Browsing by Subject "öljymarkkinat"

Energy issues occupy a central role in the international political arena. The dynamics of increasing fossil fuel demand and the geographical concentration of fossil fuels industry are changing the structure of oil and gas markets. At the same time, national oil companies (NOCs) have occupied a dominant role in charge of majority of the world's fossil fuel production and trade. These structural changes create incentives and possibilities for statist interventions in the fossil fuel markets. The study analyses whether in India's case there has been a development towards greater strategic management of fossil fuel imports during the last two decades. India presents an important and illuminating subject of energy import dependence analysis, since the country imports approximately two thirds of the oil it consumes, and the import volumes are projected to further increase along with the rapid economic growth. The study argues that energy politics cannot be comprehensively understood solely from economic or geopolitical viewpoint, but the analyst must be able to bridge different viewpoints. The study draws on the regional security complex theory originally presented by Buzan and Copenhagen School, and employs the concept of the energy security complex. The analysis is carried out by studying the overseas activities of NOCs and natural gas imports. NOCs are special actors whose behaviour includes both economic and political rationales and remains tied to their organizational setting and institutional history. It is found that several distinct dynamics are influencing the state capabilities to control the energy trade. On one hand, general liberalization trends and reforms have made the major Indian NOCs much more autonomous and their behavior such as acquiring stakes in overseas fossil fuel upstream production are best understood as results of market logics of enlargement of production and vertical integration. On the other hand, the state is actively tying energy issues into its foreign political agendas and practising energy diplomacy, seeking to create favourable prospects for the overseas activities of Indian NOCs. Energy plays a pivotal role in bilateral relations between India and its important energy supplier states, such as Nigeria and Iran. There are signs that point to the possible emergence of strategic energy alliances. However, currently the oil markets are primarily based on profit maximization logics. Therefore, the statist interference is to be understood as a latent possibility; the Indian state possesses a number of mechanisms to interfere more strongly in the behavior of NOCs, should it perceive need for such measures. Natural gas trade conducted via pipelines is by nature bilateral and more open to political considerations. In India, a number of pipeline option have been discussed, most importantly the IPI pipeline that would transfer gas from Iran via Pakistan to India. Pipelines create strong interdependencies between the adjacent parties, and IPI pipeline would transform the geopolitical structure of the region, raising the costs associated with conflicts. This interdependence is also the reason why such projects are difficult to realize. Despite the rising rates of fossil fuel demand, India is one of the most promising countries with regard to the transition towards renewable energy generation. Large parts of the country remain un-electrified, and India can build the needed electricity infrastructure on a clean table. There are good prospects for substantial amount of wind and solar power generation and India has launched some large-scaled governmental projects to support the development of its renewable sector. Still, there are a number of barriers that hinder the rapid development of the renewable energy sectors. These include complicated bureaucracy and inadequate public support for nascent ventures.