The term “energy security” evokes a variety of sentiments. The commonly accepted definition relates to the fundamental economic principle of sufficient supply to meet demand within a geographic space, at an acceptable cost. When applied across states and great distances, between producers and consumers, this equation becomes quite complicated.
Energy security has become infused with classic perceptions of national sovereignty, borders and economic development. It has also come to connote a sense of entitlement on the part of industrialized economies, giving rise to an “us versus them” scenario. Using the word “security” polarizes the debate, putting net exporters on one side and net importers on the other, and creates a system of conflict that may not otherwise exist.
In practice, transnational corporations control the extraction, refining, transportation and delivery of energy, and largely drive the energy sector. The concentration of power in private hands has thus handcuffed policy makers in many ways.
Energy security is seen by some as a purely strategic objective, requiring the militarization of oil fields and shipping routes; others approach the term from a political-economic perspective as a statement on the inequality in the world economy, favouring the promulgation of affluence in industrialized economies.
The rise of new global powers – China and India in particular – has added a level of complexity in how energy security is perceived from the perspective of the dominant powers. As reported in the 2007 World Energy Outlook, these countries are experiencing staggering rates of economic growth and are demanding an increased share of world energy resources. As traditional resources become more scarce and alternatives are introduced, the prevailing energy status quo will be challenged by the rise of the emerging economies (or BRICSAM). Securing sufficient supply to meet demand in these growing economies as well as the established industrialized economies will force competition or collaboration for more expensive supplies.
The preferred yet challenging path is that of collaboration, and submission to greater regulation in the global energy sector. Experts and scholars warn of looming energy wars if transition cannot be made to a low-carbon society. The likelihood of effective and efficient implementation of new technologies to lessen reliance on remaining fossil feuls – much of which controlled by rogue regimes – within the next couple decades is minute.
And yet, institutionally, this competition is promoted by a competing system of allegiances; OPEC and IEA. Without transparent, multistakeholder and universal governance mechanisms in global energy – every step from extraction to end user – this system will continue. A broader conceptual understanding of “energy security” is needed to inform global policy-making; one that encompasses poverty and development, science and technology, law and order, labour and environment as much as it does business and profit, trade and borders.
Tags: Energy, energy security, global governance, Oil
