Skip to main content

Oil and Gas, Crucial Changes

The hunger for capital and raw materials which drives Donald Trump's challenges is indicative of the anxieties of the leading imperialisms, pressured by the steady maturation of Chinese imperialism. American power is in relative decline, and although still the best equipped, it does not have sufficient strength to continue playing the role of a hegemonic power, as it has done more or less since 1945 amid numerous crises.

In 1973, Charles Kindleberger [1910-2003], an important historian of the Great Depression, derived from the historical experience of the hegemonic systems of the United Kingdom and the United States five imperatives concerning the role of the leader or stabiliser country: 1) maintain a relatively open market for surplus goods; 2) provide long-term countercyclical or at least stable loans; 3) maintain a relatively stable exchange rate system; 4) ensure the coordination of macroeconomic policies; 5) act as lender of last resort through discounting or providing liquidity in financial crises. The unilateral America First line, tariffs as a universal panacea, the hypothetical one-sided monetary pact of Mar-a-Lago, the idea of an American golden age financed by the rest of the world, and the commodification of leadership and alliances all point in the opposite direction. The Federal Reserve, attacked and reviled, is the institution that should act as the global leader of last resort.

In his liberal view, Kindleberger omits military force, which was widely used by both London and Washington, both on the battlefield and as a deterrent. But it would be difficult to place Trump even within coercive hegemonic theories that envisage the use of force as a means of enforcing rules. What rules? The only limits Trump recognizes are, by his own admission, his morality and his mind. The assault on Venezuela and the decapitation of Nicolás Maduro's regime, the bombing of Iran, and the threats to annex Canada and Greenland are aimed at the appropriation of resources and the geopolitical security of the United States alone.

Fracking and LNG

In the years following the global financial crisis of 2008-09, the world's energy map underwent three major changes. First, technology for fracturing underground rock formations permeated with gas and oil led to an influx of thousands of independent drillers into the basins of the new black gold, shale gas and shale oil. With the impetus of the world's leading financial and technological power, for a decade two-thirds of the United States' net industrial investment was poured into this new energy source. Thanks to this investment, backed by the banks, the US became the world's leading energy power and a major exporter of shale gas in the form of liquefied natural gas (LNG). Since 2015, global LNG consumption has grown at twice the rate of natural gas, and since 2023, LNG has become dominant in long-distance gas transport. The International Energy Agency (IEA) predicts that by 2030, an additional LNG production and export capacity of 300 billion cubic metres (bcm) will come online; half of this new capacity is under construction in the US and a quarter in Qatar. The IEA fears that there will be an imbalance between the huge increase in capacity and the increase in demand for LNG, which is expected to be only 200 bcm.

Production redundancy is inherent in the way the energy sector operates, especially since energy has become a political weapon among the major powers. On the one hand, activities that consume unimaginable amounts of energy, such as artificial intelligence data centres and cryptocurrencies, are emerging. On the other hand, this is an era of profound change in energy flows: redundancy may serve to further accelerate the replacement of coal in electricity generation, which, in emerging Asian countries, is absorbing 30% of the new demand for natural gas. This process has also occurred in the United States, where coal's use as a fuel for power plants has fallen from 50% in 2007 to 15% in 2024, while natural gas has grown from 20% to 45%. These are highly differentiated processes. Germany replaced nuclear power, abandoned after Fukushima, and some of the coal in its power stations with wind and solar energy (52% of the total) rather than gas, despite massive imports of Russian gas, for as long as that lasted. China remains the largest and still growing user of coal in power stations, despite its extensive use of renewables (over 20%).

Withered Green

The second change was initially driven by Europe, while the US achieved energy primacy, overtaking both Russia and Saudi Arabia in oil production in 2014. The dramatic dependence on Russian gas and the strategic power shift represented by US shale, formed the basis for Europe's launch of its own long-term model of energy self-sufficiency, centred on renewable energy, the electrification of transport and civil consumption, and the decarbonisation of industrial consumption. The 2015 Paris Agreement was presented as a global model for climate stabilisation and planet protection. The goal of zero greenhouse gas emissions by 2050 is more than ambitious — unrealistic, according to some — because it would disrupt lifestyles and their costs within a generation. It would require a fivefold increase in the share of renewable energy in the global energy supply, from 13% in 2024 to 70% in 2050, and a threefold increase in electricity generation (from 32% to 90%).

The path is bumpy and contested: under Trump, the US withdrew from the Paris Agreement twice, in 2020 and 2025. There is resistance to the phasing out of combustion engines from large sections of the population, several automotive groups, and the most energy-intensive industrial sectors; furthermore, the disintegration of coalitions of large financial groups created to support the green economy, which have nevertheless issued hundreds of billions of green bonds, and the illusory attempts to involve the petro-States in the electric transition have slowed down the energy plan of old Europe and extended its timeframe.

While China pushed ahead with determination in the energy transition, with its share of global renewable energy supply growing from 10% to 22% between 2010 and 2024, the share of the European Union fell from 18% to 14% and that of the United States from 15% to 13%. In 2024, China added more renewable energy than the rest of the world combined. What began as a European initiative grew into a Chinese one, embodied in 2025 by the staggering export of seven million electric vehicles.

The green economy has developed a series of technological innovations, leading the way in research on critical minerals and rare earths; the heralds of digital civilisation and artificial intelligence have joined the mission. Rearmament will want its share.

The disruption of gas pipelines

The third change was triggered by Russia's invasion of Ukraine in February 2022 and the severe energy crisis that followed in Europe. European sanctions and Russian counter-sanctions reduced Russian gas supplies from 155 billion cubic metres in 2021 to 52 in 2024 and 39 in 2025. According to data published by the European Council, the missing 100 bcm from Russia has only been partially replaced by additional supplies of American and Norwegian LNG. Even for the Russians, the 100 bcm lost in Europe has only been partially recovered in Asia. OPEC reports a decline in total Russian gas exports from 244 bcm before the war to 159 bcm at the end of 2024. China has purchased 40 bcm, but only after 2030 will it perhaps take another 50, when the Power of Siberia 2 gas pipeline passing through Mongolia comes into operation, assuming it does. The Energy Information Administration noted last September that no agreement has yet been reached on the contractual terms between Russia and China for this project, which will require the construction of 2,000 miles of new pipelines. From 2026, Ukraine will permanently stop all Russian gas transit through its territory.

The energy Rapallo that lay at the heart of German and European Ostpolitik and weathered the storms of the Cold War and the global financial crisis seems set to remain a closed chapter for a long time to come, at least as far as gas pipelines are concerned. The ledger of Russian LNG, however, may remain open.

The weaponisation of prices

When large fluctuations in energy prices occur, they move many pieces on the global chessboard. Their explosion after the two oil crises of the 1970s inflated oil and gas rents in the petro-States, creating one of the conditions — the financial one — for the bloody war between Iran and Iraq and the Russian invasion of Afghanistan. In 1985-86, the counter-shock of low fuel prices began, lasting about ten years; in the second half of the 1980s, it crushed revenues, caught the belligerents off guard, and played an important role in the implosion of the Russian empire.

In his book The New Map [2020], Daniel Yergin outlines the dynamics that characterised energy prices in the first two decades of our century. He calls the decade between 2003 and 2013 the BRIC era (an acronym of the major emerging powers: Brazil, Russia, India, and China), during which these countries enjoyed the extraordinary growth of the commodity supercycle: the BRIC countries stockpiled essential raw materials; prices of oil, copper, iron ore, and other commodities rose; and emerging countries supported open markets and globalisation. During these years, the Chinese economy grew by two and a half times, India's by two times, while the world economy expanded by 30%. In this cycle, investment in American shale grew with less fanfare. Oil prices remained stable at $100 per barrel for three years, between 2011 and 2013. It was a period of profound social and political upheaval in the Middle East, with the Arab Spring uprisings, the fall of rulers, destruction affecting oil companies in Nigeria, and dramatic impoverishment of the populations of Venezuela and Iran. Prices began to fall in the autumn of 2014, and by early 2016 they had fallen below $30 per barrel.

Two middle powers put to the test

The decisive factor was the abundance of American shale, which, by driving down prices, further weakened oil rents and made the market immune to blackmail by Iran, which was developing its nuclear programme. According to Yergin, without shale, Tehran would not have sat down at the negotiating table and the agreement to limit its programme would not have been reached in July 2015, with the withdrawal of anti-Iranian sanctions. The agreement was then torn up by the recently inaugurated President Trump in 2018. Meanwhile, to address the price emergency, an alliance was formed in November 2016 between OPEC and ten non-OPEC countries, including Mexico, Kazakhstan, Azerbaijan, Oman, and Russia, which led the group. The new grouping, called OPEC Plus or the Vienna alliance, decided to cut production by 1.2 million barrels per day (mbd). According to Yergin, this was an act of geopolitical reordering centred on the Saudi Arabia-Russia partnership, which cemented Moscow's return to the Middle East.

The stabilisation of prices was facilitated, according to Yergin, by the production disaster in Venezuela, which went from 3.3 mbd at the end of the 1990s to 0.6 mbd at the end of 2019 (0.96 mbd in 2024, according to the Italian multinational energy company ENI). Venezuela's oil sector, deprived of investment and managerial expertise and left by Maduro in the hands of the military, sits atop the world's largest proven oil reserves — 303 billion barrels, six times US reserves. Yet, it lacks the capital to extract and refine them. American and European oil companies and refineries would have the capital, but without iron-clad guarantees the commercial case is far from obvious. The Economist is sceptical: These days any old barrels won't do: they should be low-cost and low-risk. Venezuelan ones are neither.

The fate of a country whose minister of mines, Juan Pablo Pérez Alfonzo, together with his Saudi counterpart Abdullah Tariki, devised the first plan for the formation of OPEC in 1960, gives pause for thought. It also makes one reflect on the fate of a country that was a millennial empire, Iran, and which held the first general secretariat of the oil cartel with Fuad Rouhani who was adviser in the post-war period to both Mossadeq for the nationalisation of oil, and later to the Shah. Two countries rich in resources and proletarian youth, reduced to pariah States by greedy and inept bourgeoisies, held in check by the chamberlains of imperialism.

Lotta Comunista, January 2026

Popular posts in the last week

Political Battles of European Leninism

Internationalism No. 73, March 2025 Page 1 Thirty years after the death of Arrigo Cervetto , we are publishing here the concluding passages of the introduction to his Opere Scelte (“Selected Works”) for the series Biblioteca Giovani (“Publications for young people”), soon to be published in Italian. The 1944-45 partisan war in Italy. The political battle within libertarian communism. The Korean War, and the watchword of “neither Washington nor Moscow”. The layoffs at the Ilva and Ansaldo factories, the political battle and trade union defence in the struggles of post-war restructuring. From 1953 onwards, the crisis of Stalinism, the 1956 Suez crisis, the Hungarian uprising, the 1957 Theses and the challenge of theory and strategy vis-à-vis the tendencies of unitary imperialism. The political struggle within Azione Comunista (“Communist Action”) and the Movimento della Sinistra Comunista (“Movement of the Communist Left”). From the 1950s to the early 1970s, t...

The EU Commission Plans for Rearmament and a Clean Industrial Deal

Internationalism No. 71, January 2025 Page 2 From the series European news Following the European elections which took place on June 6th - 9th, the leaders of the Member States met on June 27th at the European Council. Ursula von der Leyen was nominated as president of the next European Commission, after she was chosen as the European People’s Party’s (EPP) Spitzenkandidat (“leading candidate”). The agreement also included the election of former Portuguese Prime Minister Antonio Costa as president of the European Council, and the appointment of former Estonian Prime Minister Kaja Kallas as High Representative of the Union for Foreign Affairs and Security Policy. Subsequently, on July 18th, Parliament elected von der Leyen as president of the Commission by an absolute majority, with 401 votes out of 719 MEPs. On September 17th, von der Leyen presented her team of commissioners to the European Parliament and, two days later, the Council adopted this list of...

Show Warfare?

Internationalism No. 86, April 2026 Page 16 After show politics and show diplomacy , have we sunk to the obscenity of show warfare ? On the surface, this is true. The Pentagon’s video game-style communications, where airstrikes, missile launches, and deadly explosions are set to music for social media clips, certainly suggest so. It matters little that a hundred schoolgirls were also blown to bits as artificial intelligence took centre stage on the battlefield. In reality, war propaganda has always showcased destruction and mocked the enemy; today in Washington, in the era of the high-tech groups of television and social media democracy , the only thing that has changed is the style and the means used to inflame fanaticisms and stuff people’s brains. In Tehran, dominated by a parasitic bourgeoisie that feeds on oil revenues and is intertwined with the militias and hierarchies of t...

Supplementary Materials

BIBLIOGRAPHY 1   A. Cervetto , Class Struggles and the Revolutionary Party , éditions Science Marxiste 2000. First published as Lotte di classe e partito rivoluzionario by Lotta Comunista Editions and now in its 6 th edition (Milan 2004). The volume gathers together articles published in Azione Comunista from April to November 1964. 2  Guido La Barbera, Introduction to the 2 nd edition of A. Cervetto ’s Lotta Comunista (‘The Difficult Question of Times’), Lotta Comunista Editions, Milan 2010. Reproduced in English in Our Internationalist Struggle , éditions Science Marxiste (2011). 3  Ibid. 4  A. Cervetto , ‘The True Partition of the World between the USSR and the USA’. First published in Lotta Comunista , September-October 1968. Subsequently included in Imperialismo Unitario (Unitary Imperialism), Lotta Comunista Editions, Milan 1996. 5  A. Cervetto , ‘Eu...

India’s Weaknesses in the Global Spotlight

Farmers’ protests around New Delhi have been going on for four months now. A controversial intervention by the Supreme Court has suspended the implementation of the new agticultural laws, but has raised questions about the dynamics between the judiciary and the executive, and has failed to unblock the negotiations between government and peasant organisations. The assault by Sikh farmers on the Red Fort during the Republic Day parade as India was displaying its military might to the outside world — the Chinese Global Times maliciously noted — paradoxically widened the protest in the huge state of Uttar Pradesh. The Modi government has been trying to revive India’s image with the 2021 Union Budget: it announced one hundred privatisations and approved the increase to 75% of the limit on direct foreign investment in insurance companies. For The Indian Express ( IEX ) this is a sign of the commitment to push ahead with reforms despite the backlash from rural India. Also for The Economi...

The Four Petrochemical Giants

Internationalism No. 86, April 2026 Page 15 From the series Major industrial groups in China When the People's Republic of China was founded in 1949, oil extraction in the country was practically non-existent, and the country was completely dependent on imports. The exploration and development of domestic oil resources required a major effort. As Jin Zhang reports in his book Catch-up and Competitiveness in China [Routledge, 2004]: The required massive human resources were supplied by the People's Liberation Army (PLA). In 1952, Mao Zedong ordered the reorganisation of the 57 th Division of the 19 th Army of the PLA into the 1 st Division of Oil . The effort led to the discovery of several oil fields, the most significant of which was in Daqing, Heilongjiang Province, in northeastern China, in 1959. It became operational the following year, reaching a ...

ByteDance & TikTok

Internationalism No. 86, April 2026 Page 10 From the series The telecommunications battle Imagine that a full-screen video turns your phone into a window. You can see a vast world through this window. Douyin is a projection of this colourful world . Douyin is the Chinese version of TikTok, and these words were spoken by Zhang Yiming, founder of ByteDance, the Beijing-based parent company of both applications. Matthew Brennan notes this in his book Attention Factory: The Story of TikTok &ampersand; China's ByteDance . The front page of the ByteDance website reads: Our Mission: Inspire Creativity, Enrich Life . A colourful and fun world, built on short videos, is also capable of generating major business. It is estimated that global users have exceeded two billion in total, mostly very young people. ByteDance is not yet listed, and its revenue is estimated by ana...

The New Electro-Nuclear Era

Internationalism No. 86, April 2026 Page 14 From the series The world energy battle A weather phenomenon dubbed Dunkelflaute is causing havoc in Germany and pushing energy prices to two-decade highs ( Fortune, December 12th, 2024 ). Uncertainty in renewables and nuclear energy The German term Dunkelflaute combines the words Dunkel (dark) and Flaute (lull, absence of wind) and refers to a series of days when dense clouds descend over northern Europe. During a Dunkelflaute event, solar panels produce little energy and wind turbines slow to a halt. This weather phenomenon can occur two to ten times a year, usually in autumn and winter, and lasts 24 hours or more ( The New York Times, December 30th, 2024 ). A decade ago, it was not a problem: Europe obtained electricity from stable sources, namely nuclear power plants and fossil fuels. The situatio...

CONCLUSIONS

Chapter Eleven At the end of 1981, General Jaruzelski’s coup d’état in Poland had suddenly conjured up the spectre of Yalta in European and world politics. That new and dramatic freeze was the background to an outline in ‘Notebooks’ written between 1981 and 1982, a combination of political biography and record of a stage in the party’s history. Cervetto was marking the stage of his scientific achievement, the ‘true partition’ theory, and the Warsaw crisis was confirming, at the expense of the Polish proletariat, all the dishonour of Yalta, which only a minority had bitterly opposed, thanks to that same strategic vision. An entire library , commented Cervetto in Lotta Comunista , had been written about Yalta: it had taken only a day to show up the truth more clearly than years of research . Then followed a page that laid bare more clearly than any other why Yalta had been such a disgrace for the international proletariat: The truth about unitary imp...

The Counterrevolution of the Noske Era

Internationalism No. 86, April 2026 Page 9 From the series Pages from the history of the workers’ movement Revolution is a dramatic and oscillating historical process, marked by brutal accelerations, sudden freezes, and deceptive moments of dead calm. Hence the need to develop the party in the preceding years, so that it can act consciously as a vanguard rooted in the masses — as the premise for the revolutionary process rather than the result . Arrigo Cervetto wrote in his article “The General Task” , now in Opere, vol. 2 : If the party does not want to fall into adventurism, it cannot regulate its conduct on accelerated and unexpected movements but must always continue in its systematic work of organisation and education of the proletariat. The more the party is able to work according to this plan [...] the more it will have the possibility of not being caught off guard b...