The Situation Room: The Geopolitical Impact on Energy

The Situation Room: The Geopolitical Impact on Energy

by | published July 15th, 2019

Well, it’s been interesting in the energy world recently. And the geopolitical situation is even more interesting.

There are a number of things pertaining to the geopolitical climate these days – in particular, the Persian Gulf – that will have me occupied this week. As always, however, there’s much more than just straight geopolitics to keep me busy.

So, here are the top two situations I’ll be keeping an eye on this week:

1. Brexit’s Impact on Energy

Brexit is once again dominating the news circuit, and it’s managing to complicate the global energy outlook.

So, I will be determining whether the “Brexit gas loop” will worsen the energy outlook in the UK. This “loop” involves natural gas moved to Europe from British-controlled North Sea deposits, and then returned to the UK at a higher price following declines in the value of pound sterling.

The “loop” is again forming as another no-deal Brexit deadline approaches on October 31.

2. Trade War Tensions

China is one of the world’s largest consumers of liquefied natural gas (LNG), and its ongoing move from its reliance on coal to other, cleaner resources virtually guarantees a spike in its LNG needs.

However, the U.S. is one of the world’s largest LNG exporters, and the ongoing trade war means that there will be some backlash on this otherwise equitable relationship. In any other geopolitical climate, China would be getting much of its LNG from the U.S.

But with today’s tariff war, I will be analyzing the impact of this U.S.-China trade battle on U.S. liquefied natural gas exports to Asia.

It should prove to be enlightening.

The Line between Economic and Military Threats Is Thin Indeed

Now, China’s trade beef with the U.S. is only the tip of the iceberg.

They can threaten us all they like with more tariffs, more trade difficulties, and more financial trouble, but the U.S. is more than up to the task there.

It’s the military threats that have U.S. policy makers concerned.

And make no mistake, there are indeed military threats coming at the U.S. direct from China – it simply doesn’t get quite the same amount of press these days.

But it’s certainly something I believe you need to know about.

Because China has every intention to use its military might against the U.S. should they feel we get out of line even a little bit – and they’ve been testing their powerful “Assassin’s Mace” missiles to prove it.

Which is why the U.S. has been getting its act together to rebut the Chinese in this area; the Pentagon has been virtually throwing funding at this defense contractor to defensively counteract – and offensively attack – this Chinese threat.

This is not something you want to be ignorant about. Just click here to learn more about this dangerous situation.



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