Energy and its worldwide significance
- The impact on growth in the euro area
- An economic slowdown
- Possible solutions
- A decline in interest rates
- A redefinition of the role of the ECB
Energy is the most vital subject that has been under fierce competition even before the concept of state existed. During the oil shocks in the 1970s, the conflict in Kashmir and the tensions between Russia and Ukraine, they show us how energy is a key factor in the development of a country. It is stated in Greek etymology as, 'which gives the power by multiplying the force'.
The question for energy resources is quickly becoming a geo-political issue combining economic and military power of States. Today, if Iran shows the firm that it will develop civilian nuclear power; the resulting tensions will be increased. Many inequalities persist in the net consumption of the energy as its reserves are unevenly distributed on earth, representing a dependence of energy importing countries. It should then ask to what extent the energy factor influences international relationship. What are the different international actions aroused by the control of energy resources?
Source of power and ability to produce energy can be considered as a means of pressure or as a weapon. In conflicts, belligerents often seek to cut down the enemy of its energy supply. A major player, governments have long understood that cheap energy supply was a sine qua non of economic and industrial development of a State. All sources of energy are hydrocarbons that have undoubtedly attracted the conflicts.
Energy is a means of pressure that can influence international relations. In 1973, when the first oil shock happened, OPEC (Organization of Petroleum Exporting Countries founded in 1960) was aware that the weapon appeared to be oil. Therefore, OPEC is a major player in international relations while previously, it was of limited importance. In 2009, the only oil trade had an exchange of about $6 billion per day, which meant that most symbolic day oil trading could produce the equivalent of the GDP of Gabon.
Tags: Energy, Russia and Ukraine, military power, international actions, and energy supply, OPEC.