Lesson 6

Question 1

Explain the importance of choke points

Answer 1

• They are narrow, strategic points which are important for trade that if disrupted can have major effect
• Suez Canal blockage caused delays of trade up to weeks
• Energy pathway disrupted could cause energy insecurity in a country

Question 2

How could geopolitical animosity between countries cause disruption of energy pathways?

Answer 2

• War could break down trade relationships between countries
• Many European ceased trade with Russia such as Germany who ceased gas imports from Russia from being reliant for 50% of gas

Question 3

How else could energy pathways be disrupted from war?

Answer 3

• Prices of energy from producer could be increased, and consumer country could face inflation as goods and services increase in price
• During 1970s, ME imposed embargo on Israel-supporting countries (prices tripled from $3 per barrel)
• Oil shortages in these countries occurred and inflation skyrocketed (such as UK who reached 24% when target is 2%)

Question 4

How could social unrest disrupt an energy pathway?

Answer 4

• Somalian pirates have hijacked supertankers with $200mil of oil to hold for ransom