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92. Energy: Factor of Stability or Conflict in the Eastern Mediterranean?
- Author:
- Marika Karagianni
- Publication Date:
- 07-2021
- Content Type:
- Working Paper
- Institution:
- Hellenic Foundation for European and Foreign Policy (ELIAMEP)
- Abstract:
- Security of critical economic and energy infrastructure has become a key element in the agenda of both the EU and NATO. The global balance between energy producers and energy importers needs also to be respected in order to secure the smooth operation of global economy and trade. Global energy organizations like OPEC and GAS OPEC see to that. Constructive, multilateral energy diplomacy via the reinforcement of the EMGF (East Med Gas Forum) is considered as the optimum solution to any destabilizing factor in the region. The Eastern Mediterranean has the potential to become a gas supply source for the EU in the future, alternatively to Russia, which is why it has been identified by Brussels as a future gas diversification source. The official strategy of Cairo is to develop indigenous natural gas resources, with the double aim to increase gas production rates and to export significant amounts to Europe in the immediate future. Egypt is bound to lead gas exports of the Eastern Mediterranean countries and diversification for Europe, through its LNG terminals. The East Med pipeline could follow later on.
- Topic:
- Energy Policy, Gas, Political stability, and Conflict
- Political Geography:
- Russia, Europe, North Africa, Egypt, and Mediterranean
93. 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
94. 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
95. 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
96. 2021 Resource Governance Index: Azerbaijan (Oil and Gas)
- Author:
- Natural Resource Governance Institute
- Publication Date:
- 11-2021
- Content Type:
- Policy Brief
- Institution:
- Natural Resource Governance Institute
- Abstract:
- Azerbaijan’s oil and gas sector scored 56 points out of 100 in the 2021 Resource Governance Index (RGI), up by nine points since the 2017 RGI. The country’s ability to realize value from the sector and its overall “enabling environment” deteriorated since the last assessment, but revenue management improved by 35 points and now places in the “good” performance band. Key messages: Governance of licensing received a “failing” 11 points, due to a lack of rules and disclosures in the licensing process, as well issues regarding disclosure of officials’ financial interests and identification of the beneficial owners of companies involved in the sector. The governance of local impacts received a “failing” score, with issues both in terms of the laws and disclosures of environmental and social impact assessments and environmental mitigation plans. SOCAR, the state-owned oil producer, scored in the lower end of the “satisfactory” performance band, with commodity sales rules and disclosures especially problematic. The implementation of fiscal rules and their monitoring boosted the national budgeting subcomponent score by 37 points since the 2017 RGI. SOFAZ, the country’s sovereign wealth fund, received a “good” score due to improvements in both the legal framework and disclosures.
- Topic:
- Environment, Oil, Natural Resources, Governance, and Gas
- Political Geography:
- Central Asia and Azerbaijan
97. Managing Senegal’s Oil and Gas Revenues
- Author:
- William Davis, Andrew Bauer, and Papa Daouda Diene
- Publication Date:
- 12-2021
- Content Type:
- Policy Brief
- Institution:
- Natural Resource Governance Institute
- Abstract:
- As of late 2021, Senegal is on the cusp of becoming a significant oil and gas producer. The revenues that it can expect to mobilize present it with an important opportunity to speed the country’s development by increasing public investment. In preparation for this, Senegalese authorities are currently revising the country’s framework for managing its oil and gas revenues, which remains a work in progress. The authors of this report evaluate various aspects of Senegal’s policy framework for managing oil and gas revenues and share recommendations as to how it could be strengthened.
- Topic:
- Oil, Natural Resources, Gas, and Revenue Management
- Political Geography:
- Africa and Senegal
98. Submarine Collision Highlights Turbulent South China Sea
- Author:
- Chin Yoon Chin
- Publication Date:
- 11-2021
- Content Type:
- Working Paper
- Institution:
- Maritime Institute of Malaysia
- Abstract:
- Navigating through or under the water can be very trying when the area that one is transiting or operating is not well surveyed and charted. A vast area in the Spratly and Paracel island chain in the South China Sea is covered with corals and seamounts which could grow or pop up after a seismic disturbance. It is believed that there are vast areas of oil and gas deposits and precious metal in its depth, and it is also a rich fishing ground for these states bordering the South China Sea. For the past two decades or so, six littoral parties (China, The Philippines, Malaysia, Vietnam, Brunei and Taiwan) have staked claims over this body of water. In recent years, the United States has been challenging China’s legitimacy to the claim by conducting freedom of navigation operations (FONOPs) through China’s claimed areas. Why the US employed a submarine-like USS Connecticut to the South China Sea and for what purpose is anyone’s guess. Whatever task the submarine had undertaken, if it had operated within the confine of the gazetted sea lanes, it would not have run into this incident. The most likely situation was it operated “outside the normal” operational area when the incident occurred. It is believed that China’s underwater technology has improved over the last decades. This incident, in a way, has hyped up military activities in the South China Sea. The turbulence will not subside but will result in further escalation of tension which all the countries in this region would not want it to happen. To manage and mitigate tension, confidence-building and dialogues among all parties concerned are necessary to set aside differences, have mutual respect, and achieve the common goal of enhancing safe navigation and protecting the environment, instead of creating doubts and suspicions.
- Topic:
- Energy Policy, Oil, Natural Resources, Hegemony, Gas, Maritime, and Rivalry
- Political Geography:
- China, Asia, North America, and United States of America
99. The Strategic Benefits of the Southern Gas Corridor
- Author:
- Vitaliy Baylarbayov
- Publication Date:
- 04-2021
- Content Type:
- Journal Article
- Journal:
- Baku Dialogues
- Institution:
- ADA University
- Abstract:
- At the end of 2020, the Southern Gas Corridor became fully operational. This marked the completion of a journey that began a decade ago when the government of Azerbaijan and the State Oil Company of the Azerbaijan Republic (SOCAR) took a strategic decision to launch a major natural gas export project. The Southern Gas Corridor is one of the largest and the most expensive gas supply projects in the world built to date. In December 2013, SOCAR and its partners signed a Final Investment Decision (FID) to establish a gas pipeline corridor from Azerbaijan through Georgia, Turkey, Greece, and Albania before ending in Italy. A branch pipeline is now under construction to Bulgaria, which is expected to be completed in the second half of 2021. In July 2018, the project supplied its first gas to the Turkish market and went on to change the dynamics of that country’s gas market, whereby Azerbaijan is now one of its top gas suppliers. On December 31st, 2020, inaugural commercial gas supplies arrived from the Caspian into Europe, signaling the commencement of the Southern Gas Corridor’s full operations. For Azerbaijan, the Southern Gas Corridor provides a major source of revenue unlinked to the global oil market; the project also strengthens Baku’s links with its neighbors and Europe. For SOCAR—as operator of components of the project and investor in all its segments—the project’s success represents a major step in the company’s transition from a national to an international energy company. The Southern Gas Corridor provides new gas supplies to Turkey, Georgia, and Europe and is a platform for increased supplies to these markets and also can be extended to reach additional markets in Europe. With the completion of the first stage of the Southern Gas Corridor, Azerbaijan and SOCAR, together with their partners, are examining strategies for the next phase of the corridor’s development.
- Topic:
- Energy Policy, International Trade and Finance, Natural Resources, and Gas
- Political Geography:
- Europe, Asia, and Azerbaijan
100. The Southern Gas Corridor and the New Geopolitics of Climate Change
- Author:
- Morena Skalamera
- Publication Date:
- 04-2021
- Content Type:
- Journal Article
- Journal:
- Baku Dialogues
- Institution:
- ADA University
- Abstract:
- It has been argued that the U.S. shale revolution, the Trump Administration’s energy policies, and the global shift towards low‑carbon energy sources and renewables have contributed to shape a new energy order—one that challenges the market power traditionally enjoyed by petro‑states. Nowhere are these developments more relevant than in Azerbaijan, as the country’s expensive investments in the Southern Gas Corridor come under increasing pressure. Unless Azerbaijani gas can be decarbonized at a competitive cost, it may risk becoming redundant within a couple of decades as Europe embraces a greener future. Geopolitics and Geo‑economics The Southern Gas Corridor (SGC) is a $45bn mega‑project ($25bn for the development of the Shah Deniz II field and at least $15bn for the delivery system) to supply natural gas from the Caspian Sea to Europe and, by so doing, reduce reliance on Russian imports. This is a priority that has taken on urgency in the wake of Russia’s 2014 annexation of Crimea and the sharp deterioration in relations between Moscow and Brussels that ensued. Currently, the SGC is made up of two pipelines to deliver gas from Azerbaijan’s Shah Deniz II field to Turkey and Europe—one called TANAP that is already operational and runs the length of Turkey, and another known as TAP stretching from Turkey’s border with Greece across Albania to Italy, which started pumping gas in late 2020. This is how a leading ADA University policy expert described the situation to me in October 2020, in light of technical delays in the pipeline’s inauguration and the big changes in energy markets described above: “the TAP pipeline is 90 percent completed and will be inaugurated soon. Unlike oil pipelines, whose flexible delivery to the end‑consumer can be sorted out once they are built— as oil travels via tanker, rail, etc.— gas pipelines are more rigid investment endeavors. [...] You don’t agree on a gas pipeline unless you have secured a buyer on the other end.” While natural gas supplies from Azerbaijan’s Shah Deniz field are already contracted, the project has seen numerus twists and turns since it was signed with great fanfare at the end of 2013. The SGC is an expensive endeavor and the institutions that lined up to finance it are a testament to the degree of strategic importance it carries for the EU. The project has, indeed, been designated as one of the EU’s “priority projects.”
- Topic:
- Climate Change, Energy Policy, Environment, Natural Resources, and Gas
- Political Geography:
- Europe, Asia, and Azerbaijan