Energy Nationalism

A world thirsting for imported oil and gas is seeking new supplies in Central Asia and Africa, where many nations have nationalized their energy resources. In a dramatic reversal from 30 years ago, government-owned or controlled petroleum companies today control 77 percent of the world's 1.1 trillion barrels of oil reserves. While the emergence of these rising petrostates has helped diversify the world's energy sources, many are considered oil “hot spots” — vulnerable to disruption from international terrorists or domestic dissidents. In addition, many of the petrostates are blending politics and energy into a new energy nationalism, rewriting the rules of the world's energy markets and restricting international oil corporations' operations. Russia's confrontational energy policies alarm its neighbors, and critics say a booming China is combing the world for access to oil and gas resources without concern for suppliers' corruption or human rights violations. Many also worry that growing competition for dwindling oil supplies will lead to greater risks of international conflict.