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Energy Challenges and Dilemmas

Political, economic and technological problems of energy

  • 3 things to know
  • Component 3 Section B

Overview

Why transit countries create political risk, political objection to depending on a single supplier and why energy prices are so volatile.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Numbers

Why are oil prices so volatile, and what does a price fall do to a producer state?

Key term

Why is energy a political as well as an economic issue?

Numbers

Describe the effect of the 2022 invasion of Ukraine on European energy.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Why is energy a political as well as an economic issue?

    Model answer

    Importing countries depend on suppliers whose interests may differ sharply from their own. Supply can be withheld, taxed or priced as an instrument of foreign policy.

  2. 2

    Describe the effect of the 2022 invasion of Ukraine on European energy.

    Model answer

    Russia supplied about 40% of European Union gas imports in 2021, a share that fell steeply after the invasion. European prices spiked and governments raced to find alternative suppliers.

  3. 3

    What happened to the Nord Stream pipelines in 2022?

    Model answer

    Explosions in September 2022 ruptured both Nord Stream pipelines beneath the Baltic Sea. Russian pipeline gas to Germany by that route ended.

  4. 4

    Explain why transit countries create political risk.

    Model answer

    A pipeline crossing a third country can be interrupted by a dispute with that state. Ukraine and Belarus have both been at the centre of such disputes over Russian gas.

  5. 5

    Give one example of energy resources contributing to a territorial dispute.

    Model answer

    Oil and gas beneath the South China Sea underlie competing claims by several states. Eastern Mediterranean gas fields have similarly strained relations between neighbours.

  6. 6

    What is the political objection to depending on a single supplier?

    Model answer

    A single supplier can raise prices or cut volumes with little immediate alternative available. Diversifying routes, sources and fuels is the standard response.

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