The IUP Journal of International Relations
Global Energy Market in the Changing World Order

Article Details
Pub. Date : April, 2023
Product Name : The IUP Journal of International Relations
Product Type : Article
Product Code : IJIR030423
Author Name : Mumtaz Ahmad Shah
Availability : YES
Subject/Domain : Arts & Humanities
Download Format : PDF Format
No. of Pages : 13



The world order is in flux and so is the geopolitics of the global energy market. Traditionally, the global energy market and the Middle East politics were shaped by the US military and petro-dollar nexus. However, the world has entered the post- America era, with China and Russia emerging as the new global powers in the Middle East and major players in global energy market. In this backdrop, the study explores the changing pattern of global politics and its implications for the global crude oil and gas market.


Crude oil has been one of the few natural resources which influence global geopolitics. This is why oil is called 'Black Gold'. There is no better way to understand the geopolitics of oil than the Middle East. One of the goals of European colonization of the Middle East and invasions was to secure access to the Gulf oil reserves. The 'seven sisters' became the buzzword to refer to western oil companies' dominance over the global energy market.1 The major energy market outside the Western sphere of influence was former Soviet Union. Energy resources remained the backbone of the Soviet economy in the 1970s. Moscow's total energy-production grew from 10.25 million barrels per day (mbd) in 1960 to 27.58 million barrels in 1980.2

Back then, the global West had military presence in the Gulf region and had technology to extract and market the crude oil. So the Gulf's ruling pro-West monarchies partnered with the Western companies. Prior to oil income, the Middle East exhibited the lowest levels of socioeconomic development in the world. The extraction of hydrocarbon resources gave the Gulf region in particular a means to economic growth. The flip side of the oil revenue was that states achieved autonomy from social demands and brought loyalty of people by accommodating them in the public sector and providing lofty welfare services.3 Consequently, the Middle East