An interview with Ambassador Richard Morningstar.

PositionENERGY PRICES AND EUROPEAN ENERGY SECURITY - Interview

Ambassador Richard L. Morningstar is the Founding Director of the Global Energy Center at the Atlantic Council. He served as the U.S. Ambassador to the Republic of Azerbaijan from July 2012 to August 2014. He is one of the leading energy experts in the United States. Morningstar provided The Journal with insight on the political results of declining energy prices, new trends in energy, the impacts of the energy abundance in the United States and the nexus of climate change and global security.

Journal of International Affairs: What are the reasons behind declining energy prices? Is it a fundamental change in the supply side or is it just because of a temporary market move?

Ambassador Richard Morningstar: Prices have moved back and forth many times in the past. I think the real question is how long low energy prices will continue. It is very difficult to predict. It will depend on demand and whether the supply glut continues. Will certain countries at some point cut production? Will there be disruptions in certain countries that can have negative effects on supply? All of these factors will contribute.

Journal: What are the current and future economic and political impacts of a decline in energy prices?

Morningstar: Clearly, declining energy prices are having an impact, particularly on certain countries. Low prices are affecting the economies of countries heavily reliant on hydrocarbon revenue, creating budget shortfalls. Clearly Saudi Arabia has made a determination that it wants to keep production up to maintain its market share. There is a question of how long a country like Saudi Arabia can handle low prices without instituting major changes. Moreover, low energy prices will certainly have an affect in Russia, Iran, Iraq and in all producing countries. Low prices are beginning to have some effects in the United States with respect to production.

Journal: What kind of geopolitical effects will result from the economic issues facing these countries?

Morningstar: Low gas and oil prices have had an effect in Russia. They also have an impact on European energy security in the sense that prices are low which ultimately can have a positive effect even though Europe must do a lot more to ensure its energy security. Whether or not low prices had an effect on Iran entering the nuclear agreement, one can only speculate. One can also only speculate whether Russia's intervention in Syria is in part to create a distraction from its its economic...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT