Economics: Energy mercantilism

The machinations of giant economic actors on the global oil and gas scene suggest that with diminishing reserves of oil, the interplay between nature, state, and market will become increasingly complex, and deserving of scrutiny, in the decades to come

…Jeff Vail, an energy analyst, describes the phase that the world of oil is moving into as


The worry that oil is running out, with gas not far behind, has led to a situation where a perceived essential ingredient of economic growth is dwindling before our eyes. The aggressive manoeuvring of national oil companies (NOCs), especially Asian ones, a resurgence in resource nationalism, and a rush to secure oil by exclusive bilateral contracts are all rooted in the belief that energy will be very scarce, very soon.

Most economists would scoff at any suggestion that the creation of economic wealth can have bounds; if you innovate, it will grow. They would probably dismiss energy mercantilism as a temporary aberration from a self-correcting global energy market, and as foolish interventions by misguided states. But is the idea of limited wealth really so laughable?

Daily Times (Pakistan)