Geopolitical highways: how pipelines drive power and profit

Pipelines are more than just infrastructure; they are the lifeblood of global power. Stretching across continents, these intricate networks transport the oil and gas that fuel economies, sustain industries, and shape the very foundation of modern civilization. Their presence is not just about energy flow but about control, the ability to influence markets, dictate terms and shape international relations. For centuries, access to and control over energy resources has been a key determinant of a nation’s geopolitical influence and economic prosperity.

In today’s world, pipelines are among the most valuable and contested assets in geopolitics. They are not just vital to domestic energy security but also serve as strategic tools that affect global alliances, trade routes, and even military strategy. The ability to control or disrupt energy supply routes can alter the balance of power on the world stage, as nations vie for dominance in securing their access to these underground arteries.

Pipelines as strategic assets

In an ideal world, nations would be energy self-sufficient. But in reality, few countries can meet their own energy needs. This dependence creates a web of supply chains that makes energy security a matter of political strategy rather than just economic necessity. Europe, for example, imports 85-90% of its oil and a significant portion of its natural gas, making it vulnerable to disruptions in supply.¹

Unlike liquefied natural gas (LNG), which is transported by ship and can be rerouted, pipelines offer a constant, affordable, and committed energy flow. While LNG is the preferred solution for long-distance, cross-ocean transport, pipelines remain the most efficient and cost-effective option for delivering gas to closer markets.² This makes them both a reliable asset and a geopolitical bargaining chip. Whoever controls the pipelines can dictate terms, influence energy prices, and, in some cases, even weaponize supply to achieve political goals.

Russia, Ukraine, and Europe’s energy dependence

Few regions illustrate the strategic importance of pipelines better than Europe’s relationship with Russia. The continent is crisscrossed with over 200,000 kilometers of pipelines, many of which originate in Russian gas fields and pass through Ukraine before reaching European markets.³ This transit role made Ukraine not just a consumer but also a crucial player in the energy trade.

Before the 2014 conflict, Ukraine earned billions in transit fees from Russian gas exports. However, as tensions escalated, Russia sought to bypass Ukraine by building alternative routes like Nord Stream 1 and 2 under the Baltic Sea, as well as TurkStream to the south.⁴ By reducing Ukraine’s role as a transit state, Russia weakened its economy and bargaining position.

The Russian invasion of Ukraine in 2022 significantly intensified the energy conflict. Sanctions, supply cuts, and Europe’s gradual withdrawal from Russian gas have forced countries to urgently seek alternatives.⁵ However, overcoming decades of dependency on pipelines is a complex and costly process that will not be resolved quickly.

As of December 31, 2024, Russian gas exports through Ukraine have come to a complete stop. Kyiv refused to renew its transit agreement with Gazprom, with President Zelensky declaring that Ukraine would not let Russia “earn additional billions on our blood.”⁶ This move not only signals a shift in Ukraine's strategic priorities but also underscores the broader geopolitical realignment occurring in Europe’s energy landscape.

The disruption was expected to cause massive shortages and soaring prices across Europe. However, the crisis never fully materialized. Europe, once reliant on Russian gas, adapted quickly. LNG imports from the U.S., Qatar, and Australia surged, storage levels stayed high, and renewable energy expansion continued.⁷ Rather than collapsing under pressure, the continent proved its ability to pivot, reshaping its energy landscape faster than many had predicted.

Russia’s dominance in the European gas market has weakened, perhaps permanently. What was once a powerful geopolitical weapon is now a diminished bargaining chip. But energy security remains fragile; pipelines, supply chains, and geopolitics will continue to shape Europe’s future.

The battle for energy control in the Black Sea

Beyond pipelines, the Black Sea holds vast untapped energy reserves. Eastern Ukraine contains significant shale gas deposits, and Crimea’s annexation in 2014 was not just about history or politics; it was also about controlling valuable offshore oil and gas fields.⁸ By claiming Crimea, Russia secured access to maritime territories rich in resources and further solidified its grip over the region’s energy future.

Control over energy corridors is not just about supply; it is about leverage. By holding the keys to Europe’s energy needs, Russia has repeatedly used gas as a political weapon, cutting off supplies to countries that challenge its influence. This strategy has made energy security a top priority for the European Union.

Europe’s search for alternatives

Europe’s dependence on Russian energy has been a longstanding issue, but recent crises have made it more urgent than ever to find alternatives. The search for new energy sources is already underway, yet each option brings its own set of challenges, from infrastructure issues to political complications.

LNG shipments from the United States, Qatar, and Australia offer a backup, but they are expensive and need special infrastructure. North African pipelines bring in gas from Algeria and Libya, but political instability in the region makes them unreliable.⁹ Renewables and nuclear power could be long-term solutions, but they take time and massive investment to scale.

Despite these efforts, breaking free from fossil fuel imports is not easy. For now, pipelines remain the backbone of Europe’s energy supply and a key player in global power struggles. Their control provides significant political leverage, making them crucial to Europe’s energy security and geopolitical influence.

The future of pipelines in a changing world

The world’s energy landscape is shifting. As countries push toward renewable energy and energy independence, the role of pipelines may change. But for now, they remain at the center of global power struggles. Whether it is the controversy surrounding Nord Stream 2, the rivalry between Russia and Ukraine, or the growing influence of new suppliers, pipelines continue to shape economies, alliances, and conflicts.

As long as energy remains the lifeblood of modern civilization, pipelines will retain their status as some of the most valuable and contested assets in global politics. The intricate web of pipelines, trade routes, and energy policies ensures that these infrastructures will remain pivotal in both regional and international power struggles for years to come.