6.4C - Energy Players
Energy players (P: role of TNCs, The Organisation of the Petroleum Exporting Countries (OPEC), consumers, governments) have different roles in securing pathways and energy supplies.
An energy pathway is the route taken by any form of energy from its source to its point of consumption. The routes involve different forms of transport, such as tanker ships, pipelines and electricity transmission grids.
At the supply end of the pathway, there are energy companies and the governments of energy-producing countries. There are governments at the demand end also, as well as a range of consumers from industrial to domestic. Along the pathways, there are companies responsible for the movement and processing of energy.
TNCs
The big names in the oil and gas business include Gazprom, ExxonMobil, PetroChina and Royal Dutch Shell. Nearly half of the top 20 companies are state-owned (all or in part) and, therefore, very much under government control. Because of this, strictly speaking they are not TNCs. Most are involved in a range of operations: exploring, extracting, transporting, refining and producing petrochemicals.
Organisation of the Petroleum Exporting Companies
OPEC has 14 member countries*, which between them own about two-thirds of the world's oil reserves. Because of this, it is in a position to control the amount of oil and gas entering the global market, as well as the prices of both commodities. OPEC has been accused of holding back production in order to drive up oil and gas prices.
*Qatar left in January 2019
*Qatar left in January 2019
Energy Companies
Important here are the companies that convert primary energy (oil, gas, water, nuclear) into electricity and then distribute it. Most companies are involved in the distribution of both gas and electricity. They have considerable influence when it comes to setting consumer prices and tariffs.
Consumers
An all-embracing term, but probably the most influential consumers are transport, industry and domestic users. Consumers are largely passive players when it comes to fixing energy prices.
Governments
They can play a number of different roles; guardians of national energy security and can influence the sourcing of energy for geopolitical reasons.