Unit 3: Resource Geopolitics and Energy Security
Resource Geopolitics and Energy Security
Energy resources are critical for national development, industrial growth, and strategic power. Geopolitics plays a key role in how countries control, trade, and secure energy supplies.
Global Energy Politics
Pipelines, Ports, and Control Zones: Nations strategically control pipelines, ports, and maritime zones to secure energy flows.
Examples
- Druzhba Pipeline (Russia → Europe): Critical for European oil and gas supply.
- Strait of Hormuz: ~20% of global oil passes through; geopolitical tensions affect global oil prices.
- Persian Gulf ports: Vital for oil exports; naval presence ensures secure shipping lanes.
Key Idea: Control over energy infrastructure gives geopolitical leverage.
Political Economy of OPEC+ and Fuel Pricing
- OPEC+ (Organization of Petroleum Exporting Countries + allies) manages oil production quotas to influence global oil supply.
- Pricing is affected by supply-demand, geopolitical tensions, and production policies.
Examples:
- Saudi Arabia and Russia coordinating oil output to stabilize or raise prices.
- Conflicts in oil-rich regions can cause price spikes affecting global economies.
Key Idea: Energy-exporting countries can use oil prices as a strategic tool.
Climate Politics and Energy Transition
- Carbon Tariffs: Taxes on high-carbon imports to encourage low-carbon production.
- Green Subsidies: Financial support for renewable energy technologies like solar, wind, and EVs.
- Energy Transition Diplomacy: Countries negotiate agreements to reduce carbon emissions and promote clean energy while balancing economic interests.
Examples:
- EU’s carbon border adjustment mechanism.
- International negotiations on energy transition in COP summits.
Energy security now includes climate-conscious policies along with traditional fossil fuel strategies.
Summary Table
| Aspect | Key Points | Example |
|---|---|---|
| Global Energy Politics | Pipelines, ports, maritime zones control energy flow | Druzhba pipeline, Strait of Hormuz |
| OPEC+ & Fuel Pricing | Coordinated output to manage prices | Saudi Arabia-Russia agreements |
| Climate Politics | Carbon tariffs, green subsidies, energy diplomacy | EU carbon border tax, COP negotiations |
Water, energy, and agricultural resources are critical for national security, economic growth, and global trade. Geopolitical competition over these resources has increased due to climate change, population growth, and global interdependence.
Competition Over Water Resources
Water is a strategic resource essential for agriculture, industry, and domestic consumption. Countries compete over rivers, lakes, and groundwater for economic and geopolitical leverage.
Key Examples:
- Indus River Basin (India-Pakistan): Water-sharing disputes influence agriculture and diplomacy.
- Nile River (Egypt-Ethiopia-Sudan): Grand Ethiopian Renaissance Dam (GERD) creates tensions over water allocation.
- Mekong River (Southeast Asia): Dams upstream affect irrigation, fishing, and livelihoods downstream.
Impact on Trade and Agriculture:
- Water scarcity limits crop production, affecting food exports and global commodity prices.
- Countries with abundant water gain agricultural trade advantages.
Competition Over Agricultural Trade Resources
- Countries compete for fertile land, high-yield crops, and food supply chains.
- Trade policies are influenced by food security concerns, export restrictions, and subsidies.
Examples:
- Russia-Ukraine Conflict: Disruption in grain exports → global wheat and corn prices surged.
- India & China: Policies on rice and wheat exports affect regional markets.
Key Idea: Water and agriculture are interconnected; control over water affects food security and trade dominance.
Resource Diplomacy
Resource diplomacy refers to using natural resources as tools for geopolitical influence. This includes energy aid, extraction deals, and infrastructure investments.
| Type | Description | Example / Latest Update |
|---|---|---|
| Energy Aid | Providing fuel or energy resources to allies | China supplying oil to Pakistan, Russia supplying gas to Europe (pre-2022, shifting post-conflict) |
| Extraction Deals | Securing rights to mine or extract resources in foreign countries | China’s lithium and cobalt mining deals in Africa; India investing in rare earth projects |
| Infrastructure Influence | Building ports, pipelines, and dams to control resource flows | China’s Belt and Road Initiative (BRI) invests in ports, rail, and energy infrastructure in Africa & Asia |
Latest Updates (2025)
- Water Conflicts: GERD negotiations continue between Ethiopia, Sudan, and Egypt; Mekong River water-sharing remains tense.
- Agricultural Trade: Global wheat prices remain volatile due to ongoing Ukraine conflict and climate-related crop failures.
- China continues to expand influence in Africa via infrastructure + resource deals.
- USA and EU promote green energy aid and technology transfer as part of climate diplomacy.
- India invests in Central Asian water-energy cooperation to secure energy and irrigation resources.
Summary Table
| Resource | Type of Competition | Geopolitical Tool | Example |
|---|---|---|---|
| Water | Control over rivers & dams | Diplomatic negotiations, treaties | Nile GERD, Indus Basin Water Treaty |
| Agriculture | Trade & food security | Export restrictions, subsidies | Russia-Ukraine grain disruption |
| Energy & Minerals | Strategic control | Aid, extraction deals, infrastructure | China-BRI, Africa mining deals, Russia gas exports |
Exam Tips
- Always link resource competition to trade impact.
- Mention real-world examples and latest developments (2025).
- Highlight interconnection between water, agriculture, and energy for comprehensive answers.
- Use tables and bullet points for clarity.