The Politics of Oil. Strategic Resource and Fuel of Global Economy
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1 The Politics of Oil Strategic Resource and Fuel of Global Economy
2 Blood for Oil??? Is the war in Iraq really about oil and has less or little to with terrorism? Blood for Oil is a slogan of the peace movement and rallying cry against the current war.
3 Welcome to the Middle East
4
5 Opponents of the War and their slogans
6 One from South of the Border
7 Why is oil valuable? Important in production (goods, electricity) Important in transportation Important in other consumer goods or necessities (heat, etc.) Yet, what we mean by important is price and supply, which are of course related.
8 Strategic Resource A resource is deemed strategic when it is vital to an economy or military. This is why the US government keeps a reserve of oil large enough to supplement purchases in a crisis for a short period of time.
9 Oil is a fundamental issue of Geo- politics Focus of present and past foreign policy in the Persian Gulf Region. Containment of Iraq, but also fear of Iranian control over oil reserves. Previously concerned that the Soviet Union would invade the region and cripple the western democracies
10 Oil is a fundamental issue of Geo- politics American foreign policy also keeps Mexico and Venezuela in mind as important suppliers to USA. Other important oil areas: Western Africa (Nigeria, Gabon, Cameroon, Angola); Indonesia, Russia, Caucus Region, Canada, and of course, the Clampett s farm.
11 Oil in Past Wars Indonesian oil was a target of Japanese aggression in WWII Hitler coerced Rumania for oil WWII, also attacked Russia to eliminate communism but grab Russian resources like oil Saddam Hussein s s invasions of Iran ( ) 88) and Kuwait (1990).
12 Oil and Iraq Despite rhetoric about sovereignty, a huge motivation behind US rescue of Kuwait in Gulf War I was fear of Iraqi control of Middle East. If Kuwait was captured, why not rest of the Arabian peninsula of weak states? Continued focus on Iraq in 90 s s based largely on this concern, not terrorism or weapons of mass destruction.
13 Geopolitics Present and Near Future Other regions of the world have only begun to tap into their oil reserves because of lack of infrastructure or inhospitable climate/topography: Russia Caucus Region China
14 Geopolitics in South and Central Asia The USA is vying for influence with other countries to establish strategic/business relations with several countries that at first glance seem unimportant Oil pipeline through Afghanistan, Pakistan, and India
15 Geopolitics in South and Central Asia Other disputes over oil regions: Southeast Asia China vs. Indonesia vs. Malaysia vs. Philippines Nigeria vs. Cameroon Kurdish vs. other groups in Iraq over oil
16 Would you die for oil? As long as the US economy remains dependent on oil, you can bet that the stakes are high and the USA will protect the current system. What does the American public want? The public likely supports such policies but wouldn t t admit it. Instead, we fight as a country for Freedom, security, human rights, war on terrorism.
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18 Are you an addict?? To what extent would you allow a reduction in your quality of life through much higher energy prices?
19 A Global Addiction The global economy is addicted to oil and steep prices mean lower quality of life for developed countries and other consumers around the world. So yes, on some level the wars with Iraq have been about blood for oil, but it is less a conspiracy than a fact of American (western) life.
20 Why is the USA (world) addicted to oil? High standard of living depends on oil. Alternative technologies exist, but expensive unless introduced en masse. Lobbying by oil firms in support of new exploration, oil-based foreign policy, against alternative fuels, etc. The price of oil is cheap, cheap, cheap!!!! Cheaper than alternative fuels Use up foreign oil first??
21 Does this give you a sense of the volume of US demand for oil relative to world prices that Texas is becoming an oil importer?
22 Future for Oil Continued emphasis but shifting to other regions over time. The Arabian supplies will likely be gone in your lifetime. Implications for end of oil supplies: Lack of influence of Middle East Turn to alternative fuels, many of which exist but are expensive unless there is a full conversion. Less pollution? Less war in Middle East? Maybe not.
23 Other strategic resources Food supplies (dependency on foreign food is dangerous, thus one reason to protect farmers). Radioactive minerals (plutonium, uranium) Metallic minerals to lesser degree (copper, zinc, lead, iron), but some industries in this area protected or subsidized (steel, smelters)
24 The Next Most Vital Strategic Resource? Water??? This is becoming more a resource worth fighting over. Middle East Africa El Paso? (just joking, sort of)
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