Flicking a switch for light, heat, or entertainment is a modern-day luxury that’s easy to take for granted. Flicking a switch for light, heat, or entertainment is a modern-day luxury that’s easy to take for granted.
But keeping the lights on is much more than paying bills on time, ensuring there’s wood for the winter burner, or keeping natural gas tanks full.
More than 84% of global energy needs depend on fossil fuels. Cars, heating systems, industry, and data storage are all major energy users. That means the current tussle between fossil fuels and clean energy sources is secondary to the immediate question: How can countries secure their energy supplies and keep the lights on, all at affordable prices?
Clearly, the impact of energy on national security and foreign policy is vast. The world’s growing population increases the pressure for natural resources. Everything from imports and exports to global oil prices present challenges for policymakers as they look to keep their citizens safe and energy secure. Let’s explore this complex topic to make sense of it all.
Understanding the Impact of Energy on National Security and Foreign Policy
National security means keeping a nation safe against threats like war, spying, or terrorism. A government’s foreign policy is how it deals with other countries. Relying on other nations for natural resources can present issues.
For example, any country that needs to trade with other governments to secure its energy supply doesn’t have energy independence. Fossil fuels like coal, crude oil, and natural gas dominate the global energy market and different countries need to access those resources for their own people.
Energy independence occurs when a state doesn’t need to import energy resources to meet domestic demand. The global supply doesn’t affect its energy production levels.
Energy security means predictable, consistent, reliable energy availability within a country. This includes things like the power grid, access to fossil fuels, renewable energy sources, and energy storage capabilities.
There’s a significant global influence for countries rich in those natural resources. Therefore, energy policy depends on what the countries with energy resources dictate or how they act.
For example, governments are increasingly aware of energy security following Russia’s invasion of Ukraine. Sanctions against Russian oil and natural gas exports sent global prices soaring, and many people saw huge rises in their energy bills. In contrast, countries with energy independence, such as Iceland, felt minimal impact on their energy supply.
Nations now also equate energy security as a way to promote national security. Countries with energy independence keep functioning no matter what happens internationally. Energy security also includes protecting energy infrastructure from physical and cyberattacks, such as when hackers paralyzed the Colonial Pipeline and its natural gas supply in May 2021.
The impact of energy on national security and foreign policy is a high-stakes game. Everything from economic growth to the ability to build large-scale power plants depends on it.
What Factors Influence Energy Security?
The International Energy Agency (IEA) defines energy security as: “the uninterrupted availability of energy sources at an affordable price.”
The principal factors that relate to energy security are energy’s:
- Accessibility
- Availability
- Affordability
- Reliability
Government policymakers must adapt their decisions to ensure the above-guaranteed energy security, both short-term and long-term.
Which Countries Influence Energy Security?
sourceImporters and exporters influence energy security with their ability to purchase power and supply it. Let’s start with crude oil. The top oil-production countries in recent years have been: Importers and exporters influence energy security with their ability to purchase power and supply it. Let’s start with crude oil. The top oil-production countries in recent years have been:
- United States (20% of global production)
- Saudi Arabia (12%)
- Russia (11%)
- Canada (6%)
- China (5%)
- Iraq (5%)
- United Arab Emirates (U.A.E.) (4%)
- Brazil (4%)
- Iran (4%)
- Kuwait (3%)
That’s 74% of the global crude oil supply in the hands of 10 countries and over half in just five states. In 2022, almost half of all oil exports come from five countries: Saudi Arabia (16.7%), Russia (8.9%), Canada (8.9%), United States (8.7%), and U.A.E. (8.4%). They have a big say on supply, and this can affect price.
What Is Coal’s Role in Energy Security?
Coal is still a massive part of the global energy economy. According to the IEA, China burned 56% of all coal in 2020, followed by India (9%) and the United States (6%).
The same names are busy mining coal, giving them some energy security over this supply. In 2021, China mined 47% of all coal, India 10%, and the United States and Indonesia 7% apiece.
But it isn’t Asia that exports its coal. In 2021, Australia exported over a third of all the coal on the global market. Indonesia’s exports accounted for nearly 20%, Russia around 18%, and the U.S. a little over 7%.
In Asia, we find two countries that rely heavily on coal imports. Japan and South Korea buy vast swathes of coal to power their economies, making their energy security vulnerable to global markets. Coal prices are very volatile and can have massive impacts on dependent economies.
What’s the Role of Natural Gas in Energy Security?
Some familiar names appear in the natural gas market. The United States produces about 23% of all natural gas, followed by Russia (17.4%) and Iran (6.4%).
Around 88% of America’s natural gas burns at home for domestic consumption, while Russia is the chief natural gas exporter. North America is the biggest user of natural gas, while Africa uses the least.
These figures also show the inequality in current energy systems. Africa has a 1.4 billion-strong population, about four times that of the United States. Yet Africa uses just under a fifth less natural gas than Americans.
How Do Countries Influence Energy Security Through Foreign Policy?
We’ve seen that there are big players in the energy markets based on a mix of population, economic power, and natural resources within that country’s boundaries. This is especially true in the 21st-century’s globalized economies. We’ve seen that there are big players in the energy markets based on a mix of population, economic power, and natural resources within that country’s boundaries. This is especially true in the 21st-century’s globalized economies.
The United States, Russia, China, and several Middle East countries hold considerable sway over global energy supplies. Russia’s recent actions in Ukraine show the security challenges facing countries when international politics take over.
For example, decisions have consequences. Europe announced it would stop importing Russian natural gas after the invasion of Ukraine. Russia turned off the main Nord Stream supply pipeline. Europe’s politicians said they would stop buying Russian oil, although, in reality, it was a price cap. Crude oil continued to flow out of Russia but via Asia and India, or to Europe at lower prices.
As such, Europe looked elsewhere for an energy transition. Up stepped the U.S. to supply liquefied natural gas (LNG) to Europe. The States became the world’s largest exporter of LNG in 2022 and could retain that crown in 2023.
These macro-policy decisions filter to the micro level. Studies suggest that household energy bills have doubled since Russia invaded Ukraine.
Countries can also manipulate the markets by flooding them with materials, like crude oil, reducing the prices, or drying up supply. This all affects other governments’ incomes and can cause political tensions.
How Does the Energy Sector Relate to National Security?
There are famous examples of how energy crises have been created by domestic and foreign policy. The U.S. Department of Defense supplied arms to Israeli forces during the 1973 Arab-Israeli War.
The OPEC nations retaliated and imposed an embargo on oil supplies to the U.S. Fuel shortages followed in America, with prices skyrocketing. It forced President Nixon to announce Project Independence—complete energy autonomy by 1980. Of course, Washington, D.C., didn’t achieve its aim.
In 1990, the Persian Gulf Iraq War saw U.S. troops land in Iraq after its regime, led by Saddam Hussein, had invaded Kuwait. Oil production in these oil-rich lands dropped, forcing another global price spike.
Climate change plays its part via extreme weather events. Renewable energy, like hydropower, can fail if the rain doesn’t come. The Chinese city of Sichuan lost 80% of its electricity-producing power during a severe drought last year, as rivers and reservoirs dried up, devastating its hydropower capabilities. Texas’ deadly winter storm in February 2021 decimated its power grid for weeks.
Cyber security is a new threat, with NATO highlighting the importance of safeguarding energy infrastructure from hackers. More than 40 attacks have occurred on various parts of the energy chain since 2017, from electrical substations to pipelines.
National security includes having a working society. Global events, supply chains, political decisions, war, and climate change events affect a nation’s security interests.
Which Countries Have Energy Insecurity?
The World Energy Council, accredited by the United Nations (UN), rates countries based on their energy security, equality, and environmental sustainability. Switzerland, Sweden, and Denmark lead their ratings for energy security, followed by the United Kingdom and Finland. The United States is 15th.
Many of the countries with energy insecurity are in Africa. The lowest performer of the 128 countries studied was Niger, then Congo, Chad, and Benin. Large countries like Pakistan (110th) and India (109th) don’t fare well. Oil-rich nations like Iraq (93rd) and Iran (74th) also have high energy insecurity.
How Does Energy Insecurity Impact Countries?
Energy security issues affect many aspects of daily life. The inability to rely on energy can provoke economic problems. Production troubles can lead to job losses, further reducing a country’s financial capabilities.
Severe energy security can bring poverty, human rights, and social issues, all of which can impact international investment opportunities. Severe energy access issues could cause problems at borders, with people looking for a better life if things go awry in their own land.
Looking at it from the other side, energy security can bring prosperity and growth for countries with energy resources.
How Did the U.S. Become an Energy Powerhouse?
In 2007, the U.S. government enacted the Energy Independence and Security Act with the George Bush administration in the White House. Echoing Nixon’s “Project Independence,” President Bush aimed to secure energy independence for Americans.
There was a considerable rise in shale gas excavation and ethanol production while reducing the country’s imports from OPEC countries. That’s one of the main reasons why the United States is now the top natural gas and oil producer globally.
There was also an emphasis on clean energy, researching greenhouse gas capture and storage capabilities, and driving to improve fuel economy. Alongside China, the U.S. is also leading the conversion to renewable energy sources like solar and wind. Renewables are key to energy security in the future.
What’s the Future of Energy Security?
Access to fossil fuels, hydrocarbons, and renewables is a possible new energy battlefield. Similarly, governments are also spurring their populations to utilize energy-efficiency methods to conserve this precious resource.
Climate change policies mean that many countries have pledged to reduce their greenhouse gas emissions to net zero by 2050. That means burning less coal, natural gas, and coal. Is there a Department of Energy willing to keep fossil fuels in the ground when faced with killing the lights?
Countries sitting on vast reserves of fossil fuels are varied. Venezuela has the largest oil reserves, with over a sixth of the world’s remaining barrels, a little more than Saudi Arabia, Canada, Iran, and Iraq. How will they act in the future?
The United States has the most proven coal reserves. At the same time, Russia sits atop almost a quarter of all the world’s natural gas reserves. Iran (17.3%) and Qatar (12.5%) are way ahead of fourth-placed United States (5.3%).
Competition to own, trade, and use these natural resources could have wide-ranging impacts. Energy-hungry countries with wealth could find that scarcity means previously friendly trading partners decide to keep their resources for themselves. Sadly, history is littered with examples of wars precipitated by the desire for another’s property.
Countries developing their renewable energy potential like solar, wind, hydropower, or thermal energy may improve their energy security.
Reviewing the Impact of Energy on National Security and Foreign Policy
Energy security brings risk and opportunity in equal measure. Climate change means that those with energy security today may not have it tomorrow if there’s no planning.
Countries like Morocco, previously addicted to coal, are becoming solar powerhouses. An undersea cable could see the U.K. importing 8% of its electricity from Morocco’s solar farms by 2030. These are seismic shifts of global power, all through energy.
Geopolitical tensions may come from energy transitions to renewable energy sources and squabbling over the remaining fossil fuels. Global warming may make areas uninhabitable, putting considerable strain on borders and governments.
In the interim, consumers want to benefit from affordable prices, another essential part of energy security. Leaders will continue debating while homeowners keep looking for the best electricity prices. Everyone wants to win their fight.
What is inarguable is the impact of energy on national security and foreign policy. It’s an ever-changing situation whose outcome continues to unfold.
Brought to you by amigoenergy
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