Friday, November 21, 2014

An Analysis On The Geopolitical Impact Of Declining Oil Prices

Cheap-Oil Era Tilts Geopolitical Power to U.S. -- Bloomberg

A new age of abundant and cheap energy supplies is redrawing the world’s geopolitical landscape, weakening and potentially threatening the legitimacy of some governments while enhancing the power of others.

Some changes already are evident. Surging U.S. oil production enabled America and its allies to impose tough sanctions on Iran without having to worry much about the loss of imports from the Middle Eastern nation. Russia, meanwhile, faces what President Vladimir Putin called a possibly “catastrophic” slump in prices for its oil as its economy is battered by U.S. and European sanctions over its role in Ukraine.

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My Comment: If we are entering a four or five-year cycle with oil prices in a general range of $65 to $80 a barrel .... the impact on countries like Venezuela, Iran, Nigeria, and Russia will be profound and negative. For a country like China .... totally dependent on oil imports .... the benefits will be enormous.

1 comment:

James said...

http://oilprice.com/Energy/Oil-Prices/State-Budgets-Reeling-from-Low-Oil-Prices.html

http://oilprice.com/Energy/Oil-Prices/Russia-Can-Survive-An-Oil-Price-War.html