The current growth of human population has increased the need for resources. Increased human activity has in turn impacted negatively on global climate change leading to conflicts and the unending frictions among nations around the globe. The rise of China as a super power has attracted international attention owing to the fact that its growth has been steered by its energy sector. The increase of tension among countries as they compete for resources and the rise of China have impacted the world in many aspects. The dimensions discussed in this paper as the approach to an under way transition being driven by the rise of China has provided a broader view to the changes in the world wide structural energy system.
According to the paper, oil and natural gas still remain the most pressured commodities and key drivers of the economy. The paper underscored the value of energy in the countries’ micro and macroeconomic programs. The overall politics in any country currently reflects the surging need for energy and its rising competition on the international front. The global development and the geopolitical inference resulting from the eminent power shift have revolutionized the struggle for resources.
Furthermore, the paper briefly assesses the key primary regions including China, the United States and the Middle East geopolitical interaction, notably Asia. It is believed that the period of readily available oil is fading and future prospects of high energy cost are viable. High demand for gas and oil flow will soar, therefore, leading to a drop in the economic down-turn. The article focuses on international trade on oil and gas, the alternating duty of the old worldwide oil companies and the rise of new oil companies with high technology. The growth of global economy for a long time has been adversely affected by low energy prices. Acquisition of cheap oil remains crucial and every country is scrambling around for a panacea to the oil menace. Affordable energy costs have a direct impact to the living conditions and the countries overall growth domestic product; this explains why most countries fight to retain low energy costs.
According to the paper, the primary task to counter the energy crisis is to let the market forces regulate themselves and the price should be mirrored on supply and demand variation, venture and advancement on rising prices. Viable areas discovered are likely to undergo political turmoil in the developing countries or in the geographically inaccessible regions like the Arctic. As a result, high dependence will be on traditional exploration oil methods. With the emergence of state run oil companies, the significant role played by international oil companies has gradually reduced. In most cases foreign oil policies are formulated but are not adhered to by these countries. Moreover, these companies are barred from using state funds to invest or maintain their social policy obligation. Corruption and embezzlement have crippled state run oil companies, thus making them inefficient or difficult to gain access to oil reserves exploration due to lack of proper technology.
Middle East, Iran and Central Asia have vast gas resources, which cannot be exploited due to the frequent political turmoil and terrorist attacks. Even though energy might intensify conflict fact, it remains a primary cause in the Middle East. Anxiety has however been raised on susceptibility to interference and price impact from sources such as unreliable climatic change, terrorist attack, political instability and piracy. The US being a super power and a major oil importer has influenced global balance. Fundamentally regional political interference causes price variation among oil exporters and importers. The alternating regional politics over oil has affected the structure and order entailing the relationships amid major powerful nations.
In conclusion, the regional transformation in the energy sector has attracted high consideration in the geopolitical connotations as the energy sales rise. The increase in the oil prices will in turn influence the invention of the new ways of producing oil to curb increased oil consumption in various countries such as China and the United States.