It is widely believed that only big powers, notably the United States and the Russia, can use their energy resources to achieve their strategic priorities, including their foreign policy goals. On the other hand, the conventional view is that energy-rich small states are unable to do the same because their policy choices will always reflect the demands and pressures of bigger and more powerful actors, rather than their own energy resources and revenues.
Such views can be traced back to the Cold War when small states had a limited capacity to move beyond reactive, involuntary, and short-term policies regardless of whether they had oil, gas, or any other natural resources.
While small states in today’s world remain vulnerable to the whims of larger regional and global powers, such thinking ignores the growing reality that many energy-rich small states increasingly view their resource endowments first and foremost as important instruments of national power at a time of instability, insecurity and disorder in the international system.
In part, this is because small states increasingly conceive of their energy resources as ways to add to their non-traditional sources of power, which include flexible manoeuvring, rapid institution building, and smart positioning. This, in turn, helps them to demonstrate value and sell a narrative in order to build resilience, consolidate political independence and distinguish their identity from neighbours and competitors.
An excellent example of this is the way that Qatar overcame the economic and diplomatic isolation it faced during the embargo of 2017-2020 by drawing on its innovative and long-term energy partnerships. The country’s long-time commitment to investing in co-operation that fosters interdependence in the international system became a key strategic instrument for Qatar during this time. This allowed the country to both sell a narrative and demonstrate value to two-dozen partners across four continents.
Another example is Norway’s Baltic Pipe project, which opened in 2022 with the mandate to transports gas from the Norwegian gas system in the North Sea to Poland and Denmark. Specifically, this was intended to create a new gas supply corridor in the European market as a way to contribute to European independence from Russian energy.
From the time of its launch, in the midst of the Russia-Ukraine war and a day after the Nord Stream pipeline explosion, Norwegian officials did not view this as an economic project but as a “strategic and important symbolic project”, as the country’s minister of petroleum and energy explained. In other words, the launch of this pipeline was used by Norway as a way to demonstrate value to Europe and to sell a narrative of the country as a key contributor to European security and stability in a time of upheaval and conflict.
Guyana, with oil production approaching a million barrels per day and GDP growth averaging 47% annually since 2022, is the fastest growing economy in the world in 2026. But apart from using its newfound energy resources for domestic economic development, this South American country has used its standing as a major energy player to increase its regional diplomatic influence.
It has also looked to sell a narrative of itself as an important partner in Western energy supply chains in response to the Ukraine war. Notably, in recent years this has resulted in some geopolitical victories for Guyana, including an energy security agreement with the United States and a seat on the UN Security Council as a temporary member.
Uruguay and Costa Rica are negligible oil and gas exporters, but both have used their green status, including their nearly fully decarbonised grids, to demonstrate value and sell a narrative around environmental leadership, clean energy infrastructure and sustainable finance.
Uruguay, for example, is the first recipient of a World Bank commercial green hydrogen loan. It has also consolidated its regional value by establishing itself as an important provider of clean electricity to pivotal regional states Argentina and Brazil. Costa Rica is the first country to secure LEAF Coalition climate financing support. It is also the co-founder of the High Ambition Coalition (HAC) for the “30 by 30” biodiversity target and a founder of the Beyond Oil and Gas Alliance (BOGA).
In all these cases, as well as many others not mentioned here, energy is used by small states to achieve their strategic objectives and influence other actors to take their interests into account. This allows small states to assert their independence and to resist attempts by bigger actors to impose their preferences on them. This deepens their capacity for resilience in a highly competitive and unstable wider-international system.
Acknowledging this enables us to go beyond the traditional and increasingly outdated view of small state energy producers as only being preoccupied with stable supply and demand, access and affordability, and the safe transit of energy products to consumer markets. It also allows us to stop thinking about the energy revenues of small states only in terms of providing the surplus financial resources required for economic development.
This underscores a key point. In a contemporary world in which actors of all sizes use of energy resources as part of their strategies, it is essential to better understand the interrelationship between energy resources and strategic decision-making in small states.
•The writer is professor of International Politics and director of the Small States and Energy Studies Programs at Georgetown Univeristy in Qatar @RoryDavidMiller