The Global Gaming of Energy Supply and Pricing: Evidence and Implications for the Global Economy

By Lori Schneider and Samit Shrivastava.

Published by The Global Studies Journal

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

Two alternative schools of thought exist with regard to how the supply and pricing of energy commodities will respond to the current global economic downturn:
Energy prices will fall as economies cannot sustain demand.
Energy prices will hold, or continue to rise, despite the economic downturn due to a relatively inelastic demand for most energy commodities within developed and developing economies.
We suggest a third alternative -- that supply and price of energy is being, and will continue to be, gamed within pockets of the global economy. If these marketplace manipulations go unfettered, we face a potential “domino effect” of global risk implications:
Create a short-term shift in economic power from a handful of developed, service economies to a handful of developing, manufacturing economies; Create political and social turmoil in economies that suffer from this shift; and Further complicate the already-complex problems of political risk assessment, mitigation and financing since pockets of political risk (bribery, terrorism, war) could be expected to increase in number and geographic diversity as a result of the turmoil.

Keywords: Global Energy Crisis, Energy and the Global Economy, Economics and Politics, Economics, Energy and Global Risk, Gaming the Economy

Global Studies Journal, Volume 1, Issue 2, pp.35-38. Article: Print (Spiral Bound). Article: Electronic (PDF File; 502.054KB).

Dr. Lori Schneider

Assistant Professor, Department of Risk Management & Insurance, Robinson College of Business, Georgia State University, Atlanta, Georgia, USA

Lorilee A. Schneider is an Assistant Professor of Risk Management and Insurance in the Robinson College of Business at Georgia State University. Dr. Schneider received her B.S. in Commerce and Business from the University of Alabama in 1990 and her Ph.D. in Business from Georgia State University in 1995. Dr. Schneider’s current areas of research interest include corporate risk management decision making models, reputational risk assessment and strategy, political risk assessment and strategy, as well as global business ethics. She has presented numerous papers on these subjects to academic and industry groups.

Samit Shrivastava

Graduate Student, Department of Risk Management and Insurance, Robinson College of Business, Georgia State University, Atlanta, Georgia, USA

Samit Shrivastava has international experience in catastrophe modeling and disaster management. He has served as a key modeling engineer on several major projects conducted in India, the results of which assisted an international array of clientele. Mr. Shrivastava earned his Bachelor of Civil Engineering from the Bhilai Institute of Technology in 2000 and a Master of Earthquake Engineering from the Indian Institute of Technology in 2003. He is currently working toward a MBA from Georgia State University, with a concentration in risk management.

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