The Global Energy Crisis From The Iran War

 

The Iran War has induced an energy crisis. Gas prices are going up seeing as Iran is an oil producing country. Iran had suffered under the economic warfare of sanctions. Now the Islamic Republic is closing the Strait of Hormuz. The assassination of the Supreme Leader makes  a peaceful resolution impossible. Europe does not have enough diversification to keep gas and oil prices low. Combined with the conflict in Ukraine, the EU will suffer another energy shock. The situation also becomes more precarious with Gulf monarchies are being attacked. Those countries that have US bases are being hit with missiles and drones. Qatar and Saudi Arabia might not be able to produce as much needed for the global market. The US struggles with inflation and rising prices. Some speculate that the war on Venezuela was a means to obtain an extra reserve of oil, so when Iran was invaded it would not have an economic effect. Gas prices and higher energy prices are going to effect the midterm election in the United States. If Israel and the US continue to seek regime change, an energy crisis could reach the condition of the 1970s. At the moment oil prices have gone up 10%. Kuwait and Iraq are having difficulty keeping their oil terminals operational. Air strikes and  drones make it unsafe to work. Asia is facing the strain of the war. Vietnam and Indonesia are reliant on imported fuel. Other South and Southeast Asian nations are experiencing an energy crisis. Access to liquified natural gas is also hindered with the Strait of Hormuz being closed. Business might not be able to survive and workers employment could be terminated. A energy crisis could push the world into economic decline. Even if there was a ceasefire or peace settlement, energy prices would not immediately lower.  

Tuvalu Under Threat From Climate Change

 

Climate change is becoming a security risk for nations of Oceania and the Pacific Ocean region. Tuvalu's concern relates to the increase in water levels. Tuvalu seeing the increase water levels of the Pacific Ocean means certain islands could go under. Flooding become a danger to people, property, and the economic conditions of the country. Realizing climate change is not slowing down, one solution involved an agreement with Australia. A climate change visa has been proposed. This allows Tuvaluans  to relocate to Australia due to environmental challenges. The climate change visa is not a permanent method to address climate induced disasters. Residence of Tuvalu might not want to move to another country. Australia cannot be expected to take all people from various Pacific Ocean states. Environmental protection needs to be a priority for governments across the world. The dependence on fossil fuel undermines efforts to address climate concerns. Rising sea levels are also going to effect Australia. Those living on the coast or close by the ocean makes it unsafe for residence. The climate change related visa is the first of its kind. Some Tuvaluans  applied for the new visa. Adjusting to a new country can be difficult. Australians might not want to see more  immigration . Tuvalu's population is smaller than Australia's. According to Australia's Department of Foreign Affairs and Trade Tuvalu's population is 11,204 people. Tuvalu gained independence in 1978 and since has strived for economic development. Tuvalu has tourism potential, yet climate change remains a hinderance. Tuvalu and other members of the Pacific Islands Forum must develop new innovations to combat the effects of climate change.      

Chad Has Nationalized All Assets of Exxon Mobil

 

Chad has nationalized Exxon Mobil assets. The oil company divested in Chad around December of 2022. The current policy also applies to exploration and production authorizations. Hydrocarbon permits will are also subject to nationalization. The change in policy came from the reaction to the Savannah Energy deal. Chad felt Exxon Mobil was not upholding  previous obligations under their agreements. Courts may get involved to prevent Savannah Energy from making purchases of assets in Chad. This has also effected Cameroon, which has worked with Chad in the energy sector. A Chad-Cameroon pipeline has been planned for construction. The Doba oil project was designed to make Chad produce larger amounts of oil. It contains seven oil fields and produces 28,000 barrel per day. The government wants a better deal, which benefits the economy. Savannah Energy stated it will take the assets under the Exxon Agreement. Savannah Energy is a British company active in Niger and Nigeria. The fear from the company is that other African nations will nationalize assets. According to their statement it intends to use the ICC to pursue legal rights. If Chad can successfully fight the legal claims, it may get back control of its own economic policy. Oil can generate much wealth. If  the wealth is not applied to development or increasing the standard of living it means nothing. Exploitation by foreign corporations of Africa's natural resources remains common. Nationalization might be a method of preventing such an occurrence.  

President Jose Eduardo Dos Santos Blames Economic Crisis on Sonangol Oil Firm (2016)

 

At one time Angola was a Marxist-Leninist political and economic system. After the fall of the Soviet Union, Angola allowed for a market economy to emerge. The new policy did not bring about prosperity, when President Jose Eduardo  dos Santos encouraged foreign investment. Angola became one of Africa's largest oil producers, but most Angolans did not see improvement related to income or an increase in the standard of living. The economy fell into a worse condition by 2016. He stated that Angola was broke and blamed it on mismanagement by the state oil firm Sonangol. It was apparent by this point a level of corruption was responsible for stolen wealth or missing funds. The appointment of Isabel dos Santos as chairwoman was designed to cover-up criminal acts and ensure that the  Santos family could continue to enrich itself. During that year it was a struggle to generate funds for essential imports. Jose Eduardo Dos Santos left a legacy of kleptocratic government, failed free market policies,  and nepotism.