The Russian invasion of Ukraine unleashed the use of energy resources as geopolitical “weapons.” But oil and natural gas have followed markedly different paths over the past year, with unexpected results. Why? And what lessons can policymakers learn from these experiences?
With conflict on two fronts, and natural gas squarely in the crosshairs, the US LNG industry will be needed to support our allies in both Europe and Asia this winter, write the authors.
Steven R. Miles, Gabriel Collins, Anna B. MikulskaAugust 18, 2022
This paper summarizes the presentations and discussions at May 14, 2015, workshop on water-energy interdependence and related issues. The Baker Institute Center for Energy Studies (CES) and the Texas A&M University Nexus Research Group convened the event.
Fossil fuel subsidies have allowed energy exporting countries to distribute resource revenue, bolstering legitimacy for governments, many of which are not democratically elected. But subsidy benefits are dwarfed by the harmful consequences of encouraging uneconomic use of energy. Now, with consumption posing a threat to long-term exports, governments face a heightened need to raise prices that have come to be viewed as entitlements. While reforms of state benefits are notoriously politically dangerous, previous experience shows that subsidies can be rolled back without undermining government legitimacy — even in autocratic settings — given proper preparation.
