New Energy Strategies to Break Russian Oil and Gas Dependence
Mid-August saw the signing of the Inflation Reduction Act by U.S. President Biden, which included provisions to incentivize the use of renewable energy with the goal of reducing carbon emissions. At the same time as the United States and its European allies are working to wean Europe off Russian oil and gas, they must also shield Japan and South Korea from a similar threat in the future from China.
Europe and NATO European states should immediately sever their dependency on Russian oil and gas in light of the war in the Ukraine and its ramifications for Europe's quickly diminishing energy resources, which has caused commodities prices to rise. U.S. allies in Asia and the Pacific need to examine their own dependence on energy imports from China and the likelihood that they, too, could soon face shortages.
Even if the Inflation Reduction Act serves as a solid foundation for the United States and the international community's energy policy today, that foundation needs to be constantly reevaluated considering the evolving geopolitical risks posed by Russia's top officials. To put it another way, the United States must place the transition to renewable energy sources on par with national security. Developing a supply of renewable energy using present technology is, however, far less cost-effective for larger projects due to several factors. There is a need for more innovation to bring renewable energy to the point where it can compete economically in the political market.
Increasing exports from other nations and areas is the quickest way to lessen Europe's dependence on energy imports from Russia. Because of this, the export sources and seaborne routes utilized in the Strait of Malacca and the South China Sea will be safer, which will benefit the United States' strategic and trade partners in Asia.
Without a comprehensive analysis of their cost-effectiveness at the pace at which renewable and alternative energy may be generated in practice, the best strategies for overcoming these difficulties cannot be issued in absolute terms. The future link between Middle Eastern nations, their gas and oil exports, and key trading partners in Southeast Asia, including Japan, South Korea, Australia, and the United States, will grow increasingly important in the coming years.