In a plot reminiscent of a James Bond film, in late December 2013 the British government announced the construction of a massive new oil pipeline across Europe.
The geopolitical narrative that underlies this development is, of course, the diminishing resources of gas in Europe, and the reliance many countries now have on Russia. Russia holds the supplies, controls the pipelines, and to continue our Ian Fleming analogy, has the power therefore, to turn the taps on or off, controlling supply…. And therefore pricing.
The response, announced by William Hague (Britain’s Foreign Secretary) is, however, rather less shadowy and convoluted. Essentially it’s this: if you won’t let us play with your pipeline, we’ll build our own… and bypass you. The continent, it is felt, has been too reliant on Russia, and this new pipeline will create an alternative route and thereby stabilise energy supply. However, it’s a rather more expensive version of playground realpolitik, as this pipeline is set to cost approaching £30 billion, and runs not through the infants’ sandpit, but from the Caspian Sea via Greece, Turkey, Bulgaria and Italy.