The major political power of Oil is declining as governments take over green power

The handshake between former UK Prime Minister Tony Blair and Muammer Gaddafi in the desert in 2007 was not the only time the Libyan leader strengthened ties with the former enemy. It was also a clear indication of the role that “Big Fat” played in the outward appearance.

BP signed a research agreement on the same trip, which called on the UK government to re-establish relations with a dictator in North Africa while opening up access to more hydrocarbons in Europe.

The struggle for archeology has fostered geopolitics for many years, from creating conflicts and building ties between the West and the Middle East to today’s debate over the Nordstream 2 pipeline from Russia to western Europe.

But now the relationship between Western companies and their governments is changing dramatically as governments volunteer to use green oil – which happened in April when US President Joe Biden summoned foreign powers. season meeting placing countries to reduce emissions.

“There has been a perception that political power is affected by the availability of oil,” said Greg Priddy, a former electric researcher at the US government. “Even at a time when Obama’s superiors in the US were of the opinion that major exporters were important on the agenda. But everything is changing.”

The move was moved home last month when a International Energy Agency released a report stating that if the world were to reduce greenhouse gas emissions to zero by 2050 – a key factor in achieving the Paris climate’s goal of reducing global warming to 1.5C more than before the epidemic – exploration for new oil fields should stop.

Even before that report, oil companies had cut costs on dangerous cross-border surveys, fearing that oil prices could increase over the next decade.

But in countries where oil regulators are likely to play a more important role as ambassadors in improving relations with foreign leaders, their power is diminished. Critics once complained about the “changing door” between governments and oil companies, as officials began working in companies after leaving public life. But governments no longer want us to look like we are helping oil companies in foreign countries while forcing domestic labor according to what can be produced, experts say.

In the US – oil producer and retailer worldwide – Biden’s management reunited with the Paris agreement, removed the Keystone XL oil pipeline and repaired it money that has never happened before pure power. Globally, the White House is forcing other countries to cut funding for coal mining operations abroad – last month The G7 countries have promised doing so later this year – as well as leading a market meeting.

While all electrical problems can be solved by decarbonising, energy changes will no doubt make new ones

“With the change in management in Washington, I think we have probably seen the darkness of the love affair that the US government has with the oil industry,” said Helima Croft, a former CIA analyst at RBC Capital Markets.

“Sustainability of the economy seems to be an important issue in Washington, but it is not really helpful in the meantime for climate change and climate change.”

Yet to try to make global change augmented by difficult calculations, observers warn.

The big oil companies say that while they enjoy the aid, they did not rely on their governments to help them get rich, and they are accepted in many countries.

But market experts say politicians are at risk of losing international power by weakening their alliances with oil and gas companies and driving developing countries away from oil. The US, for example, must use more of its hydrocarbon weapons to help agents who can rely on weapons from countries such as Russia, he says.

“There is a political rivalry with China right now that seeks to take over the world economy,” said a former U.S. security adviser who now works for a major US oil company and asked for anonymity. “The United States has its advantages and disadvantages of LNG but it does not seem to want to use them.”

Jason Bordoff, Barack Obama’s former chief of staff and director of the Center for Global Energy Policy at Columbia University, said there was still a shortage of oil in the world.

“The IEA roadmap was very clear showing what needed to change, and surprisingly said nothing was changing – oil is still needed,” Bordoff said.

The role of natural resources in external perceptions will change with energy change, he said. Essential salts for batteries or the possibility of other fuels such as hydrogen means the relationship between major manufacturers and governments can change rather than just be destroyed.

“Even if all the problems after the world’s energy have been solved by decarbonising, energy change will undoubtedly make new ones,” he said.

Ultimately political support will not protect oil companies from collapse. Blair may have opened the way for BP but his investment in Libya has not been fruitful, as a result of the 2011 civil war and the misunderstanding that thwarted his plans. In 2018 the company sold half of its revenue in an investigation by Eni of Italy.

“There has been an interesting relationship between the government and the big oil companies but I am still not sure how the power went,” said Professor Paul Stevens, a well-known colleague at Chatham House.

“But with oil on the trip. . . these companies are fighting back and there is not much the government can do for them. ”

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