Oil, Power, and Politics: How Energy Shapes the New World Order

• OPEC+ is a functional, if occasionally fragile, contraption that energy politics can be harnessed to achieve larger political ends.
• China is presenting itself as an energy superpower and a critical cog in the global energy supply chain by bankrolling energy projects in underdeveloped nations and locking in access to strategic resources.
• India still relies highly on imported oil to power its growing economy and such dependency renders India vulnerable to price fluctuations and geopolitical threats.
• Closing the gaps in energy supply will require policy reform and increased public-private investment, diversified supply chains and domestically sustainable manufacturing ecosystems.

Energy particularly oil, is the lifeblood of the global economy and a leverage point in geopolitical power in the 21st century. The delicate balance of power among leading oil suppliers, the coordinated actions of OPEC (Organization of the Petroleum Exporting Countries) and OPEC+, and the differing energy policies of China and India have not only determined how the markets behave but also rewritten geopolitics. This report tries to analyse the power of top oil players, the impact of OPEC, and OPEC+, and how conflicting national approaches, to energy security are shaping global geopolitics.

The Global Oil Landscape and Producer Clout

The world’s leading oil producers are at the centre of global energy geopolitics. The United States, Saudi Arabia, Russia and Brazil are major players when it comes to supply and prices. The U.S. shale revolution has redefined America as a dominant producer, upending traditional power centres and introducing new market volatilities. Saudi Arabia, the de facto head of O.P.E.C. for decades, wields its massive reserves and ability to produce at least as much as it needs to keep a stabilizing influence over prices. Russia, despite international sanctions and political prices, has been using its oil exports as a foreign policy tool, frequently getting in line with OPEC members to capture global supplies. Together, these producers dictate the terms for an industry in which even small production changes can cause ripple effects that affect the economy and politics. Their price-setting power has already proved to be not only an economic weapon but also a strategic weapon in international rule and war; Energy exports are fundamental to national budgets and can be weaponized to control rivals.

OPEC+ and Its Strategic Influence

OPEC+ is an alliance of traditional members of OPEC and several important non-OPEC producers such as Russia, that has become a dominant player in running and managing the world’s oil supply. By curtailing production cuts and agreeing quotas, the group seeks to align supply with demand, thus underpinning price levels that help sustain the revenues of oil-dependent economies. This kind of dynamic collective action is especially important when markets are stressed, and will help act as a countervailing force against the rising output we see coming from shale and other non-OPEC producers. But all is not harmonious within OPEC+. Divergent national interests, differences in cost structures, and differences in how dependent some states are on oil revenues sometimes cause friction within the alliance. Still, OPEC+ is a functional, if occasionally fragile, contraption that energy politics can be harnessed to achieve larger political ends.

China’s Dual Energy Strategy

China’s approach to energy security is a mix of aggressive investment in renewable energy and continued dependence on fossil fuels. China’s expertise in energy development is of particular global significance, considering its status as the world’s largest energy consumer and its rapid establishment of renewable capacity thanks to a raft of investments in wind, solar and nuclear projects. Even as these green bows are made, China still pours investment into oil and gas infrastructure and signs long-term supply contracts via programs such as the Belt and Road Initiative. These investments propel Chinese influence deep into foreign territory, establishing a web of energy dependencies that is too often a quiet lever of geopolitical muscle. China is presenting itself as an energy superpower and a critical cog in the global energy supply chain by bankrolling energy projects in underdeveloped nations and locking in access to strategic resources.

India’s Energy Vulnerabilities and Mitigation Strategies

India, in sharp contrast to China, still relies highly on imported oil to power its growing economy. Such dependency renders India vulnerable to price fluctuations and geopolitical threats, as shocks in international supply can immediately affect its economic viability. Aiming to reduce dependence on external energy sources, the Indian government has embarked on a multifaceted strategy, acknowledging these vulnerabilities. Those include the urgent development of domestic oil production, effective use of strategic petroleum reserves, and most significantly, investing in renewable energy-related projects to initiatives like “Make in India.” However, challenges persist, for instance: while solar capacity has increased considerably in India, as a country that wants to be self-reliant, it continues to import essential elements such as solar cells often from China. Closing these gaps will require policy reform and increased public-private investment, as well as regional cooperation to develop diversified supply chains and create resilient infrastructure, and domestically sustainable manufacturing ecosystems.

Conclusion

Energy wars are fought not just on battlefields but in boardrooms, at negotiating tables and through covert market manoeuvres. The power of leading oil producers and even the strategic thinking of OPEC+ illustrate how intertwined energy is with global balance-of-power politics. By contrast, China’s ambitious geopolitical energy investments stand in striking contrast to the precarious nature of India’s energy dependency revealing vastly differing paths toward the attainment of energy security. As the world navigates an increasingly complex energy transition, the interplay between traditional fossil fuels and emerging renewable technologies will continue to shape not only market outcomes but also the very fabric of international geopolitics.

References:

• _{AP. (2025, February 19). Brazil to join OPEC+, group of major oil-exporting nations.}
• _{Reuters. (2025, February 19). Goldman Sachs says it does not see Ukraine ceasefire boosting Russia output.}
• _{Reuters. (2025, February 17). OPEC+ is not considering delay to April oil supply hike, Novak says.}
• _{Reuters. (2024, December 10). India mandates use of locally-made solar cells in clean energy projects from June 2026.}
• _{Reuters. (2024, October 23). LNG-fuelled trucking accelerates in Asia, denting diesel demand.}
• _{Reuters. (2024, September 4). Only OPEC Can Stop the Oil Slide.}
• _{The Wall Street Journal. (2024, November 8). Tycoon Drives India’s Push Against China’s Solar-Energy Dominance.}
• _{The Wall Street Journal. (2024, December 12). IEA Lifts 2025 Oil-Demand Forecast but Expects Growth to Remain Subdued.}
• _{Reuters. (2024, November 20). OPEC+ may stick with deep oil cuts for longer due to weak demand.}

Shashank Pandey

Shashank is a Master’s student in Diplomacy, Law, and Business at O.P. Jindal Global University. He is also a researcher and coordinator at the Center for Global South and the Center for Southeast Asian Studies. His research interests include Southeast Asia, Chinese foreign policy, India’s Act East Policy, and global security dynamics. Views expressed are the author’s own.