Windfall

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Windfall Page 56

by Meghan L. O'Sullivan


  Sykes-Picot Agreement, 249–51

  Middle East Economic Survey, 39

  Military Power of the People’s Republic of China (Pentagon report), 240

  Miller, Alexei, 201, 206

  Ming Dynasty, 235

  Ministry of Petroleum and Mineral Resources (Saudi Arabia), 1, 2, 4

  Mitchell, George, 19–21, 39–40, 305–6

  Mitchell, Todd, 21

  Mitchell Energy, 21, 22

  Mitrova, Tatiana, 185, 209

  Mogherini, Federica, 165

  Mohammed bin Salman, Crown Prince (MbS), 270–72

  Mohseni, Ebrahim, 280

  Mongolia, 199

  Moniz, Ernie, 28

  Montana, 22

  Moody’s Analytics, 110

  Morales, Evo, 37

  Morningstar, Richard, 167

  Morocco, 140, 269

  Moscow Times, 193

  Moses, Lincoln, 51

  Mosul, Iraq, 275

  Movchan, Andrey, 188

  Mozambique, 7, 69

  Mubarak, Hosni, 265

  al-Muhanna, Ibrahim, 35

  Murphy, James, 257

  Muslim Brotherhood, 251

  Myanmar, 203, 241

  Nabucco Pipeline, 167, 197, 209

  NAFTA (North American Free Trade Agreement), 105–6, 114, 115

  Naftogaz, 169

  al-Naimi, Ali, 28–29, 31–36, 39, 54, 57, 124

  Nakagawa, Melanie, 136

  National Bureau of Economic Research, 111

  National Development and Reform Commission (China), 214

  National Offshore Oil Corporation (China), 98

  National Petroleum Reserve (Alaska), 276

  National Security Strategy of the Obama Administration, 288

  National Security Strategy (Russia), 210

  nationalism, 104, 105, 211, 215, 248

  Native Americans, 159

  NATO (North Atlantic Treaty Organization), 181, 194, 195

  natural gas, xi, 7, 8, 10, 16, 27, 52, 64–80, 113, 132, 137–38

  in Arctic shelf, 22

  Barnett Shale, 20–22

  Canada and, 100

  China and, 69, 70, 73, 202–7, 210, 222–24, 227, 241, 294, 302, 303

  demand for, 88, 202

  Iran and, 197, 281

  Iraq and, 197

  Mexico and, 96, 98, 100

  prices, 151, 154, 175, 177–80

  Russia and, 69, 88, 166, 168, 169, 176–79, 181, 192, 200, 223, 284, 287, 301

  shale gas production, 23, 151

  substitute for coal, 151, 153

  Ukraine and, 169

  unconventional, 17–19, 97

  U.S. and, 70, 73, 75–76, 78, 79, 88, 94, 105, 110–12, 126, 161, 175–78, 227, 241–42, 287, 290–91, 292, 293, 306

  Nazdratenko, Yevgenii, 199

  Netanyahu, Benjamin, 277

  Netherlands, 78, 171

  Neutrality Acts, 109

  New York state, 157

  New York Times, The, 15, 86, 279

  Newell, Richard, 152, 153

  Nicholas II, Czar, 183

  Nigeria, x, 34, 57, 96, 119, 149, 232, 264, 266, 300

  Nixon, Richard M., 242

  on energy independence, 84

  energy policy of, 92, 142–43

  North Africa, 91, 206 (see also specific countries)

  North Dakota, 22, 33, 45, 112, 113

  North Korea, 67, 199

  nuclear program in, 38, 122–24, 138

  North Sea oil, 31

  Northern Caucasus, 191

  Northern Ireland, 172

  Norway, 16, 27, 78, 96, 171, 174, 179

  Norwegian shelf, 200

  Novatek, 191

  nuclear deterrence, 109

  nuclear energy, 6, 27, 68, 93, 137, 148, 153, 157–58, 177, 222, 227

  “Nuclear Energy and the Fossil Fuels” (Hubbert), 43–44

  nuclear weapons, 38, 121–24, 138, 246, 251, 256, 280, 290

  Nye, Joe, 128, 259, 303

  Obama, Barack, 16, 93, 109–10, 143, 150, 204, 246, 276

  China and, 138, 139, 155, 242–44

  climate change and, 93, 109–10, 136, 137, 243–44

  Cuba and, 289–90

  on energy independence, 84, 255

  Keystone XL pipeline and, 101–3

  sanctions against Iran and, 122–23, 125

  State of the Union address (2014), 68, 111

  summit with Japanese leader, 67–68

  Oegg, Barbara, 126

  Ohio, 112

  Oil-for-Food Program, 284

  oil indexation, 67, 78, 179, 303

  Oil Lift, 258

  oil prices, 2–7, 15, 24–26, 28, 29, 33, 36–39, 85, 93, 98–100, 112–13, 120, 123–24, 143–44, 147, 149–50, 154, 182, 185–88, 190, 197–98, 203–6, 211, 257, 262–63, 265–69, 274, 279, 281, 285, 289, 303–4

  oil reserves, 86, 142–44

  oil sands, 18, 42, 98, 99, 101, 102, 148

  oil shale, 148

  Oklahoma, 20, 158

  Oman, 254, 265, 267–69

  One Belt, One Road initiative, 235–36

  Orange Revolution, 194

  Organization for Economic Cooperation and Development (OECD), 49, 92, 111

  Organization of Petroleum Exporting Countries (OPEC), 3–5, 8, 26, 27, 30–43, 54–62, 72, 142, 144, 197, 251, 254, 255, 262, 263, 286, 291, 303

  Osceola, Arkansas, 111

  Ottaway, David, 261–62

  Ottoman Empire, 249

  Oxford Institute for Energy Studies, 197

  P5+1 talks, 123, 197, 246, 280

  Pacto por México, 96

  Pakistan, 74, 140, 241

  Palestine, 269

  Palestinians, 197, 245, 261–62

  Palti-Guzman, Leslie, 74

  Paltsev, Segey, 223–24

  Pape, Robert, 126

  Papua New Guinea, 141, 206

  Paris Agreement, 51, 136–38, 155, 156, 223

  Paulson, Hank, 109

  Pavillion, Wyoming, 158

  Peabody Energy, 151

  peak oil, 43–45, 48, 62, 127, 214, 302

  Peaking of World Oil Production: Impacts, Mitigation, and Risk Management (Hirsch Report), 45

  Pearl Harbor, 283

  Peloponnesian War, 238

  PEMEX (Petróleos Mexicanos), 96, 97, 104

  Peña Nieto, Enrique, 95–97

  Pentagon, U.S., 119–20, 121, 240

  People’s Republic of China (see China)

  Persia, 283

  Persian Gulf, 246, 253

  Peshmerga, 274

  Petraeus, David, 119, 121

  Petrocaribe, 295

  Pinker, Steven, 131

  pipelines, 64–67, 74, 75, 78, 80, 177

  in Asia, 201–3, 205

  in Europe, 167, 168

  Kurdish, 274–75

  Middle East, 198

  reverse, 168

  Pipes, Daniel, 255

  Poland, 47, 69, 140, 167, 169, 172, 174

  shale development in, 170–71

  Polish Geological Institute, 171

  population, 49, 59, 199, 268, 278

  populism, x, 104, 286

  Porter, Michael, 160–61

  Portugal, 175, 177

  poverty rate, 108

  Powell, Colin, 228

  Power of Siberia project, 202, 203, 207

  Primoskii Krai, 199

  Pripyat, Ukraine, 157–58

  Private Empire (Coll), 301

  Prize, The (Yergin), x

  Prodi, Romano, 135

  “Promoting Energy Independence and Economic Growth” (executive order), 84, 155

  Public Service Electric & Gas Company, 112

  Pushkov, Alexei, 203, 279

  Putin, Vladimir, 37, 125, 129–30, 165, 166, 167, 177, 183–86, 188–98, 200–203, 210–11, 300, 301

  Pyrenees Mountains, 177

  Qaddafi, Muammar, 305

  Qatar, 66, 96, 251, 265, 268

  Qatar Petroleum, 52

  Qing Dynasty,
243

  Raimi, Daniel, 152

  Ramírez, Rafael, 34

  Randall, Clarence B., 91

  Rapidan Group, 74

  Rasmussen, Anders Fogh, 173

  Rayburn, Sam, 91

  Reagan, Ronald, 254

  economic policy and, 108–9, 182

  European relations and, 167, 168

  recessions, 5–6, 108, 109, 112, 113, 289

  Reed, Jack, 120

  reference case scenarios, 52

  Reid, John, 16

  renewable energy, xi, 9–10, 17, 68, 70, 86, 93–94, 146, 153, 154, 167, 180, 222, 224, 245, 294

  resource curse, 264

  Resources for the Future, 153

  Rice, Condoleezza, 85, 135

  ride pooling, 53

  Rockefeller, John D., 54

  Rogers, Howard, 156

  Rogov, Kirill, 193

  Romania, 66, 140

  Romney, Mitt, 255

  Roosevelt, Franklin D., 252–53, 270

  Rosneft, 191, 193

  Rouhani, Hassan, 37, 38, 123

  Royal Navy, 283

  Russia, 8, 37, 47, 57, 72, 78, 118, 132, 181–211

  annexation of Crimea and, 125, 165–68, 174, 180, 184, 191, 195, 198, 200, 289, 299

  China and, 80, 198–205, 202–8, 212, 287, 289, 296, 298–99

  declining leverage over Central Asia of, 208–10

  economy in, 182–90, 192–96, 211, 299–301

  elections of 2016 to Duma, 189

  energy reform in, 191–93

  GDP of, 185

  Iran and, 122

  Japan and, 125–26

  military budget of, 279

  natural gas exports of, 166, 168, 169, 176–79, 181, 192, 200, 223, 287

  natural gas, integrated global market, 78, 79, 132

  natural gas production in, 69, 88, 166, 200, 284, 301

  nuclear arsenal of, 183

  oil prices and, 182, 185–88, 190, 197–98, 203–6, 211

  oil production in, 2, 6–7, 32, 34, 48, 186, 305

  population of, 199

  Reserve Fund, 187

  sanctions against, 125, 126, 165, 166, 183, 184, 186, 190, 196, 204–6, 298

  Saudi Arabia and, 279–80

  shale gas development and, 173

  Stabilization Fund, 186–87

  stock market in, 189–90

  Syria and, 195–96, 278–80

  Turkmen gas trade and, 208–10

  Ukraine and, 65–66, 125, 165, 166, 169, 174, 180, 184, 189, 195, 200, 202, 205, 284

  Russian Far East, 198–200

  Russian Federal Migration Service, 199

  Sabine Pass, Louisiana, 241

  St. Petersburg International Economic Forum (2014), 199

  Sakhalin-1, 125

  Salih, Barham, 250

  sanctions, 127, 195, 295

  against Iran, 95, 121–25, 197, 251, 280, 290

  against Iraq, 118

  against Russia, 125, 126, 165, 166, 183, 184, 186, 190, 196, 204–6, 298

  Santos, José Eduardo dos, 231

  Sanusi, Lamido, 232

  Sata, Michael, 232

  Al Saud, King Salman bin Abdulaziz, 34, 260, 266, 269

  Saudi Arabia, 1–5, 7, 26–30, 92, 99, 118, 197–98, 251, 265–66, 297, 305

  breakeven price and, 266–68

  demographic growth in, 268

  economic reform in, 270–72

  energy demand in, 269

  financial reserves of, 267, 268

  government of, 265–66

  Iran and, 38, 56, 279

  military budget of, 279

  oil production in, 2, 27, 28, 30, 31, 33–39, 53, 57, 59, 60, 61, 88, 96, 124, 142, 253–55, 269

  population of, 268

  Public Investment Fund, 271

  Russia and, 279–80

  September 11, 2001 terrorist attacks and, 256

  Syria and, 278–79

  U.S. and, 252–54, 256, 259–61

  Saudi Arabian Monetary Authority, 26

  Saudi Aramco, 31, 54, 245, 269, 270

  Saudi Basic Industries Corporation, 111

  Saudi Vision 2030, 270, 271

  Al-Sayari, Hamad Saud, 26, 27, 30

  Schott, Jeff, 126

  Scotland, 48, 55

  shale gas resources in, 172

  sea lanes, 16, 292

  Senate Armed Services Committee, 120

  Senate Foreign Relations Committee, 228

  September 11, 2001 terrorist attacks, 256

  serendipity, 88, 306

  Seven Sisters, 55, 92

  Shah Deniz II gas field, 167

  Shaikin, Alexander, 199

  shale gas, 18, 20–23, 33, 47, 69–73, 75–77, 100, 112, 113, 137, 139–40, 149–51, 153, 155, 156, 169–73, 181, 287, 291, 292, 299, 305

  Shale Gas Five-Year Plan (China), 69

  shale oil, 18, 46, 285

  Shanghai Cooperation Organization, 210

  Shell Oil, 22, 43, 44, 146, 171, 231

  Shenzhen, China, 225

  Shifang, China, 221

  Shirk, Susan, 217

  Shtokman gas field, 200–201

  Siberia, 168, 200–202

  Sierra Leone, 7, 141

  Sikorski, Radoslaw, 171

  Silk Road, 235, 244, 245

  Silk Road Fund, 235

  Siluanov, Anton, 185, 187

  Simmons, Matt, 15, 39

  Sinai Peninsula, 74

  Singapore, 23, 303

  Singh, Manmohan, 139

  Single European Market, 168

  Sinopec, 231, 233

  Sioux tribe, 159

  al-Sisi, Abdel Fattah, 261

  Slovakia, 174

  Slovenia, 169

  Smith, Frederick W., 87

  Smith, Michael, 241

  social license, 156, 157, 159–61, 292, 297

  soft power concept, defined, 128

  solar energy, 17, 68, 137, 146, 224

  solar photovoltaics, 10

  Solovyev, Vladimir, 194

  Sonangol, 231

  Sotloff, Steven, 2

  South Africa, 140, 150, 232

  South America (see specific countries)

  South China Sea, 205, 240, 298

  South Korea, 125, 199

  Soviet Union, x, 129

  Chenobyl nuclear reactor, 157–58

  collapse of, 182, 192, 194, 205, 208, 267, 284, 290

  economy in, 109

  invasion of Afghanistan by, 253

  oil production and, 253, 305

  pipeline issue and, 168

  (see also Russia)

  Spain, 175, 177

  spare capacity, 30–31, 56, 61, 259

  Sparks, Oklahoma, 158

  Stabenow, Debbie, 241

  Standard Oil, 54

  Standing Rock Indian Reservation, 159

  State, U.S. Department of, 76, 83–84, 102, 139–41, 228

  Statoil, 96, 98, 179

  Steinberg, Don, 83–84

  Sterling, Ross, 55

  Stern, Jonathan, 79, 171

  Stevens, Bill, 21

  stock markets, 5, 6, 108, 220

  Strait of Hormuz, 245–46

  Strait of Malacca, 204, 236

  stranded assets, 282

  Strategic Petroleum Reserve (SPR), 86, 142–44, 295

  substitution effect, 152

  Sudan, 228–30, 233, 269

  Suez Crisis (1956), 109, 258

  Summers, Larry, 93

  Sun Yat-sen, 212

  SUVs, 88

  Sweden, 174

  Sykes, Sir Mark, 249

  Sykes-Picot Agreement, 249–51

  Syria, 74, 195–96, 251, 265, 276

  civil war in, 1, 56, 197, 278

  population in, 278

  Szakonyi, David, 190

  Taiwan, 240

  Tajikistan, 209

  Tamar natural gas field, Israel, 275, 276

  Tamarod Movement, 251

  Tanaka, Nobuo, 16

  Tarim Basin, 222

 
Temasek Holdings, 23

  Texas, 19–23, 33, 45, 46, 91, 111, 112, 113, 142, 158

  Texas Railroad Commission, 22, 55

  Third Energy Package (2), 168, 195

  Thucydides trap, 238, 298

  Tierney, John, 15, 39

  tight oil, 18, 23–25, 32–36, 40, 42, 45–48, 57–62, 148, 149, 291, 292, 303–5

  Tillerson, Rex, 104

  Timor-Leste, 141

  Trans-Pacific Partnership, 67

  transportation, 50, 52, 53, 67

  Treasury, U.S. Department of, 121

  Treaty of Friendship of 2001 (Sino-Russian), 205

  Treaty on the Non-Proliferation of Nuclear Weapons, 122

  Trenin, Dmitri, 183, 189

  Trudeau Justin, 102

  Trump, Donald

  “America First” approach of, 105

  election of 2016 and, 131, 255

  energy independence and, 84

  energy policy of, 155

  inaugural address of, ix

  Keystone XL pipeline and, 101–2

  Mexico and, 104

  NAFTA and, 105

  Paris Agreement and, 243–44

  Trump administration, 137–38, 141–42, 145, 156, 244, 290–91

  Tunisia, 251, 265

  Tunisian National Dialogue Quartet, 251

  Turkey, x, 66, 74, 175, 251, 260, 272, 274–77, 281

  Turkmenistan, 203, 208–10

  TurkStream, 277

  Tusk, Donald, 69

  Twitter, 221, 266

  2016 Energy Outlook (BP), 51

  Uganda, 7, 141

  Ukraine, 65–66, 125, 140, 167, 170

  Chenobyl nuclear reactor, 157–58

  natural gas imports of, 169

  Orange Revolution in, 194

  Russia and, 65–66, 125, 165, 166, 169, 174, 180, 184, 189, 195, 200, 202, 205, 284

  Umbach, Frank, 68

  Unconventional Gas Technical Engagement Program, 140

  unconventional resources, defined, 148

  unemployment, 108, 109

  United Arab Emirates (UAE), 34, 254, 259, 265, 268, 270

  United Kingdom, 27, 72, 258

  United National Environment Program, 154

  United Nations, 1, 128, 137, 228

  Oil-for-Food Program, 284

  United Nations Climate Change Conference (2015), 136, 137

  United Nations Framework Convention, 155

  United States, 5–8, 16

  Arab oil embargo (1973) and, 66, 85, 86, 133, 263, 284

  Canada and, 293

  China and, 119, 136–39, 155, 215–16, 238–44, 246–47, 294–95, 298

  energy independence and, 84–86, 90–91, 106–7, 286, 287, 292

  GDP in, 110, 111, 126

  import restrictions and, 91–93

  job creation in, 110–11

  leveraging new strategic environment, 181, 296–99

  LNG exports, 175–76, 179, 241

  Mexico and, 114–15, 293

  military operations by, 119–21

  natural gas exports and, 88, 105, 115, 116, 126, 175–78, 181, 227, 241–42, 287, 293, 306

  natural gas production in, 70, 73, 75–76, 78, 79, 80, 88, 110–12, 290–91, 292

 

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