The changing geopolitics of energy

The paper discusses the changes in the global energy balance and the resulting geopolitics, which have in the recent years emerged as a result of the interplay of factors such as the rapidly increasing world’s energy consumption and the shift of the source of consumption eastwards to China and India. The apparent shortage of oil is exemplified by the “peak oil” theory, signalling a global struggle for oil and the need for new oil production, despite the apparent investor’s insecurity to commit under the current geopolitical and economic conditions. Against the backdrop of these disconcerting factors, the authors considered the emergence of shale gas, as a new and abundant energy source that may redirect the energy geopolitics towards more comfortable outcomes.