Foreign Policy Blogs

Energy

The New Scramble

If natural gas is so cheap right now, limping along between $2.50 and $5.50 per thousand cubic feet, why did Exxon pay the equivalent of $41 billion for natural gas giant XTO Energy? There is a global glut of natural gas, which won’t be disappearing any time soon. I can think of a couple reasons. […]

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Copenhagen Should Not Surprise

Everyone seems shocked and discouraged by the outcome in Copenhagen. They shouldn’t be. We must control emissions. So why wasn’t there a deal that made everyone happy? Because that’s the nature of multilateral negotiations, with scores of parties with scores of interests. They are always, always like this, as anyone who has studied them knows: […]

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The Year in Review for Energy and Natural Resources

Overview 2009 was all about China. Early in the year, when energy prices crashed due to disappearing demand, oil sank to slightly more than $30 barrel from its mid-2008 high of $147 and natural gas from $14 to around $3 per thousand cubic feet. China, flush with cash, for all practical purposes stabilized the market […]

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A Crash Course in Drilling

Most of us stumble through life never knowing how oil or gas or mining works. That’s fine — right up till we’re facing drilling or mining in our own backyard, or we want to take a stand on it. There’s a lot of fear about the process, which is completely justified — a lot can […]

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Socialism and Energy

Socialism and energy have a peculiar relationship to each other.  In most countries, no matter who owns the surface land, the subsurface rights to the oil, gas, or (sometimes) minerals, belongs to the national government, and, in theory, the people of the country. The idea did not start with the 20th century: kings and rulers […]

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Congo and Guinea — Little Big Men

Last spring, I attended an event about the new positive resource contracts of Liberia, held at Revenue Watch, an international NGO which seeks transparency in the finances of governments with natural resources. During the Q & A, a man got up to congratulate a Liberian official there, and to pray that in his own country, […]

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Will Corruption Undermine Democracy?

Can democracy survive 21st century capitalism? In October, the courts of France dismissed a suit by Transparency International (and other plaintiffs) that sought to investigate how three African dictators in Francophone Africa came to possess hundreds of millions of dollars even though the people of  their countries were amongst the poorest in the world. The […]

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Chavez and the Jews

At a party last year, an acquaintance asked me why Hugo Chavez, the President of Venezuela, was so anti-Israel. How were Israel and Jews a threat to him? Since Chavez has been president, anti-Semitic behavior in Venezuela (not known as a hotbed of anti-Semitism) has increased noticeably with attacks on synagogues and against the tiny […]

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Dubai — Oil by Proximity

The banks thst lent about $40 billion to the state-owned corporation Dubai World must have figured, “Okay Dubai doesn’t have oil, but it’s part of a larger oil country (United Arab Emirates), and it’s in an oil region, and so they’re good for the money.” Apparently, no one thought that an enterprise based on ridiculously over-priced real […]

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Energy Predictions

The International Energy Agency is out with its 2009 World Energy Outlook. Some of the revelations presented at the Council on Foreign Relations in New York on Monday were hardly startling: energy demand and investment down due to global recession, but demand expected to return and grow, China using more energy, etc. But a couple […]

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How To Challenge a Gas or Oil Lease

Last year, Tim DeChristopher, a student in Utah, bid $1.8 million he did not have in a federal oil lease auction. He won the leases. He stated he did it to protect the environment and to prevent further global warming, arguing that the danger from this drilling was too great and immediate to try to […]

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Electricity and The Future of War

Perhaps it is a complete coincidence that Brazil experienced a massive blackout affecting 60 million people only days after last week’s 60 Minutes showed a segment on cyber attacks on infrastructure including banks, internal governmental computer systems and power grids. In it, they mentioned a previously successful attack on a major electric power grid, which sources […]

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Ecuador and Chevron — Another Round

Last week, it was revealed that the supposed informant in the bribery case against the Ecuadorean officials deciding the $27 billion pollution case is a convicted felon. (Conspiring to traffic 275,000 pounds of marijuana, sic-ing his pit bull on a woman.) It doesn’t necessarily mean that he’s lying about the bribery charge — just that […]

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Money: The Morning After

For at least three decades now, personal wealth has been a political asset. In both the industrialized and developing worlds, in the words of Deng Xiaoping of China, “to get rich is glorious.” Money was access to political power, political power (especially in the developing world) access to money. I remember about four years ago, […]

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The Aesthetics of Energy

In the past couple days, the New York Times has published two stories about new energy. In one about new controversial gas drilling in Colorado, The Times is pretty clearly against drilling. There is a risk of pollution (there always is an environmental cost in all energy, including green energy). But what upsets The Times […]

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