The European Union oil dependency: a threat to economic growth and diplomatic freedom

Abstract

Purpose: This paper provides a general review of the current energy dependency of the European Union (EU) and the possible threat that it poses to economic growth and diplomatic freedom. Design/methodology/approach: Systematic literature review with a narrative approach to analyze historical data, statistics and energy policies and determine if the EU oil dependency represents a threat to economic growth and diplomatic freedom. In addition, a review of the US policy “America first” is also included to analyze its impact on the EU. Findings: The energy dependency rate of the EU increased 12 percentage points from 1990 to 2018. Russia has become the largest oil supplier for the EU tripling Norway, the largest supplier in the 1990s. The oil dependency of the EU on Russia is a difficult situation where guaranteed energy supply and diplomatic freedom becomes a national political controversy. Even though the USA is currently a top world exporter of oil, the EU does not rely on the USA. The findings suggest that the EU needs to secure a reliable energy supplier to guarantee economic growth, reduce energy scarcity and enhance diplomatic freedom. Originality/value: This paper provides a historical examination of the EU oil dependency considering its impact on economic growth and diplomatic freedom.