The New Map by Daniel Yergin

The New Map by Daniel Yergin is a book on Energy, Climate and the Clash of Nations. The book has been recently published in 2020 by Penguin Random House and covers the fascinating intersection of energy, energy transition, the intersection of the Big Three - the US, Russia and China, geopolitics and  technology. Daniel Yergin is a Pulitzer Prize winning author and expert on the Energy Industry. This is third book of Daniel that I have read besides The Prize - A phenomenally interesting book and The Quest, a book I found much less engaging than the Prize. Daniel is also the Vice Chair at IHS Markit, one of the world's most established energy research houses, a senior trustee at Brookings Institute and has been closely associated with US Energy Policies across both Democrat and Republican administrations. 

The initial few chapters are devoted to the Big Three and their respective energy and geopolitical maps. 

For the US the key theme is the emergence of Shale Oil and Gas and the ability of the US and North American continent to become a major energy player and exporter, something that was unthinkable a few decades ago. The role of innovation, determination, burgeoning private sector and deep financial markets demonstrates how a country can radically transform its bargaining position and disrupt an established order namely OPEC to its advantage. The Shale revolution gave the US a fantastic set of cards to play with that have wide reaching consequences for the rest of the world.  

Energy and Russia have been inextricably linked for more than a century now. One of the largest energy producers, the Russian State and the energy industry are closely intertwined and lines are blurred between the use of energy to secure economic gains or score political wins. Russia's dominant energy position has enabled it to play an outsized role in impacting European and Middle Eastern political and economic systems and now increasingly in Asia as it pivots to new markets to counterbalance a dependence on Europe for selling its energy. 

And there is China. Whilst the US and Russia have been energy and geopolitical heavyweights for generations, there is the new elephant (or dragon) in the room and that is China. With its meteoric rise driven by a hyper scaled manufacturing base, essentially the workshop of the world, China has an outsized role in modern energy markets. Along with that comes the paranoia of being a massive energy importer as energy is fundamental to its development and establishment as a key geopolitical power. Chapters cover the key energy choke points, South China Sea, Belt and Road Initiative, China Trade and Commerce and the rise of Chinese nationalism, self confidence and modernisation impact of its armed forces.   

When we think of maps and energy our minds are immediately drawn to the Middle East. The book devotes considerable pages towards the historical settings that created the modern Middle Eastern map. The book covers all the key issues namely, Iran, Iraq, the house of Saudi Arabia, Gulf Wars, Arab Nationalism, Islamic Fundamentalism, Arab Spring Revolutions, Proxy Wars including the Sunni Shia divide, Syria, Libya, Yemen, Eastern Med and their future in a world that is less oil dependent. Considerable detail has been spent trying to provide the reader with valuable insight and context into very important considerations that shape a key energy region which is highly unstable and subject to rapidly changing developments. 

The map of energy has to include the map of the future. The primary demand for oil is transportation hence understanding the evolution of the EV market is fundamental. Three key forces are discussed including electrification of the car (rise of Tesla etc), self driving cars and 'servicization' of the car due to the likes of Uber via technology.  

The book ends appropriately with the 'Climate Map'. A super critical chapter on a pressing issue namely the Climate Crisis. As we push for more energy to grow our economies we need to balance that with the danger of GHG emissions and the impact on climate. The demand for electricity will continue to rise and with that pressure to switch from coal to gas to renewables. These forces are swiftly unfolding as I write this review and every country is working towards growing its power generation base but increasing renewables in the power mix. To compound matters, there is a huge divide between developed and developing countries when it comes to the energy transition with valid arguments on both divides. 

The book is a spectacular read and covers all the key issues that impact the world today in particular the energy world. The book has gone into sufficient detail across many key developments and provided the appropriate historical and political contexts. This is vital as the energy world as we see it today is not just a function of the energy industry but has immensely been shaped by the arc of history and geopolitics. The next stop is to go the IHS Markit portal and download the articles that are referenced across the book to get a more complete picture. Daniel Yergin has once again demonstrated excellent knowledge of this industry and the book I dare say is a must read!

https://www.amazon.com/New-Map-Energy-Climate-Nations/dp/B086DLRRLT