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.

The violent struggle between rival Mexican drug cartels and other criminal groups has left tens of thousands dead and towns across Mexico paralyzed with fear. With overwhelmed police forces relatively powerless to control drug-related murders and kidnappings, a growing number of vigilante organizations, or self-defense groups, aim to restore order — but now even they are fighting, and killing, among themselves.

Mexico’s 2013–2014 energy reform promises to bring the country’s economic drivers and regulatory institutions in line with the global practices of free market democracies. If successful, this development would be a 180-degree turn. The accomplishment of such realignment is hardly assured, however.

Information technology policy fellow Chris Bronk writes that cybersecurity threats to the U.S. energy industry and infrastructure are rising and require increased preparedness by the U.S. Army and Department of Defense.

A policy report by Aynne Kokas, Baker Institute fellow in Chinese media, that recommends steps to further open media markets in China.

A paper that briefly examines the current situation and outlook for
 shale gas in China, and explores existing and potential 
avenues for international cooperation. Published by the International Shale Gas and Oil Journal Subscription required.

Energy experts from government, industry and academia investigate influences on oil and gas investments, as well as future directions for global commodity pricing.

Under this study, the Baker Institute will embark on a comprehensive study on the interaction of the oil investment cycle and the general business cycle, including consideration of how the global economy and patterns of industry capital investment are influenced by oil price shocks.

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Executive Summary

Key Findings

• Resolution…