The geopolitics of trillion US$ oil & gas rents

Abstract

Physical oil and gas abundance, turned in market scarcity, do prices of oil and gas spike and cashed rents mount. For the years 1970-2020, the rents from crude oil and natural gas sales are expressed in US$-2020, revealing the magnitude and volatility of the money flows. Peak rents coincide with turmoil implying particular oil & gas exporting countries. Oil & gas geopolitics metamorphosed from conquering oil deposits to precluding oil & gas exports by ‘hostile’ nations. Such preclusions turn physical abundance in market scarcity, boosting oil & gas prices [1,2] and rents (also called royalties, windfall, super profits). Rent skimming is also a part of the 2022 Ukraine war. Climate change mitigation intensifies geopolitical efforts to curtail the exports of ‘hostile’ nations.