Contrary to traditional assumptions that only major powers like the United States and Russia can leverage their energy resources to advance strategic and foreign policy objectives, recent developments suggest that smaller energy-rich states are increasingly capable of doing so as well. Historically, during the Cold War and beyond, small states were often seen as limited to reactive and short-term policies, heavily influenced by the demands of more powerful actors. However, this perspective is evolving amid an international system marked by instability and disorder, where small states are using energy resources as instruments of national power.
Modern small states are adopting strategies that extend beyond conventional resource management. They incorporate non-traditional forms of influence, including institutional agility, diplomatic flexibility, and smart positioning to enhance their national independence and regional profiles. These approaches enable them to carve out distinct identities and build resilience in a complex geopolitical landscape.
Qatar provides a notable example of this shift. During the economic and diplomatic blockade imposed from 2017 to 2020, Qatar leveraged its long-term energy partnerships and investments to sustain its international relationships. By fostering interdependence with partners across multiple continents, Qatar managed to reinforce its political autonomy and narrative of value, despite attempts at isolation.
Another case is Norway’s Baltic Pipe project, which started operating in 2022 to transport gas from Norway’s North Sea facilities to Poland and Denmark. Initiated amid the Russia-Ukraine conflict and following the Nord Stream pipeline explosion, the project was framed by Norwegian officials not merely as a commercial venture but as a strategic and symbolic statement. It underscored Norway’s role in enhancing European energy security and substituting Russian supplies, affirming Norway’s significance in regional stability.
In South America, Guyana has experienced rapid economic growth fueled by its oil production, approaching one million barrels per day. Beyond domestic development, Guyana has capitalized on its growing energy status to expand its diplomatic influence at the regional and global levels. Its partnerships, including an energy security agreement with the United States and a temporary seat on the UN Security Council, reflect its efforts to position itself as a key contributor to Western energy supplies amid the geopolitical fallout from the Ukraine war.
Additionally, countries like Uruguay and Costa Rica, despite minimal oil and gas exports, have used their status as leaders in clean energy and decarbonized power grids to assert influence through environmental diplomacy. Their focus on sustainable energy and finance provides an alternative model for small states to project value internationally.
These examples challenge the outdated notion that small energy-producing states are limited to managing supply, demand, and transit security, or using energy revenues solely for economic development. Instead, energy resources can form a critical component of strategic decision-making, enabling small states to resist external pressures and assert political independence. Understanding how energy intersects with strategic objectives in smaller states is increasingly essential in today's diverse and competitive global order.
