This work was supported by the Academy of Korean Studies of the Republic of Korea in year 2012-2013 (AKS-2010-CAA-2101) Energy security has assumed newfound geopolitical importance at the outset of XXI century (Moran and Russell, 2008). Diminishing fossil fuel supplies have led to fears of energy shortages, while rapid economic and population growth have fuelled the demand for cheap, clean and secure sources of energy. The provision of reliable and affordable energy, once the domain of domestic policy, has emerged as a key concern of policymakers. To ensure energy security, leaders confront a complex set of economic, political, and environmental issues that transcend national boundaries. Should they fail to meet this challenge, energy is one of the few issues in todays international system with a distinct possibility to incite conflict between major powers. At the same time, trade in energy resources has the potential to usurp pre-existing economic or cultural ties and overcome deep-seated distrust to create new geopolitical alignments and alliances. JEL Classification : Q00
