Natural Resources Are Fueling a New Cold War

The modern world depends on oil and other natural resources for survival – and the most powerful countries travel the globe, searching for supplies. China, surpassed only by the US in oil-consumption levels, has blocked UN sanctions against Sudan to secure oil shipments and increasingly becomes friendly with Iran. When it come to oil, the US and China have policy differences, leading some experts to suggest that the two countries are on a “collision course.” More countries use oil to shape foreign policy: Latin America has become more anti-Western, and Venezuela could threaten to cut off oil exports to the US; as Georgia and the Ukraine favor European policies, Russia punishes its neighbors with higher oil prices; China and India cooperate on oil deals to prevent bidding contests from spiraling out of control. Oil and gas won’t become unaffordable overnight, but the era of cheap, abundant supplies is over – and countless corporations will find it more difficult to do business. The world, particularly the biggest guzzlers, must rely on human ingenuity and find alternatives to the “black gold.” – YaleGlobal