This website uses cookies to ensure you have the best experience. Learn more

Geopolitics Of Oil Essay

1454 words - 6 pages


GEOPOLITICS OF OILWhoever commands the ocean commands the trade of the world, and whoever commands the trade of the world commands the riches of the world, and whoever is master of that commands the world itself(John Evelyn, 1674)Oil is the world's most important commodity. Without oil, today's industrial society would simply be impossible. Oil and natural gas are the fuel for the engine of modern capitalism. It is also by far the largest single commodity in international trade, and the oil industry is one of the largest and most international of all industries in the world. That is why it is important (Sepehri 2002). No other element has shaped the history of the past one hundred years so much as the fight to control the oil reserves of the world. The political and the economic power around oil have been shaped by the control of various influences.Most of the oil consumed in the world today has moved from one country to another. The companies themselves are exclusively US and Western European origin. But the crude oil is mostly concentrated in a small number of countries in the Middle East and Latin America, and was owned by the governments of those countries. One factor was the fact that the crude oil in these countries was incomparably cheaper than other sources of energy (Parra 2004).As far as the facts go, a majority of the oil producing nations are politically unstable or at opposing sides with the US. Many of such producers are members of the Organization of Petroleum Exporting Countries (OPEC). Gulf oil is also much cheaper to produce, making it much more profitable. Production costs for Persian Gulf OPEC nations are about $1.5 per barrel compared to about $4.5 in the U.S., $5.5 in Canada,$7 in the Caspian Sea, and as high as $10 a barrel in Russia. OPEC countries produce 40% of the world's oil and hold 80% of the proven oil reserves out of which, 85% are in the Middle East. Thus, the oil producing nations can be clubbed into two categories, those that suppress and those who can be suppressed. Thereby, it gives rise to geopolitics surrounding the supply of crude in the world.Beyond financing war, natural resources have been depicted as an important motive of several wars in the 1990s, from the Iraqi invasion of Kuwaiti oilfields, to civil wars fuelled by diamonds in West Africa (Le Billon, 2005). According to Engdahl (2005), oil is the central theme for countries to execute their policies. No matter the reason, oil can be traced back and be seen as one of the motive for countries. The attack on Iraq is reasoned by the United States as a humanitarian intervention to uphold human rights and stage a democratic country. In the event of a U.S. invasion, Iraq would become a vast source of cheap oil under U.S. control which could be used to undermine OPEC. At some 112 billion barrels, Iraq now has the second largest proven reserves in the world after Saudi Arabia's 265 billion barrels. And like all other Middle East oil, Iraqi oil is cheap...

Find Another Essay On Geopolitics of Oil

Security of Pipelines in Eurasia Essay

2148 words - 9 pages security and the implications it has on the Eurasian geopolitics, considering the spread of the United States presence in other countries. The U.S. involvement in so many conflicts involves energy security because “Concerns over energy security are not limited to oil. Power blackouts on both the East and West Coasts of the United States, in Europe, and in Russia, as well as chronic shortages of electric power in China, India, and other

“an Overview Of The Current And Future Importance Of Oil In The World In Terms Of Energy And Resources”

1536 words - 6 pages our environment that can bring about irreversible changes in our climate, the consequence of which are unknown!!!Since Oil is so important, countries are staging strategic alliances so as to be in a better position when oil wells of other countries run dry. Geopolitics will play an equal part in causing a supply shortage before an absolute geological peak. Such alliances can cause an imbalance and result in pure power play undermining environment

International Politics

2335 words - 9 pages The declaration that African development is hindered by internal and external factors is a challenged issue. To a greater extent, one may agree to this perception that Africa does not occupy an important position in terms of global geopolitics. However, this cannot be the only factor explaining Africa’s underdevelopment. Other factors such as many African countries being landlocked, poverty, weak regional integration, agricultural immobility

Early 20th Century Geopolitical Theories

2626 words - 11 pages Introduction Geopolitics has been a major obsession of nation-s¬tates throughout history and even today. The strategies that nation-states use to assert their position in relation to other states are complex and changing with the new nature of states and power in the World. Mackinder originally formulated one of the most crucial geopolitical models in order to capture the way in which states vie for power over space, which has seen renewed

The Impact of the Oil Crisis on the American Economy

5691 words - 23 pages , 6. Kaplan, D. E. (2000, October 2). Gotcha! U.S. News & World Report, 129, 10. Kumins, M. (2000, September 22). Richardson says proposals to alleviate oil crisis. States News Service Newsletter, 348, 6-7. Miller, W. H. (1998, January 19). Forgotten crisis. Industry Week, 247, Pp. 14. New Straits Times. (2000, October 5). Demand for electric cars. Pp. 59. OECD Observer. (1999, Summer). The changing face of energy geopolitics

Mosaddeq's Nationalization of Oil in Iran

642 words - 3 pages occupation of Hawaii, the building of the Panama canal, and the invasion of Iraq, pecuniary considerations go hand in hand with larger, more-compelling motivations of geopolitics. American and Soviet troops were staring each other down in Berlin; American and Korean troops were fighting in the icy mountains of Korea; and given the absolute essentiality of oil to industrial economies, Mosaddeq's nationalization of oil must have seemed to Washington and

Theoretical Perspectives on Iraq War 2003

2624 words - 11 pages global geopolitics and ideology of economic security, that invasion of Iraq must be understood. Multiple benefits of the Iraq war are as follows: By removing Saddam Hussein, U.S. issued a subtle warning to OPEC countries “not to flirt with the idea of abandoning Petrodollar System in favour of PetroEuro sytem”. This idea gained further prominence when post invasion, Iraq returned oil sales from the euro to the US dollar. Besides, in a post-Fordist

An Analysis of the Outbreak of the Iran-Iraq War

796 words - 4 pages show that Iraq was determined to stand up for itself. This conflict wasn't completely about the direct control of oil production in the Gulf but rather the power to heavily influence an increase or decrease in production as well as in a regional context. As noted earlier, even though Iran produced and exported more oil than Iraq (MERIP Reports, 1984, p. 41), other nations such as Saudi Arabia were increasing their oil production capabilities and

Colonialism and Oppression in the African Diaspora

1048 words - 5 pages take advantage of native African communities. The researcher, Tomas Profant, explores some of the economic aspects of this disparity in his 2010 article, “French Geopolitics in Africa: From Neocolonialism to Identity.” Profant points out that even though decades have passed since French decolonization, Africa has remained the nation’s most important supplier of raw materials. The French atomic project acquired nearly all of its uranium

Cartel Theory

1454 words - 6 pages ). "Strategies for OPEC's Pricing and Output Decisions," The Energy Journal 16(3): 1-38.Mitchell, John V., with Koji Morita, Norman Selley, and Jonathan Stem (2007). The New Economy of Oil: Impacts on Business, Geopolitics and Society. London: The Royal Institute of International Affairs.Pindyck, Robert S. (2007) "Cartel Pricing and the Structure of the World Oil Market," The Bell Journal of Economics, 8.

An Analysis of the Outbreak of the Iran-Iraq War

1124 words - 5 pages greatest oil producing region. In exchange for Iranian support in ending the revolt, Iraq gave up a large part of the vital waterway. Saddam Hussein, the chief Iraqi negotiator aimed to change this upon becoming president and saw an opportunity when due to the Revolution, the military was purged and the economy paralyzed. This meat that the invasion was a way of restoring national pride and recover ceded territory. 3. The abrogation of the treaty by

Similar Essays

Geopolitics Of Oil Essay

1454 words - 6 pages 4 GEOPOLITICS OF OILWhoever commands the ocean commands the trade of the world, and whoever commands the trade of the world commands the riches of the world, and whoever is master of that commands the world itself(John Evelyn, 1674)Oil is the world's most important commodity. Without oil, today's industrial society would simply be impossible. Oil and natural gas are the fuel for the engine of modern capitalism. It is also by far the largest

Overview Of Geopolitics Essay

1906 words - 8 pages companies venture far into large international projects along the oil and gas supply chain. Geopolitics is the study of the effects of geography (both human and physical) on international politics and international relations or the method of foreign policy analysis which seeks to understand, explain, and predict international political behavior primarily in terms of geographical variables. One important geopolitical consequence of shifts in

Chevron And Oil Trade Dominance Essay

2360 words - 9 pages ." SFGate. Web. 21 May 2014. "ChevronToxico | Environmental Impacts." ChevronToxico. Web. 20 May 2014. "From the Silk Road to Chevron:The Geopolitics of Oil Pipelines in Central Asiaby James Fishelson." The Geopolitics of Oil Pipelines in Central Asia. Web. 21 May 2014. Gerken, James. "In Ecuador Pollution Case, New York Judge Rules For Chevron." The Huffington Post., 04 Mar. 2014. Web. 20 May 2014. "Gulf Oil Acquires Brand

The Bi Polar World Order Essay

2134 words - 9 pages variety of international relations within the single pattern”, over its course (Ibid). Therefore, questioning whether the geopolitics of the Cold War had been adequately captured in the term “The bi-polar world order”. With the “relative decline” of the super powers in the end 1960s, disruptions within the single pattern started to materialize (Ibid, p.55). The beginning of the Détente was marked with the Third World’s gradual building of political