from Greenberg Center for Geoeconomic Studies

Energy Prices and Crisis Risks

March 2, 2016

Testimony
Testimony by CFR fellows and experts before Congress.

Robert Kahn testified before the Senate Committee on Foreign Relations, describing the crisis risks generated by persistently low oil and gas prices. He argued that the risks are especially acute for energy exporters such as Venezuela and Nigeria, and that such countries need sizable policy adjustments in the immediate future.

More on:

Americas

Global

Fossil Fuels

Economic Crises

 

 Takeaways:

  • Low oil prices are likely to be persistent. Many emerging market oil exporters drew on fiscal and asset buffers in 2015 to delay adjustment; as buffers diminish, it will be increasingly difficult to put off essential reforms.

  • The playbook for reform includes moving energy prices to world market levels, strengthening and better targeting the safety net, and putting macroeconomic policy on a sustainable footing. The IMF can play a vital role in support of these efforts, reinforcing U.S. strategic interests.

    More on:

    Americas

    Global

    Fossil Fuels

    Economic Crises

  • Venezuela is an economy on the edge. A default and economic crisis seem to be a question of when, not if. U.S. policymakers need to be planning now for a lead role in resolving the crisis, when Venezuela has a government willing to work with the West.   

Top Stories on CFR

United States

Each Friday, I look at what the presidential contenders are saying about foreign policy. This Week: Joe Biden doesn’t want one of America’s closest allies to buy a once iconic American company.

Immigration and Migration

Dara Lind, a senior fellow at the American Immigration Council, sits down with James M. Lindsay to discuss the record surge in migrants and asylum seekers crossing the U.S. southern border.

Center for Preventive Action

Every January, CFR’s annual Preventive Priorities Survey analyzes the conflicts most likely to occur in the year ahead and measures their potential impact. For the first time, the survey anticipates that this year, 2024, the United States will contend not only with a slew of global threats, but also a high risk of upheaval within its own borders. Is the country prepared for the eruption of election-related instability at home while wars continue to rage abroad?