I've just published a summary for The New Map: Energy, Climate, and the Clash of Nations by Daniel Yergin. The book is a bit of a denser read, explaining how changes in energy markets are reshaping geopolitics, but I found it highly educational.

As usual, the key takeaways are below, and you can find the full summary by clicking the link above.

KEY TAKEAWAYS

• Energy is a major driver of geopolitics.
• The shale revolution beginning in the 2010s has made the US into an energy superpower.
  • Shale production combines hydraulic fracturing (“fracking”) with horizontal drilling to extract oil and gas from previously inaccessible rock formations.
  • America’s new energy abundance has reduced its strategic vulnerability and dependence on Middle Eastern oil, increased America’s influence in Asia, and reduced Russia’s leverage over Europe.
• Russia uses energy to project geopolitical power:
  • Oil and gas exports fund nearly half of Russia’s government budget
  • Much of Russia’s gas to Europe flows through pipelines in Ukraine, which is a source of conflict between the two countries.
  • Russia has tried to bypass Ukraine by using alternative pipelines, but the US blocked one of these (Nord Stream 2) mere weeks from completion.
  • Russia’s new energy alliance with China is part of its “pivot to the east”, which reduces its reliance on the European market.
• China’s heavy reliance on energy imports poses a key strategic vulnerability:
  • China imports 75% of its oil, mostly via shipping lanes with vulnerable chokepoints like the Malacca Strait, which is part of why China wants control over the South China Sea.
  • The Belt and Road Initiative is also driven by energy security, with many investments in energy projects and pipelines.
  • The desire for energy security has also encouraged China to invest in renewables, especially solar panels and lithium batteries.
• The Middle East faces challenges in both the green energy transition and America’s shift away from the region:
  • Countries like Saudi Arabia, Iran, and Iraq are heavily dependent on oil revenues. Saudi Arabia has tried to diversify away from oil, such as by publicly listing part of Saudi Aramco.
  • When the shale revolution caused prices to fall in 2014, the OPEC countries joined with Russia to cooperate on boosting prices ("OPEC-Plus").
  • The discovery of major gas fields in the Eastern Mediterranean in 2009 has significantly increased Israel’s energy security.
• The world is now transitioning to clean energy but this will not happen overnight:
  • Global energy consumption is still growing as emerging economies continue to develop. At a global level, the energy transition so far has been an energy “addition”—renewables are growing on top of traditional sources of energy, rather than replacing them.
  • 3 major trends in transport could converge to dramatically reduce oil demand: electric vehicles, autonomous vehicles, and ride-hailing services. But challenges remain, and it takes a long time for fleets to turn over.
  • Solar and wind are already cost-effective, but they suffer from intermittency problems so need to be supplemented. Further technological breakthroughs in carbon capture, energy storage, and hydrogen will likely be needed to achieve ambitious net zero targets

You can find the full detailed summary on the website. If you found this summary useful, consider forwarding to a friend you think might enjoy it.

Thanks for subscribing! Until next time,

​To Summarise​