ODAC Newsletter – Jan 13

Fears of an EU recession gained ground this week with news that the German economy shrank in Q4. In oil markets this dunked oil prices to a New Year low – though they quickly recovered on Thursday in response to renewed concerns of supply disruption. In Nigeria unions threatened to escalate nationwide strikes to the oil production sector at the weekend if the government fails to reverse recent cuts in fuel subsidies.

Danger waters

Welcome to an edgy world where a single incident at an energy “chokepoint” could set a region aflame, provoking bloody encounters, boosting oil prices, and putting the global economy at risk. With energy demand on the rise and sources of supply dwindling, we are, in fact, entering a new epoch — the Geo-Energy Era — in which disputes over vital resources will dominate world affairs. In 2012 and beyond, energy and conflict will be bound ever more tightly together, lending increasing importance to the key geographical flashpoints in our resource-constrained world.