The Political Influence of Oil - Essay Example

The Politics of Oil Introduction Oil has and continues to play a significant role in world politics, particularly in relations between the Middle East and western nations. Political tensions surfaced during the oil embargo in 1973. The immense power wielded by Arab nations was made apparent to both they and the west. Since that time, oil has been perceived by politicians and the public alike as being a substantial weapon in the hands of the Middle Eastern nations because they control the prices and the amount of oil exported; a reality which could cripple a nation as dependent on oil as the U.S. The threat of Middle Eastern nations hiking prices or turning the oil flow to the west off entirely has been like the ‘Sword of Damocles’ hanging over the collective heads of western nations. Many suggest that this threat, the power of oil-rich nations over oil-dependent nations is a farce, which is the position of this discussion, but perceptions regarding the power of oil being what they are, it is indeed a weapon that is still used today. Why oil made the relationship between the West and the Middle East tense? The Arab nations first wielded their weapon of oil in 1973 when they banded together to stop the supply of oil to western nations in protest of their political and military support of Israel (“The Arab Oil Embargo”, 2000). “Arab oil-producing countries wished to pressure the Western countries, specifically America into demanding that Israel withdraw their troops from the Arab territories that they had occupied since 1967” (Palmer, 1978: 871). The embargo was simply a strategic political tool. When the embargo was ended in 1974, the price of gas had quadrupled. Both Middle Eastern and western countries realized the economic, thus political, power of oil. The transfer of power was tremendous. “Third World nations discovered that their natural resources could be used as a weapon in both political and economical situations” (Palmer, 1978: 890). President Jimmy Carter characterized the embargo as “the moral equivalent of war” (Speigelman, 2000). This newfound stranglehold on the west was the foundation for the economic, political and social tensions that exist today. The degree to which oil has always been used as a strategic weapon. Oil has not successfully been used as a strategic weapon except in the minds of those that succumb to fear-based rhetoric. Oil cannot be easily utilized as a strategic tool for aggressive actions directed at western nations. Middle Eastern nations could withhold production thereby driving prices upward, but that would greatly jeopardize their economic circumstances. In addition, the actual influence that higher gas prices have on people is nominal. In the past quarter century, the percentage of income spent on energy consumption has actually fallen by two percent. While the poor are more adversely affected by higher gas prices, this issue is a domestic policy matter and not one of national security. The fluctuations of the price of oil have not significantly influenced the economy as a whole. The recent surge of gas prices did nothing to slow the economy, no stifling effects were felt. When the economy slows, high interest rates are generally the culprit. The economies of western nations are much too flexible to be destroyed by high gas prices. If oil prices were to rise for any reason, it would help move nations toward independence from foreign oil thus the long-term affect would clearly be positive for the western nations. “In an open society with a market economy, only high prices have the brute power to compel the adjustments required to address the real energy-related challenge facing us: global climate change. For this reason, the public should worry not that oil prices might climb again, but rather that they might continue to fall” (Auerswald, 2007). Is oil power no longer the force it once was? Though an increase in oil prices would actually be ultimately beneficial for western nations, the common perception of economic ruin as a result of looming political retributions by Middle Eastern nations remains. Therefore, these nations who are dependent of foreign oil continue to allow themselves to manipulated by oil-rich nations in the Middle East and elsewhere. Countries such as Venezuela, Russia and most prominently Iran had become increasingly aggressive in their political expressions and actions as they become increasingly economically independent. According to Richard Lugar, R-Ind, former Senate Foreign Relations Committee Chairman, “Oil is the new currency of foreign policy. Iran and Venezuela are not only less cooperative but almost gleeful that they are able to make trouble for us” (Slavin, 2005). Currently, the threat of higher oil prices has become more influential than ever because the western world is consuming and importing progressively greater amounts, the U.S. at the top of the list. The U.S. alone consumes 14 percent of the world’s supply. In less than a decade, Iran’s oil export revenues have quadrupled and not coincidentally, the nation has demonstrated an increasingly more confrontational approach to foreign policy and an open lack of compliance with United Nations regulations prohibiting nuclear arms programs. Because China imports much of its oil from Iran, it is expected to block any major U.N. sanctions. Oil is unquestionably not the political force it once was. Yet it has emboldened nations such as Iran to defy European nations and the U.S. because of their economic advantage. “With $25 billion in windfall oil profits this year, Iranians have been debating whether they really need the West” (Slavin, 2005). How far is it still true to speak of the existence of an oil weapon in the region. In a worst case scenario, Israel decides to expand its territory far into Palestine. As in 1973, Arab nations again band together and bowing to public sentiment, threaten to cut off the oil supply to the west even at their own potential economic demise. The mere threat of another oil embargo would send prices higher which would ultimately force oil importers to become less dependent on foreign oil. If gas were $5 per gallon or more, politicians would become very serious about implementing programs that promote alternative forms of energy. However, this entire scenario is highly improbable. Israel is unlikely to start gobbling up massive amounts of territory and even if it did, Arab nations would not likely repeat the ‘70’s oil embargo. According to Abdullah bin Hamad al-Attiyah, Qatar’s Oil Minister, “Politics need to be distanced from these prices” (Pellegrini, 2002). Oil revenues fund development projects vital to the growth of Middle Eastern nations. It is actually more in the oil producers’ interest to keep it flowing at a reasonable price than it is for western nations to be able to buy it at low prices (Pellegrini, 2002). Conclusion Oil has been used as a political weapon for more than 30 years but the real threat has always been the ample supply of oil, not the lack of it. Middle Eastern nations would have little political clout and would be forced to accept the will of the world if western nations’ economies did not depend on imported oil. Brazil has been energy independent for many years and does not import a drop of oil. If America and Europe followed this example, oil could never be used as a political weapon again. The world would be a safer place and the environment would benefit as well. Works Cited “(The) Arab Oil Embargo of 1973-74.” Arab Oil Embargo. (October 21, 2000). May 8, 2007 Auerswald, Philip E. “Calling an end to oil alarmism.” The Boston Globe. (January 23, 2007). May 8, 2007 Palmer R.R. A History of the Modern World. New York: Alfred A. Knopf, Inc., 1978. Pellegrini, Frank. “Oil’s Still Well With OPEC.” Time Magazine. (April 4, 2002). May 8, 2007 Slavin, Barbara. “Oil-rich countries tap into new political power.” USA Today. (October 9, 2005). May 8, 2007 Spigelman, Arthur. “Has America learned the energy lesson of 1973?” (October 11, 2000). May 8, 2007 Read More