Natural gas is seen as a suitable transition fuel to make the transition to more sustainable energy sources possible. However, domestic production in several countries is declining. This had led to...Show moreNatural gas is seen as a suitable transition fuel to make the transition to more sustainable energy sources possible. However, domestic production in several countries is declining. This had led to governments working on safeguarding their security of supply and therefore getting increasingly dependent on international projects. One of the international projects established to make up for the declining domestic production is the Nord Stream 2 pipeline. Several countries have however expressed their dissatisfaction on the pipeline and believe that the project is politically motivated. The discussion on the project has been on the forefront of international relations over the years. Many observers and scholars have written about the negative implications it could have. But despite the many negative views, some countries still participate. This thesis explores why the pipeline is economically and politically beneficial for the country that is directly connected to it: Germany. Germany has been focusing on promotion of investment and sustainable growth over the years. The energy transition is one of the most important factors with regard to this. In this specific case, the pipeline is predicted to provide gains for Germany as it helps with the transition. The government regards the pipeline as a purely commercial project, which plays an important role in safeguarding security of supply and in the energy transition in their case. The concerns risen by other countries are not considered a risk on a national level. Germany is able to act as a buffer between Europe and Russia, which it has always done throughout history and can therefore also mediate for third parties.Show less
Advanced master thesis | Political Science (Advanced Master)
open access
It is argued that host country factors have predictive value for the completion of Chinese investment in overseas oil and gas assets, as well as for the value of such deals. Using this thesis’...Show moreIt is argued that host country factors have predictive value for the completion of Chinese investment in overseas oil and gas assets, as well as for the value of such deals. Using this thesis’ unique dataset, which accounts for 198 states worldwide and the time period 1999-2012, four hypotheses are tested by performing ordered logit regression and Tobit regression analyses. Anticipating the results, the five main findings are presented here. For unambiguous interpretation, note that ‘Chinese investment’ refers to investment in overseas oil and gas assets. First, contrary to the impression obtained from media reports quoted above, Chinese investment is more likely to be accepted in states with institutional designs ranking higher in terms of institutional quality. Second, rentier states, whose leaders politically depend on the control over natural resources, do not take the expected defensive stance towards Chinese investments. Instead, a host country’s oil dependence is positively related to not only deal completion per se, but also to the amount of money invested. Gas dependence, on the other hand, is not significant in any of the models presented here. Third, Chinese investment is not only more likely, but also granted in higher volumes, in states that rank higher in terms of creditworthiness. Fourth, the financial crisis has provided all three Chinese investors - the NOCs, CDB, and CIC - with an opportunity to increase chances of deal completion as well as the amount invested. Fifth, separate analyses for Asia indicate that Chinese investment follows different patterns in its regional neighborhood, highlighting the need for further research to build on this thesis.Show less
