Oil and diplomacy

Last year, in the US, the number of shale oil wells has doubled. The American production is now 9.29 million barrels a day. That is about 47% of the country's daily consumption. And it takes significant pressure out of the international oil market.

It also brings the value of the barrel down.

It has consequently a major strategic impact on oil revenues in Russia and other key producers. The economic strength of such countries is seriously affected. And that will be the case in the foreseeable future. More so, as many developed economies are steadily moving out of fossil fuels into renewable sources of energy.

One of the lessons we should extract from these developments is that, when it comes to deal with adversarial countries, economic factors are at present much more effective – and acceptable – than the military ones.

A related lesson is that your adversaries will not take this matter lightly. Therefore, you must be prepared to confront them on the political field as well. And that means, among other things, promoting the appropriate public information campaigns, keeping your own citizens aware of the challenges at stake, and responding to hostile propaganda. But it also means to open dialogue lines of communication with those antagonistic countries. That´s the role of diplomacy. It is as important as ever.