The international community is facing the most difficult energy market it has seen in the past two decades. Oil prices have experienced record swings, oil capacity surpluses have disappeared across the operational chain, and significant gains in demand are being driven by the expanding economies of the developing world. In the short term, security of existing supplies remains a key challenge to global energy markets.
The Baker Institute conference "The Global Energy Market: Comprehensive Strategies to Meet Geopolitical and Financial Risks" brought together senior policymakers, economists, academic specialists and industry professionals to discuss the geopolitical risks currently facing international energy markets and the global financial system. At the conference, the Baker Institute also released a new energy study by the same title (as Baker Institute Policy Report 37). The study investigates the consequences that current geopolitical risks could pose to energy security, pricing and supply, as well as to the transparent and smooth operation of the global market for oil and natural gas trade and investment. By analyzing these key geopolitical threats in depth, the study identifies a series of policy frameworks that can be used to fortify the current market system and ensure that it can respond flexibly to the array of threats that might be encountered in the coming years. The study also examines the impact of emerging climate policy on future U.S. foreign and national energy policy.