Search

Begin New Search Topic Gas Political Geography Middle East

11. Economic Diplomacy: The impact of Russia’s growing role on the Lebanese crisis

Author:
Nawar Samad
Publication Date:
07-2021
Content Type:
Commentary and Analysis
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
A Russian business delegation visited Lebanon in late June 2021 to offer support to the country by cultivating projects in the oil sector, development plans for the energy industry as well as the ports in Beirut and Tripoli. For the past two years, Lebanon, which is going through the worst economic and financial crisis in its history, and has been trying to secure international aid to survive, is now facing the attractive Russian economic bailout offer. Although such an offer is welcomed by Lebanon, the Russian initiative raises concerns across the West, and particularly in the United States, which is in control of Lebanon’s banking system and still has significant influence on the state’s politics and financial sector. The United States believes that it is not possible to dissociate this Russian offer from Moscow’s desire to expand its influence in a region, in which it already established military presence and gained access to the Eastern Mediterranean, where a conflict is underway over investment of newly-discovered gas fields.
Topic:
Diplomacy, Economics, Financial Crisis, and Gas
Political Geography:
Russia, Eurasia, Middle East, and Lebanon

12. 2021 Resource Governance Index

Author:
Natural Resource Governance Institute
Publication Date:
12-2021
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Decisions about how the oil, gas and mining sectors are governed determine the wellbeing of the billion people living in poverty in resource-rich countries. Where policies and practices ensure informed, inclusive and accountable decision making, natural resources can enable fair, prosperous and sustainable societies, rather than undermine them. The climate crisis, the coronavirus pandemic and dramatic changes in global energy markets have increased the stakes of good governance. Complex decisions about how to enable the political and economic adaptations necessary for a managed phaseout of fossil fuels and responsible increase in production of transition minerals sit at the heart of this dual crisis. Governance of the oil, gas and mining sectors will play a central role in the transition away from fossil fuels and the return to progress against poverty. The Natural Resource Governance Institute (NRGI) produces the Resource Governance Index (RGI) as a diagnostic tool to measure the governance of oil, gas, and mining sectors in select countries and to highlight opportunities for policy and practice reforms at the global, regional and country levels. The 2021 RGI assesses the governance of extractive sectors in 18 countries, including both established mineral and hydrocarbon producers, as well as new and prospective entrants to natural resource production.
Topic:
Oil, Natural Resources, Governance, Gas, Mining, Sustainability, and Inclusion
Political Geography:
Uganda, Africa, Central Asia, Middle East, Mongolia, Colombia, South America, Azerbaijan, Lebanon, Tanzania, Mexico, Senegal, Nigeria, Morocco, Qatar, Tunisia, Peru, Ghana, Guinea, Guyana, and Democratic Republic of Congo

13. 2021 Resource Governance Index: Lebanon (Oil and Gas)

Author:
Natural Resource Governance Institute
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Assessed for the first time, Lebanon’s governance of its nascent oil and gas sector scored 53 out of 100 points in the 2021 Resource Governance Index. While Lebanon is not yet an oil and gas producer, its government has begun to establish an institutional framework to govern the sector before production begins. Lebanon received a “satisfactory” score of 73 points in terms of its ability to realize value from its sector according to the RGI, with the Lebanese Petroleum Administration (LPA) displaying signs of best practice in terms of extractive sector transparency. Nonetheless, “weak” revenue management and a “poor” enabling environment are causes for concern for the future of Lebanon’s resource governance.
Topic:
Corruption, Oil, Natural Resources, Governance, and Gas
Political Geography:
Middle East and Lebanon

14. Oil and Gas in Lebanon: Time to Rethink Expectations

Author:
Aaron Sayne and Laury Haytayan
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Lebanon’s hopes of “entering the club of oil producers” have not materialized. After almost a decade of high expectations, the country still has no proven reserves of oil or natural gas. Instead, the one well drilled so far, by partners Eni, Total and Novatek, revealed only trace amounts of gas. Now the government has extended the companies’ deadline to explore until August 2022 and has postponed a second oil and gas licensing round. Lebanon needs a new, more realistic vision of what oil and gas can do for it. For years, politicians in Beirut have told the public that exporting fossil fuels would transform the country’s failing economy, and that generating electricity from gas would turn around its mismanaged power sector. In this briefing we do not try to predict the future—especially considering how fast conditions on the ground are changing. Instead, we offer an evidence-based warning about the wisdom of Lebanon staking its economic or energy future on oil and gas. The conclusions and observations are based on analysis of the current situation and on the experiences of fossil-fuel dependent countries and other prospective new producers. The current moment, though very painful, offers the country a chance to build a new energy strategy that it can start to implement when its economic and political fortunes improve. This strategy should realistically and sustainably meet people’s needs, rather than make them worse.
Topic:
Oil, Natural Resources, Gas, Economy, and Fossil Fuels
Political Geography:
Middle East and Lebanon

15. The Scramble for the Eastern Mediterranean: Energy and Geopolitics

Author:
Valeria Talbot
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
Over the past few years, the Eastern Mediterranean has become a major hotspot for both natural gas and geopolitical competition. Natural gas discoveries in the last decade have attracted growing interest from regional countries and beyond. However, recent escalations in tensions and outright confrontations suggest that competition goes beyond the scramble for energy. Indeed, natural gas is just one of the factors that contribute to shaping security and geopolitical dynamics in the Eastern Mediterranean, which has emerged as a crucial strategic area in the broader Mediterranean and the Middle East. Moving from the analysis of these interconnected factors, this Report examines the strategy and the plethora of interests of regional and international players, as well as the interplay between cooperative and competitive dynamics in the region. What are the geopolitical, security, and energy interests of the countries involved? What are the implications on the regional security context of the moves and policies of regional and international powers?
Topic:
Natural Resources, Geopolitics, Gas, Strategic Competition, and Energy
Political Geography:
Middle East and Mediterranean

16. Supercharged: The EuroAsia Interconnector and Israel’s Pursuit of Energy Interdependence

Author:
Gabriel Mitchell
Publication Date:
02-2021
Content Type:
Special Report
Institution:
Mitvim: The Israeli Institute for Regional Foreign Policies
Abstract:
Contemporary analysis of Eastern Mediterranean geopolitics tends to focus on the discovery of offshore hydrocarbons, and how a desire to maximize commercial profits has spurred a realignment of regional interests. There is similar emphasis on how this realignment pushed some Eastern Mediterranean states into conflict with one another over maritime boundaries and drilling rights. But while natural gas pipelines may dominate political and analytical discourse, there are other infrastructure projects that deserve attention and shed further light on the region’s evolution and Israel’s role in this transitionary period. One example to support this claim is the EuroAsia Interconnector, an ambitious infrastructure project that intends to connect the European electrical grid via undersea cable from Greece to Cyprus, and Israel. Few in Israel are familiar with the interconnector. Unlike the much-publicized EastMed pipeline, the interconnector garners little attention. Ironically, there is a greater chance that the interconnector – whose cable would run along a similar route as the EastMed pipeline – will successfully link Israel and Europe in the Eastern Mediterranean, and not the more recognizable natural gas project.
Topic:
Regional Cooperation, Geopolitics, and Gas
Political Geography:
Europe, Middle East, Israel, Asia, Palestine, and Mediterranean

17. Under a Cloud: The Future of Middle East Gas Demand

Author:
Robin Mills
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
During the early years of the 21st century, the Middle East emerged as a fast-growing center not just of natural gas production and exports but also of demand. Including Egypt, total growth in annual demand from 2000 to 2017 was greater than any region except Asia, a feat more surprising when considering the region’s relatively small population and economy. That’s about to change, however. After two decades of rapid expansion of natural gas consumption in the Middle East, growth should drop through 2035 due to four factors: improved efficiency, higher gas prices, slower economic growth, and alternative generation. Demand growth was driven by low, subsidized gas prices intended to spur economic growth, encourage energy-intensive industrialization, and share some benefits with the local population. But budget deficits and unsustainably rising domestic energy consumption have encouraged regional governments to cut subsidies and introduce efficiency policies, particularly since the fall in oil prices in late 2014. Industrial demand growth is also poised to fall as the Middle East’s key competitive advantage was its low energy and feedstock cost. The analysis undertaken in this paper to project future gas demand in the Middle East yields significantly lower estimates than forecasts by a number of international bodies (IEA, GECF, BP, ExxonMobil), especially post-2030.
Topic:
Energy Policy, Natural Resources, Gas, and Trade
Political Geography:
Middle East

18. The 2020 Oil Crash’s Unlikely Winner: Saudi Arabia

Author:
Jason Bordoff
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
With 4 billion people around the world under lockdown as the coronavirus pandemic grows, demand for gasoline, jet fuel, and other petroleum products is in freefall, as are oil prices. The price of a barrel of crude has been so low in the United States that sellers recently had to pay people to take it off their hands. As a result, oil-dependent economies are reeling. In the United States, the largest oil producer in the world, the number of rigs drilling for oil has plummeted 50 percent in just two months, almost 40 percent of oil and gas producers could be insolvent within the year, and 220,000 oil workers are projected to lose their jobs. Around the world, petrostates from Nigeria to Iraq to Kazakhstan are struggling and their currencies tanking. Some, like Venezuela, face an economic and social abyss. While 2020 will be remembered as a year of carnage for oil nations, however, at least one will most likely emerge from the pandemic stronger, both economically and geopolitically: Saudi Arabia.
Topic:
Energy Policy, Oil, Natural Resources, and Gas
Political Geography:
Middle East, Saudi Arabia, and Gulf Nations

19. The Lebanese Crisis and the Mirage of Natural Gas

Author:
Benedetta Brossa
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Lebanon is teetering on the brink of collapse as mounting economic, political and geopolitical pressures put unprecedented stress on the country’s institutional – and deeply sectarianised – setup. In October 2019, when large scale anti-establishment protests erupted across the country, what has been described as the Lebanese “Ponzi scheme”,[1] a shady mechanism through which the country was able to attract continuous injections of foreign currency to sustain Lebanon’s financial system with artificially inflated interest rates, came to a breaking point. The value of the Lebanese lira dropped significantly, as have socio-economic conditions for large parts of the population. Then came the massive explosion in Beirut, the latest, severe blow to the country’s economy, already suffering from a dysfunctional political apparatus, the recent default on the state’s debt in March 2020 and the COVID-19 pandemic. The tragic explosion reignited popular anger. Lebanese citizens renovated their grievances against the pervasive corruption and sectarianism that has dominated Lebanon’s confessional system, leading the country to the brink of bankruptcy.
Topic:
Natural Resources, Gas, Economy, and Domestic Policy
Political Geography:
Middle East, Lebanon, and Mediterranean

20. Energy sector diversification: Meeting demographic challenges in the MENA region

Author:
Bina Hussein
Publication Date:
01-2020
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
Countries in the Middle East and North Africa (MENA) region are expected to witness a substantial growth in population over the next three decades. Many of the hydrocarbon-rich nations in this region will need to meet a commensurate increase in job demand. This report focuses on four nations that are predominantly reliant on the oil and gas sector: Saudi Arabia, the United Arab Emirates (UAE), Kuwait, and Algeria. In all four nations, the majority of the local population is employed in the public sector, which, in the long term, will become economically unsustainable. In order to meet the growing job demand, these nations must both diversify their economies beyond the energy sector and expand their energy sectors beyond hydrocarbons. Doing so will create important employment opportunities in new industries. Saudi Arabia, the UAE, and Kuwait all have strategies in place that, if followed, could pave the way towards a diversified knowledge-based economy. Algeria, on the other hand, is at a crossroads. Even as it is undergoing a political transition, the transition can create opportunities for the new government to change the country’s course and push economic reforms that are not only aimed at lowering the current unemployment rate but also at making the private sector more enticing. Additionally, all four nations will need to take steps to increase female participation in the workforce by easing current restrictions and making labor laws more favorable towards women. The energy sector plays a large role in the economies of all four nations. This sector has a critical role to play in efforts to diversify the economy and teach skills that will be beneficial in the future or can be applied in other sectors as well. Moreover, all four nations also have sovereign wealth funds that either play, or can play, a key role in diversifying the economy, strengthening existing industries, and helping to create new industries altogether. This report offers the following recommendations on how these four nations can work towards meeting demographic challenges in relation to the economy, specifically the role of the energy sector: Governments can strengthen the private sector through increased foreign investment and by incentivizing entrepreneurship through reforms that open up the economy and make it more lucrative for investors. Governments can create laws and support structures that encourage women to work and increase female participation in the workforce. Opportunities should be provided to teach skills and impart knowledge relevant to the job market that will also be relevant in the future. Lessons should be learned from the experience of the energy sector and leveraged to achieve successes in other areas. For example, the state-owned oil and gas companies have successfully set up a structure that allows them to not only invest in their employees but also take care of the community by offering health care services, education, and more.
Topic:
Demographics, Energy Policy, Markets, Oil, Governance, Geopolitics, Gas, Renewable Energy, Fossil Fuels, and Transition
Political Geography:
Middle East, North Africa, and Gulf Nations