Political Economy of Global Energy

Several major trends are currently challenging the established system of global energy relations, most importantly the rise of new consumers (notably China and India) and the increasing role of state players on oil and gas markets. These trends entail geopolitical implications, as, for instance, an increasing share of the world’s oil and gas reserves is located in politically unfavorable regions or as consuming nations tend to engage in tougher competition over scarce resources. More importantly, however, these trends are profoundly transforming the dynamics of the oil and gas markets and the institutions that structure global energy relations, including emergency response mechanisms, trade and investment agreements, or the way major market players finance their endeavors. Focusing on the ‘rules of the game’ in oil and gas, this graduate course introduces students to the political economy of global energy and examines the structural logics of the institutions that govern international oil and gas relations. At the same time, it discusses the potentials of strategies to meet the energy challenges of the 21st century in terms of security of supply at affordable prices and good governance.