Volume 2 Chapter 12

This final chapter is an advocacy for freeing energy market operations even if legislation will be required in certain circumstances. We will see and analyse mistakes made during the past one hundred years because the energy market has always been manipulated. In the early days, oil companies used to control the market but more recently policymakers influenced by various pressure groups seem to have taken the upper hand. The fear of hydrocarbon resource exhaustion will be analysed and we will show how historically big mistakes with huge geopolitical consequences have been made. Afterwards we will study, through concrete examples, the four groups of people who have a direct interest in manipulating the market to their own advantage. By way of example, we will refer to what is actually going on in the Eastern Mediterranean Sea, and more particularly in Israel, and will show how government procrastinations are jeopardising a free market development — which is good news for some countries but very bad for others who mismatched their energy policy. Finally this last chapter concludes with some remarks on the use made of subsidies to affect both energy production and consumption. We will see how some unexpected situations have arisen, which show how subsidies can be blunt instruments when it comes to shaping energy policy.