210
US foreign policy will be able to exert significant influence on the international
arena even without global hegemony. Yet, Washington must accept that the world no
longer resembles the past; the stage is not the same as that of the 1990s and early
twenty-first century. That period of singular power is gone forever (www.foreignaffairs.com 2020a, b).
What US policymakers must do is plan for the new world order. If they maintain
the core of the American system, they can ensure that the US leads the most powerful military and economic coalition in a multi-power-centered world. To this end,
the United States bolsters its State Department, rebuilds its diplomatic resources,
and designs a plan to use them more effectively. Good statesmanship will allow for
navigation of the new world stage formed of competing interests and shifting alliances (www.foreignaffairs.com 2020a, b).
American Threats Against Iran Fuel Shipment to Venezuela
US Secretary of State Mike Pompeo threatened to confront the two countries after
the news of the export of Iranian gasoline to Venezuela was published. However, the
United States has so far taken no action to prevent Iranian oil tankers from passing
through and delivering fuel to Venezuela. The United States has threatened insurance and shipping companies and all companies cooperating with Iran and Venezuela
in this regard. Reuters quoted several officials affiliated with the Ministry of Oil as
well as the Revolutionary Guards as saying that the country would continue to
export gasoline to Venezuela (p.dw.com 2020a, b). The proximity of Tehran and
Caracas during a period of sanctions may be able to partially meet some of the economic and technical needs of the two countries, but until the sanctions are lifted, the
two countries will not be able to play an active role in the energy market. Sending a
shipment of gasoline to Venezuela and repairing the country’s refinery could have
temporary political and economic benefits for Iran. However, Iran should not be
expected to play an active role in energy equations unless foreign policy, especially
regional tensions, is on Tehran’s agenda and energy diplomacy is redefined (alaraby.
co.uk 2020).
S&P Global Platts Analytics shows that following a successful display over the
last gas winter, US LNG exports to Europe had dramatically reduced, even before
widespread cancelations due to the global pandemic hit. Poor economics regarding
US exports of the fuel appears to have damaged the viability of shipping to Europe.
As European natural gas hub prices are now below the US Henry Hub benchmark,
other Atlantic Basin exporters are now making approaches to interested parties in
Europe. Yamal sent its first summer cargo to Asia during May 2020, although data
reported by Platts Analytics also indicate that as many as five Yamal shipments had
the possibility to arrive in Europe before May delivery ended; Analysis also shows
that the US has identified Spain as a key target market, with the country receiving
half of the US shipments to Europe. This made up for the gap caused by a lack of
Russian and Qatari imports as those nations focused on sending exports to the UK
6 Trump Energy Diplomacy
US foreign policy will be able to exert significant influence on the international
arena even without global hegemony. Yet, Washington must accept that the world no
longer resembles the past; the stage is not the same as that of the 1990s and early
twenty-first century. That period of singular power is gone forever (www.foreignaffairs.com 2020a, b).
What US policymakers must do is plan for the new world order. If they maintain
the core of the American system, they can ensure that the US leads the most powerful military and economic coalition in a multi-power-centered world. To this end,
the United States bolsters its State Department, rebuilds its diplomatic resources,
and designs a plan to use them more effectively. Good statesmanship will allow for
navigation of the new world stage formed of competing interests and shifting alliances (www.foreignaffairs.com 2020a, b).
American Threats Against Iran Fuel Shipment to Venezuela
US Secretary of State Mike Pompeo threatened to confront the two countries after
the news of the export of Iranian gasoline to Venezuela was published. However, the
United States has so far taken no action to prevent Iranian oil tankers from passing
through and delivering fuel to Venezuela. The United States has threatened insurance and shipping companies and all companies cooperating with Iran and Venezuela
in this regard. Reuters quoted several officials affiliated with the Ministry of Oil as
well as the Revolutionary Guards as saying that the country would continue to
export gasoline to Venezuela (p.dw.com 2020a, b). The proximity of Tehran and
Caracas during a period of sanctions may be able to partially meet some of the economic and technical needs of the two countries, but until the sanctions are lifted, the
two countries will not be able to play an active role in the energy market. Sending a
shipment of gasoline to Venezuela and repairing the country’s refinery could have
temporary political and economic benefits for Iran. However, Iran should not be
expected to play an active role in energy equations unless foreign policy, especially
regional tensions, is on Tehran’s agenda and energy diplomacy is redefined (alaraby.
co.uk 2020).
S&P Global Platts Analytics shows that following a successful display over the
last gas winter, US LNG exports to Europe had dramatically reduced, even before
widespread cancelations due to the global pandemic hit. Poor economics regarding
US exports of the fuel appears to have damaged the viability of shipping to Europe.
As European natural gas hub prices are now below the US Henry Hub benchmark,
other Atlantic Basin exporters are now making approaches to interested parties in
Europe. Yamal sent its first summer cargo to Asia during May 2020, although data
reported by Platts Analytics also indicate that as many as five Yamal shipments had
the possibility to arrive in Europe before May delivery ended; Analysis also shows
that the US has identified Spain as a key target market, with the country receiving
half of the US shipments to Europe. This made up for the gap caused by a lack of
Russian and Qatari imports as those nations focused on sending exports to the UK
6 Trump Energy Diplomacy