Helen Thompson: "The Complex History of Energy & Geopolitics”
Nov 15, 2023
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Political economist Helen Thompson and Nate Hagens discuss the complex history of energy and geopolitics, exploring topics such as the geopolitical implications of energy resources, Russia's invasion of Ukraine, shifting relationships with Saudi Arabia, and the potential consequences of Israel's eviction of Palestinian populations. They also touch on the role of energy in the Israeli-Palestinian conflict and the transition to green energy aspirations.
The access to abundant domestic coal fueled the rise of Britain and Germany as key powers in Europe, highlighting the importance of energy in shaping geopolitical dynamics.
The control and distribution of oil resources played a significant role in the rise and fall of global powers throughout history, evident in Nazi Germany's strategy during World War II.
There is a revival of energy awareness in political economy circles, recognizing the integral role energy plays in shaping global politics and economics, although challenges remain in fully incorporating it into political science frameworks.
The transition to renewable energy sources and decarbonization will bring significant changes to the geopolitics of energy, including challenges related to resource access and international cooperation on energy transitions.
Deep dives
The history of energy and its impact on global powers
The rise of Britain and Germany as key powers in Europe was fueled by their access to abundant domestic coal, which allowed them to industrialize before other countries. The importance of energy, particularly oil, in shaping geopolitical dynamics is evident in the actions of Nazi Germany during World War II, where access to oil resources was a crucial factor in their conquest strategy. The control and distribution of oil resources played a significant role in the rise and fall of global powers throughout history.
The energy blind spots in political science and political economy
Political science and political economy have often overlooked the importance of energy in their analyses. While there was some awareness of the economic and geopolitical significance of energy in the past, this awareness diminished over time. However, there seems to be a recent revival in energy awareness within political economy circles, as scholars recognize the integral role energy plays in shaping global politics and economics. Political science, on the other hand, still faces challenges in fully incorporating energy-related dynamics into its frameworks.
The implications of energy transitions on geopolitics
As the world transitions to renewable energy sources and decarbonization, the geopolitics of energy are likely to undergo significant changes. While the shift to renewable energy may alleviate some geopolitical constraints associated with hydrocarbons, such as oil, it does not eliminate all geopolitical challenges. The competition for crucial metals and materials required for renewable technologies may engender new geopolitical complexities, as countries seek to secure access to these resources. Western nations, particularly European countries, face challenges in forging agreements for metals and raw materials in regions with historical memories of resource extraction by European powers.
The future of global cooperation and the challenges ahead
The path to global cooperation on energy transitions and resource management is filled with challenges. European countries, facing resource constraints and domestic resistance to mining, may struggle to secure access to metals needed for the energy transition. Furthermore, conditioning investments in metal supply chains on conditional demands, such as avoiding new pipeline construction or coal-fired power plants, may complicate international negotiations. Geopolitical tensions, such as Russia's invasion of Ukraine, have also exposed the challenges of aligning energy and climate policies, as countries resort to coal-fired power during emergencies. Building trust and finding common ground on energy and resource governance will be crucial in navigating the complex geopolitical landscape.
The Geopolitical Importance of the Dollar and the Petrodollar System
The podcast discusses the geopolitical significance of the dollar and the petrodollar system. It highlights how the United States was able to maintain its dominance by having the world economy run through dollar debt. The speaker emphasizes that while there is a desire among countries like China to move away from the dollar as the world's reserve currency, the actual ability to do so is challenging due to the global economy's reliance on dollar credit. Despite the incentives to shift away from the petrodollar system, the dollar remains a more attractive option compared to alternatives.
The Energy Politics between Russia, Ukraine, and Europe
The podcast explores the energy politics between Russia, Ukraine, and Europe. It highlights how Russia's invasion of Ukraine had profound energy price and security implications for Europe and the rest of the world. The speaker explains that Russia has been strategically working to change energy dynamics in Europe by building pipelines and weakening Ukraine's position in Russia's transit system. However, when it comes to the events of February 2022, the energy motive is less clear, and the crisis is seen as more of a rejection of Ukraine as an independent nation state and concerns about NATO power. The podcast also discusses Germany's dependence on Russian oil and natural gas and the challenges it faces in shifting to other energy sources.
Energy Insecurity, Geopolitics, and the Transition to Green Energy
The podcast explores the relationship between energy insecurity, geopolitics, and the transition to green energy. It emphasizes how energy insecurity driven by geopolitics has increased the desire to accelerate the energy transition. However, the speaker points out that the challenges facing the energy transition have also intensified due to increased pressures on energy inflation. The podcast discusses the potential future of reduced energy consumption and the need for political leaders to understand the complexities of the energy system and the interactions between different energy sources. It suggests that resilience and a deep understanding of the economic and geopolitical contingencies of our material lives are essential for navigating the changes ahead.
On this episode, political economist Helen Thompson and Nate discuss how energy and geopolitics have interconnected over the past century, building to the entangled political relationships we see around us today. The dynamics of power on a global scale are complex - stemming from access to energy, financial control, military strength, credibility/trust, and much more - yet we can understand these a bit better by learning the history that shaped them. How have geologic provinces of energy dense carbon created inherent hot spots on the geopolitical playing field? How has the global monetary system and debt evolved to strengthen the power of a select few countries and how difficult is it to break from this system? Do our leaders have the capability/knowledge to connect energy and geopolitical policy in order to guide us through a future of declining energy availability?
About Helen Thomspon:
Helen Thompson is Professor of Political Economy at Cambridge since 1994. Her current research concentrates on the political economy of energy and the long history of the democratic, economic, and geopolitical disruptions of the twenty-first century. She is a regular panelist on Talking Politics and a columnist for the New Statesman. She is a co-presenter of UnHerd's podcast, These Times and recently published Disorder: Hard Times in the 21st Century.
For Show Notes and More visit: https://www.thegreatsimplification.com/episode/98-helen-thompson
