Since the end of the Cold War, military capacities as a means of geopolitical power have been considered to become less important in favour of economic issues. But even though the latter do not have the same obvious striking force as gun power, certain economic aspects can also represent a fundamental element of national security.
For the European Union, one of ‘well identified areas’ in order to protect the economy is energy supply, respectively energy security. Since the number of countries that deliver most of the oil and gas to the EU is very small and some of them are involved in geopolitical quarrels, the EU seeks to diversify its energy supplier structure. One opportunity to do so might be the Transatlantic Trade and Investment Partnership (TTIP).
In this paper, I argue that TTIP is supposed to be, among others, a geoecomomic tool of the EU in order to diversify its energy suppliers and to reach more energy security, but this will only work on a medium to long term perspective and to a limited extent.
Table of Contents
1. Introduction – ‘Geoeconomics’, energy security and TTIP
2. Counteracting the EU’s energy supply dependencies – TTIP as a ‘geoeconomic’ tool?
3. Possibilities and limits of US energy exports to the EU
4. Conclusion – US energy exports: untapped potential to diversify the EU’s supply but not a secured and definitive solution
Research Objectives and Key Topics
This paper examines the geoeconomic dimensions of the Transatlantic Trade and Investment Partnership (TTIP) and assesses to what extent closer EU-US energy ties can contribute to the diversification of the EU's energy supply and enhance its energy security amidst geopolitical tensions with traditional suppliers like Russia.
- The theoretical application of 'geoeconomics' to contemporary energy security.
- The European Union's dependency on external energy sources and current supplier vulnerabilities.
- The potential for US energy exports, particularly oil and Liquified Natural Gas (LNG), to mitigate EU energy supply risks.
- Logistical, economic, and political obstacles, including climate objectives and changes in US trade policy.
Excerpt from the Book
Counteracting the EU’s energy supply dependencies – TTIP as a ‘geoeconomic’ tool?
The EU is the most significant energy importer worldwide in absolute terms, going along with an energy import rate of 53%. Especially crude oil and natural gas come from outside the EU, by far the most from Russia which is responsible for more than 30% of the crude oil and 37,5% of the natural gas imports to the EU. Other major energy suppliers for the EU are Norway, Nigeria, Algeria, Saudi-Arabia, Libya and Qatar. The EU has acknowledged this situation as problematic since a dependency on these few external actors, most of them situated in unstable regions of the world, concerning such a vital issue like energy supply makes the EU more vulnerable, both economically and politically. This is especially problematic in the case of Russia, the most important supplier.
Tensions have increased tremendously with Russia ever since the country has annexed the pen-insula of Crimea from Ukraine in 2014 and has been involved in a war in the east of the country since the same year. In addition to that, Russia has already used its strong market position as gas supplier to suspend its gas deliveries to Ukraine, thus affecting also EU member states, triggering fear among Europeans that this could happen again any time.
Looking for alternative “sources, routes and suppliers” is therefore key for the EU when it comes to the objective to diversify its external energy supply. Indeed, one alternative lies on the other side of the Atlantic, ever since the United States have become one of the largest oil and gas producers worldwide, thanks to the “shale revolution”, and have started to export its newly gained resources. Up to now, the US as an energy exporter to the EU does not play a role. The high dependency on Russia and the rapidly increased oil and gas production in the US can be seen as the main reasons why many EU deciders have declared themselves in favour of a distinguished TTIP chapter on energy. This could include, among others,
Summary of Chapters
1. Introduction – ‘Geoeconomics’, energy security and TTIP: Defines the concept of geoeconomics in the post-Cold War era and introduces the EU's reliance on energy imports as a critical security issue that TTIP seeks to address.
2. Counteracting the EU’s energy supply dependencies – TTIP as a ‘geoeconomic’ tool?: Analyzes the EU’s heavy reliance on Russia for energy and evaluates how TTIP could serve as a strategic instrument to diversify supply via US exports.
3. Possibilities and limits of US energy exports to the EU: Investigates the economic, logistical, and political challenges—including infrastructure requirements, cost-competitiveness, and environmental concerns—that limit the immediate viability of US energy exports to the EU.
4. Conclusion – US energy exports: untapped potential to diversify the EU’s supply but not a secured and definitive solution: Summarizes that while US exports provide a viable alternative, they remain a long-term solution constrained by market conditions and shifting political landscapes.
Keywords
Geoeconomics, Energy Security, TTIP, European Union, United States, Oil, Natural Gas, Shale Revolution, Diversification, Trade Agreement, Import Dependency, Russia, LNG, Energy Policy, Climate Protection
Frequently Asked Questions
What is the primary focus of this paper?
The paper evaluates the role of the Transatlantic Trade and Investment Partnership (TTIP) as a geoeconomic instrument to reduce the EU's energy dependence on a limited number of suppliers, particularly Russia.
What are the core themes explored in this work?
The core themes include the intersection of economics and geopolitics, European energy security strategy, the rise of US shale production, and the logistical and political barriers to transatlantic energy trade.
What is the central research question?
The study asks to what extent the Transatlantic Trade and Investment Partnership could contribute to a diversification of the EU's energy supply.
Which methodology is applied in this research?
The author employs a qualitative analysis of geopolitical and economic data, drawing on primary policy documents from the EU and industry reports to assess the feasibility of energy integration.
What topics are covered in the main body?
The main body covers the theoretical definition of geoeconomics, the current state of EU energy imports, the potential impact of the 'shale revolution' in the US, and the specific obstacles to exporting that energy to Europe.
Which keywords best characterize the paper?
Key terms include Geoeconomics, Energy Security, TTIP, Shale Revolution, and EU-US energy trade relations.
How significant is the role of the Russian Federation in this context?
Russia is identified as the most critical energy supplier to the EU, and its political tensions with Europe are a primary driver for the EU's search for alternative energy sources.
What are the major obstacles to US-EU energy cooperation?
The obstacles include the high costs of transporting oil and LNG over long distances, the need for further infrastructure development, political resistance in the US regarding energy self-sufficiency, and EU concerns over environmental and climate targets.
How does the author view the future of TTIP regarding energy?
The author argues that while energy exports represent an untapped potential, they are not a definitive solution and will only be feasible in a medium to long-term perspective, while also being subject to the political will of the current US administration.
- Citar trabajo
- Benedikt Weingärtner (Autor), 2017, A case of ‘Geoeconomics’ in the 21st century. To what extent could the Transatlantic Trade and Investment Partnership (TTIP) contribute to a diversification of the EU's energy supply?, Múnich, GRIN Verlag, https://www.grin.com/document/370778
