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42. Misperceiving U.S. Foreign Policy in the Gulf: Raising the Hidden Costs of U.S. Dependence on Oil
- Author:
- Steve A. Yetiv
- Publication Date:
- 01-2016
- Content Type:
- Journal Article
- Journal:
- Journal of International Affairs
- Institution:
- School of International and Public Affairs, Columbia University
- Abstract:
- United States foreign policy in the Middle East over the last few decades has been controversial and checkered, and Washington has certainly flexed its muscles in the region. However, the question arises as to how aggressive America has been with regard to oil in the region. I distinguish between two perspectives in how America is viewed, which we can simply call the offensive and defensive perspectives, recognizing that there is a continuum of views. From the offensive perspective, America is viewed as having one or more of these goals: steal or own Middle East oil; control Middle East oil in order to undermine Muslims; dominate Middle East oil to advance global hegemony; or exercise “puppet” control over oil producers like Saudi Arabia to coerce them into charging far lower oil prices than markets would warrant.1 By contrast, from the defensive perspective, America chiefly aims to prevent others from threatening oil supplies in a manner that would spike global oil prices and possibly cause a recession or depression. Muslim opinion polls have revealed that oil issues are a broader source of tension in relations between elements of the Muslim world and the West. The U.S. role in oil-related issues feeds into historical, political, and religious perspectives of an imperialist and power-hungry America. In fact, a not uncommon view in the Middle East is that America seeks to exploit, even steal the region’s oil resources, a viewpoint much in line with the offensive perspective described above. I argue that the history of America’s role in the region suggests that this is largely a misconception, and that this misconception is not immaterial. It seriously raises the cost of the use of oil and of American regional intervention. This misconception not only stokes terrorism and anti-Americanism, but also complicates America’s relations with Middle Eastern countries, affects its image among Muslims, and hurts its global leverage insofar as such views become internationally prominent. Indeed, it is almost a maxim in many capitals in the Middle East that close cooperation with Washington carries a domestic political cost. Recall, for example, that the Saudis were initially reluctant to host American forces after Iraq invaded Kuwait on August 2, 1990, even though they felt seriously threatened by Saddam Hussein.
- Topic:
- Foreign Policy, Energy Policy, Oil, and Military Strategy
- Political Geography:
- United States, Middle East, North America, and Persian Gulf
43. War and the Oil Price Cycle
- Author:
- Amy Myers and Jaffe Jareer Elass
- Publication Date:
- 01-2016
- Content Type:
- Journal Article
- Journal:
- Journal of International Affairs
- Institution:
- School of International and Public Affairs, Columbia University
- Abstract:
- Oil has shaped international conflict for decades. According to one estimate, twenty-five to fifty percent of interstate wars between 1973 and 2012 had oil-related linkages. 1 But the cyclical nature of oil’s contribution to global conflict is not well understood. Not only are oil prices cyclical, but the geopolitics of oil are linked inexorably to the same boom and bust price cycle. Military adventurism, proxy wars and regional pathologies in the Middle East expand and contract with the ebb and flow of massive petrodollar accumulations related to the oil price cycle. The massive inflow of petrodollar revenues when oil prices are high creates disposable incomes that can be easily dispensed on regional arms races, especially since oil consuming countries like the United States are incentivized to increase arms sales as a means of solving oil import related trade deficits. Besides transferring wealth from industrialized countries to oil producers in the Middle East and North African (MENA) region and Russia (and stimulating renewed drilling for oil and gas in North America), high global oil and natural gas prices also slow global economic growth and encourage energy conservation. This causes petroleum demand to slow globally, lowering oil prices. Social and political problems in the region reemerge as oil prices recede. Regional governments have fewer resources to spend on restive populations that have become accustomed to generous handouts enabled by high oil prices. Job creation and visible social programs slow, dissatisfaction rises, and the consequences of economic downturns incite support for militants. Ensuing instability forces governments to use newly purchased arms, which ironically begins the cycle yet again, as new conflicts disrupt oil supplies. In this manner, the world experiences perpetuating patterns of military conflict, followed by oil supply crises, and accompanying global financial instability. In effect, the Middle East resource curse has become globalized. The challenges this is presenting on humanitarian, security and economic fronts have become increasingly dangerous. The arms race that has accompanied the rise of oil prices over the 2000s has been no exception and is now all the more complicated due to the violent participation of sub-national radicalized groups that are less susceptible to diplomatic pressures or initiatives. In this emerging geopolitical context, the rise of violent subnational groups like ISIS and Al-Qaeda are increasingly putting oil infrastructure at risk, laying the groundwork for a future oil crisis that may prove harder to solve than in the past. As borders and ruling institutions have become contested, so has control of the region’s major oil and gas facilities. Initially an outgrowth of disunity inside Iraq, the conflict over oil and gas facilities is now accelerating across ungoverned territories, with important long-term consequences for global energy markets. Mideast oil and gas production capacity, along with surface facilities, are increasingly being damaged in ways that will make them hard to repair. Export disruptions, which were once sporadic, are becoming a more permanent feature of the civil war landscape. The level of destroyed capacity is currently estimated at about 2 million b/d and rising.2 The longer Mideast conflicts fester, the more that infrastructure could become at risk. There is an additional element to this oil and war story that links structurally with the oil boom and bust cycle. As oil prices recede, along with a decreased demand for oil and accelerating regional conflict, wealthy oil producers such as Saudi Arabia, the United Arab Emirates, and Kuwait, are often tempted to use large oil production capacity as a strategic asset. They flood the market with increased supplies in order to lower prices, thereby hurting geopolitical rivals. This price war strategy, which was notably present during the prolonged Soviet war in Afghanistan and the eight year Iran-Iraq War, temporarily ameliorates the short run effects of war on surface export facilities through excessive production rates. In addition, it lays the seeds for the future uptick in the oil market, by discouraging investment in future oil productive capacity outside the Middle East when prices are extremely low. In the case of the 2000s, the destruction caused by ISIS on the oil sector in many locations around the Middle East, combined with expected losses in investment in other parts of the world (like Canada’s oil sands and the Arctic due to current low oil prices), may be creating the conditions for a future oil supply crunch. This has major implications on U.S. policy. This article asserts that the United State would be, in light of these circumstances in the Middle East, unwise to dismantle its Strategic Petroleum Reserve (SPR) as has been suggested on Capitol Hill. It would be similarly unwise for the United States to lose focus on the importance of conservation efforts in the transportation sector which has both national security and climate benefits. The United States would benefit strategically from a reevaluation of its ban on oil exports. Finally, the United States should place a greater emphasis on conflict resolution in troubled states. By resolving internal conflicts over the distribution of oil revenues, the United States can better pave the way for long-term solutions whereby those same revenues can be integrated into national budgets in ways that brings economic prosperity to populations instead of rising military expenditure.
- Topic:
- Energy Policy, Oil, Military Strategy, Gas, and Conflict
- Political Geography:
- United States, Middle East, North America, and Persian Gulf
44. 2015 Symposium Sheds Light on Complexities of Shale Oil
- Author:
- Tareq Radi
- Publication Date:
- 04-2015
- Content Type:
- Special Report
- Institution:
- Center for Contemporary Arab Studies
- Abstract:
- This year’s symposium, entitled “An Energy Revolution? Political Ecologies of Shale Oil in the Middle East, US, and China,” set out to assess the political, economic, human, and environmental impacts of shale oil and its technologies of extractiong lobally, and particularly on the societies and economies of the MENA region.
- Topic:
- Energy Policy, Environment, Oil, Natural Resources, and Academia
- Political Geography:
- China, Middle East, and United States of America
45. Chinese Scholarship on Iran and the Middle East
- Author:
- Nadia Helmy
- Publication Date:
- 03-2014
- Content Type:
- Journal Article
- Journal:
- Iranian Review of Foreign Affairs
- Institution:
- Center for Strategic Research (CSR)
- Abstract:
- In the past three decades, Chinese Iranian and Middle East Studies have become more and more systematic, which is reflected not only in the great volume of publication, but also in the varied research methodologies and the increase in Iranian and Middle East academic journals. The development of Chinese Middle East studies have accelerated in particular after Arab Spring revolutions and the political changes in the Middle East (2000- 2013). Research institutes evolved from state-controlled propaganda offices into multi-dimensional academic and non-academic entities, including universities, research institutes, military institutions, government offices, overseas embassies and mass media. At the same time, publications evolved from providing an introduction and overview of Iran and Middle Eastern states to in-depth studies of Middle East politics and economics in three stages: beginnings (1949- 1978), growth (1979- 1999), and dealing with energy, religion, culture, society and security. The Middle East-related research programs' funding provided by provincial, ministerial and national authorities have increased and the quality of research has greatly improved. And finally, China has established, as well as joined, various academic institutions and NGOs, such as the Chinese Middle East Studies Association (CMESA), the Asian Middle East Studies Association (AMESA) and the Arabic Literature Studies Association (ALSA). However, Chinese Middle East Studies remain underdeveloped, both in comparison with China's American, European, and Japanese studies at home, and with Middle East studies in the West.
- Topic:
- Security, Energy Policy, Government, Politics, Religion, Culture, and Authoritarianism
- Political Geography:
- Japan, China, America, Europe, Iran, Middle East, and Arabia
46. Fueling a New Order? The New Geopolitical and Security Consequences of Energy
- Author:
- Bruce Jones, David Steven, and Emily O'Brien
- Publication Date:
- 04-2014
- Content Type:
- Working Paper
- Institution:
- Center on International Cooperation
- Abstract:
- On December 16, 2013, Prince Turki bin Faisal Al Saud, Saudi Arabia's powerful former intelligence chief, gave an interview to the Wall Street Journal. He was speaking out after a turbulent four months in Middle East and Persian Gulf diplomacy, diplomacy that culminated in an interim nuclear deal between Iran and the major powers. Prince Turki, long a close friend to the United States, used the interview to blast American policy. He was critical of U.S. strategy in the region as a whole, but particularly vehement about leaving Saudi Arabia out of the loop as the United States engaged in secret bilateral diplomacy with Iran. "How can you build trust when you keep secrets from what are supposed to be your closest allies?" he fumed.
- Topic:
- International Relations, Security, Economics, Energy Policy, International Trade and Finance, and Oil
- Political Geography:
- United States, Middle East, and Asia
47. Turkish-Iranian Rapprochement and the Future of European and Asian Energy
- Author:
- Pinar Dost-Niyego and Orhan Taner
- Publication Date:
- 04-2014
- Content Type:
- Policy Brief
- Institution:
- Atlantic Council
- Abstract:
- The recent events in Ukraine have revived the question of European dependence on Russian natural gas. The security of Europe's natural gas supply has been a consistently important issue in Russian-European Union (EU) relations. Russia provided 34 percent of EU gas in 2012, and Russian policies can have a direct impact on EU supplies. After the West-Russian confrontation over Ukraine, a lot has been said about the 'US shale gas revolution' and the possibilities of the United States becoming an energy exporter for future European energy needs. Although US energy independence seems to promise new perspectives for future European energy security, as well as for the balance of power in the Middle East, this is not for this decade. We cannot expect that the European Union would be able to cut off all of its energy relations with Russia, but we can foresee–or at least agree–that the European Union should diversify its natural gas supplies.
- Topic:
- Security, Foreign Policy, Economics, and Energy Policy
- Political Geography:
- Russia, United States, Europe, Ukraine, Middle East, and Asia
48. Easing US and EU Sanctions on Iran
- Author:
- Kenneth Katzman
- Publication Date:
- 06-2014
- Content Type:
- Policy Brief
- Institution:
- Atlantic Council
- Abstract:
- Since the seizure of US hostages in Iran following the 1979 revolution, the US government has imposed a succession of economic penalties against the Islamic Republic. The complexity and severity of these sanctions intensified following Iran's resumption of a uranium enrichment program in 2006. However, there are a variety of ways to provide extensive sanctions relief should there be a deal placing long-term restrictions on Iran's nuclear activities.
- Topic:
- Economics, Energy Policy, Nuclear Weapons, Sanctions, and Nuclear Power
- Political Geography:
- Europe, Iran, Middle East, and North America
49. Addressing the Food, Water, and Energy Nexus: Transatlantic Perspectives and Africa's Great Chance
- Author:
- Peter Engelke
- Publication Date:
- 12-2014
- Content Type:
- Working Paper
- Institution:
- Atlantic Council
- Abstract:
- This report explores how the relationships between food, water, and energy resources shape our world and its future, with emphasis on Africa and the transatlantic region. Called the food-water-energy “nexus,” the interdependencies between these resources are fundamental to all human endeavor on Earth. Understanding this nexus and managing it effectively is a critical challenge for policymakers and thought leaders in the transatlantic arena. Solving the challenges found on the African continent might present both the greatest task and the greatest reward. The potential pitfalls of failing to tackle Africa's foodwater- energy challenges are enormous, for Africans themselves and for all countries sharing the Atlantic Ocean space. But the potential downside is more than matched by the potential upside, and the gains to be had from solving nexus problems in Africa might prove as profound as any set of goals in the world.
- Topic:
- Development, Energy Policy, Water, and Food
- Political Geography:
- Africa, Middle East, and North Africa
50. Energy-hungry Turkey
- Author:
- Olgu Okumus
- Publication Date:
- 01-2014
- Content Type:
- Special Report
- Institution:
- Turkish Economic and Social Studies Foundation (TESEV)
- Abstract:
- Olgu Okumuş, a PhD candidate at SciencePo, deliberates on the issue of energy in Turkey due to Turkey’s aim of meeting its growing energy demand and being an energy transit hub. Okumuş discusses the advantages that the energy liberalization policies such as privatization and diversification of resources will bring to the country’s economy. In addition, she talks about the two main challenges of lowering energy pricing and carbon emission and put forth solutions for overcoming these challenges.
- Topic:
- Energy Policy, Privatization, Natural Resources, Governance, Economy, and Trade Liberalization
- Political Geography:
- Turkey and Middle East