Global energy market dynamics and natural gas development in the Eastern Mediterranean region

Abstract

This article discusses the development of Eastern Mediterranean natural gas resources in the context of global energy market dynamics. The focal point of this research is to apply Localization Theory through systematic attention on the mutual interaction between geographical proximity, regional relations, energy geopolitics, and economics to investigate the trade of natural gas. Eastern Mediterranean is a geopolitically important region endowed with natural gas resources. The realization of potential development options and achievements of desired results have been stranded by changing regional and global energy market and geopolitical dynamics, different policy approaches, and existing conflicts. In the current energy context, the global energy market structure is altering with the development of unconventional resources, falling demand, abundance in supply, changing pricing structure, and declining global energy infrastructure investments. The study revealed that decisions about the development of natural resources and export infrastructure are dependent on global energy market dynamics in conjunction with regional geopolitics. Regional cooperation and development of energy policies in line with the careful consideration of global energy market dynamics and energy geopolitics are suggested as the main path to shape the future of these processes. The study also revealed that development and monetization of the Eastern Mediterranean natural gas resources necessitate a pragmatic approach based on realistic expectations and the development of all-inclusive cooperative schemes. Joint development of regional natural gas resources under these cooperative schemes is likely to produce desired solutions for the energy development and monetization process and create economies of scale by keeping costs low.