Rene Alaniz

ECO 357L

"Energy: The Imperative For a Trilateral Approach"

J.C. Campbell, et.al., Trilateral Commission 1974

Main Point: The main point of this article is the growing energy crisis that confronts the nation of Western Europe, North America, and Japan. The growing crisis stems from the dependence of energy primarily oil from the Middle East. This dependence is influenced by various actions such as oil embargoes, cutbacks in production, and rising prices. The recommendation of the Trilateral Commission is the formation of a coalition of oil consuming nations. This coalition will use whatever means possible to combat the growing energy crisis.

 

  1. The Scope of the Problem: The Trilateral commission raises concerns about the growing energy crisis and how much we depend on something that is neither cheap or infinite(oil). The problem is magnified by Middle East Turmoil such as the war of October 1973. During that time the oil shocks and rising prices showed just how susceptible industrialized countries can be. Actions such as embargoes and shocks do not create the energy problem, but display more vividly the growing crisis.

    A)Economics: The Trilateral Commission breaks down the problem into two time periods. The first is for the next decade while the second runs from the end of the century and to the next. The belief is that the Trilateral countries as a group will continue to dependent on oil over the first period. That is why it important not to suffer a significant drop in supply of oil. Although the supply is subject to conditions that the Trilateral countries cannot control. The belief is that this dependence will be until 1985 presuming that non-OPEC will continue to develop alternative energy sources. Poilicies of OPEC countries will essentially determine the price of oil. The second period is the reduction of import requirements of oil into the Trilateral countries. Such reductions come from anticipated conservation of energy, efficient use of energy, and increased domestic production of energy.

    B)Politics: The involvement of the Trilateral countries is necessry for success in the energy crisis. The Trilateral countries and also less developed non -oil producing countries will be brought together by the effects of the energy crisis. Economic as well as social effects will be far reaching affecting countries all over the world. The greatest challenge lies in the relations among the developed countries within the Trilateral.

    C) Relative Positions of the Trilateral: The positioning each part of the Trilateral has at its disposal should be based energy resources, political and military influence, technological capabilities, and economic strength. North American position is strong with potential large natural resources and a very strong U.S. presence all over the world. Western Europe’s position is less appealing because it lacks natural resources and presence within the Middle East. While Japan has been developing other domestic energy sources its dependence on overseas supply is the greatest. It also has less political and military power than Western Europe.

  2. The Need for Cooperation: The Trilateral countries need to be able to move forward as a group to develop alternative energy outlets. This can only be done without conflicting agendas.
  1. Conservation and the Efficient Use of Energy: A plan must be devised by the consuming countries in order to establish guidelines for efficient use of energy. Goals must be set and planning and investment in new technologies must be implemented.
  2. Assurance of Adequate Supplies: The countries of the Trilateral will have to find a combination of bargaining power and mutual interest in order to keep adequate supplies from OPEC. Yet at the same time must be able to establish alternative resources within the Trilateral.
  3. Sharing in an Emergency: The Trilateral will need to be able to supply reserves in a time of an embargo. These reserves should be available in an emergency with certain conditions that apply. These conditions would constitute what an emergency is, how much to stock, emergency production plans, special conservation measures, and an allocation of supplies plan.
  4. Financial Impact: Supplementation of the banking system to meet the problems of consuming countries during increased oil prices. Which also include the international monetary and trade structure.
  5. Technology and Research: Trilateral countries will need to be able to work together sharing new innovations and technologies. Technology should be used to progress in efficient energy and the protection of the environment.
  1. Relations with other countries:
  1. Oil-Producing Countries: A countinuing relationship with oil producing countries should be sought after. This relationship should be one where both sides have a stake in and which each would not want to dissolve.
  2. The Solviet Union and China: The Solviet Union and China may be an option for supply of energy to the Trilateral. But the possibility falls short in diminishing the energy crisis.
  3. Developing Countries: Since the problem of rising oil prices threatens a number of developing countries aid should be given when needed and in the long run.
  1. Institutions: In being able to coordinate the plans involved to combat the energy crisis, institutions such O.E.C.D. should be created. This organization would be able to create policy and adapt to the changing circumstances.

V. Conclusion: The energy crisis is a problem which threatens the fundamentals of world order. The solution to the problem is being able to implement the strategies within and not just with foreign countries. Governments must be able to set foreign as well as domestic policies that benefit society as a whole in the future. People must be willing to sacrifice in order to eliminate this potentially long dilema.