battery technology, positioning itself as a renewable superpower.
- Europe invests heavily in offshore wind and green hydrogen, aiming to decarbonise its economy.
- India expands solar capacity while balancing coal dependency, navigating a complex energy transition. There are incentives, grants, discounts, and other initiatives to encourage industries and households to move towards a sustainable era.
Many countries have pledged to reduce carbon emissions to zero by a specific deadline. The world calls zero carbon emissions net-zero.
Reneemissionscentralize er. Unlike oil, which concentrates wealth in a few regions, solar and wind can be harnessed almost anywhere. This shift threatens traditional energy powers and empowers new players.
This shift has prompted the traditional energy manufacturing countries to shift their business focus from fossil fuels to technology, tourism, shopping and other sustainable attractions. Dubai is the best example.
But the transition isn’t smooth. Supply chains for solar panels and batteries rely on rare earth minerals, often mined in politically unstable regions. The race for these materials introduces new geopolitical tensions.
Energy Interdependence and Vulnerability
No country operates in isolation, and neither do businesses. Energy interdependence creates both cooperation and vulnerability.
- Europe’s reliance on Russian gas exposed it to political blackmail during the Russia-Ukraine conflict. Yet Europe did not stop energy trade with Russia, despite imposing sanctions on Russia itself. That’s the big irony. EU countries want to speak about purchasing Russian oil by other countries, but are silent on their own purchases; that’s another irony.
- Japan’s dependence on Middle Eastern oil shapes its foreign policy and naval strategy.
- India’s energy imports from Russia and Iran attract scrutiny from Western allies, especially the USA and Europe. Despite having a choice of trading partners, many countries deliberately ignore their own purchases from Russia and pressure others to stop trade with Russia. How fair is that?
Energy security becomes a balancing act. Countries must diversify sources, build strategic reserves, and invest in domestic production—all while maintaining diplomatic ties.
Energy reserves
Every country estimates its daily energy requirements. As per the calculations, countries purchase oil on a mass scale. In the event of panic, countries may struggle to fulfil their daily energy requirements.
We all know that energy boosts GDP, and so it plays a vital role in a country’s growth. In the event of a panic, when fulfilling energy needs may become challenging, every country must prepare itself.
One way is to source it from other sources. Such trades hardly take place overnight unless the country has good diplomatic relations with other energy-producing countries.
Another way is to store the energy requirements for at least 15 days, if not a month. Building infrastructure to store energy is costly. If the area and population are large, then it may become the most expensive. Also, it carries risks of evaporation, leakage, explosion, theft, overcapacity, infrastructure failure, and environmental issues such as extreme heat, tsunamis, and waterlogging.
While eliminating most of these risks by carefully choosing the sites and taking reasonable steps to build world-class infrastructure, it only increases the overall cost of energy.
Nonetheless, storing the energy is extremely important, even if it is costly.
Conclusion
In this blog, we discussed about how global energy politics isn’t just about oil rigs and solar panels—it’s about power, justice, survival, and saving the environment.
Everyone needs energy to run their business, and so it shapes how nations interact, how economies grow and support their own people and other countries too, and how humanity responds to its greatest challenge: climate change.
In the next blog, we will delve deeper into what energy politics really is. Understanding this field will help us grasp the stakes behind headlines, the motives behind policies, and the future we’re all building—one kilowatt at a time.
I encourage you all to read my second blog on global energy politics
If you like this blog, please comment below and share it as well. I also encourage you to read my other blogs, especially on global politics, tariff war news, and other related topics.
What Is a Tariff War? – PolyBlogger.com
Effects of the ‘Tariff War’ on the USA Itself – PolyBlogger.com
TRUMP’S TARIFF WAR: IS “MAKE AMERICA GREAT AGAIN” REALLY WORKING? – PolyBlogger.com
