how does oil change politics

How did Oil change the How did Oil change the course of international course of international

politics of the 20politics of the 20thth Century? Century?

US OIL DEPENDENCEUS OIL DEPENDENCE

Foreign and Domestic Foreign and Domestic Policy Policy

Source: Source: http://upload.wikimedia.org/wihttp://upload.wikimedia.org/wikipedia/commons/3/37/US_Enkipedia/commons/3/37/US_Energy_Consumption_by_Sourceergy_Consumption_by_Source_2007.PNG_2007.PNG

Source:Source:http://en.wikipedia.org/wiki/http://en.wikipedia.org/wiki/File:US_Oil_Production_and_IFile:US_Oil_Production_and_Imports_1920_to_2005.pngmports_1920_to_2005.png

STRATEGIES TO DECREASE STRATEGIES TO DECREASE DEPENDENCE DEPENDENCE

Exploring and drilling for Exploring and drilling for new oil fieldsnew oil fields

Arctic National Wildlife Refuge (ANWR) which Arctic National Wildlife Refuge (ANWR) which supposedly contained on of the largest supposedly contained on of the largest unexplored productive geologic basins in the unexplored productive geologic basins in the US. However, after a report saying that there is US. However, after a report saying that there is probably 10.3 billions barrels of oil technically probably 10.3 billions barrels of oil technically recoverable in ANWR, drilling was planned to recoverable in ANWR, drilling was planned to start in 2010.start in 2010.

CONSTRAINTSCONSTRAINTS

1) the speed and magnitude of oil 1) the speed and magnitude of oil production in ANWR, the gulf and Mexico production in ANWR, the gulf and Mexico and other geologically complex reservoirs. and other geologically complex reservoirs.

2) It is cheaper to produce in foreign 2) It is cheaper to produce in foreign places (such as the Persian Gulf) then do it places (such as the Persian Gulf) then do it in the US. in the US.

3) Many environmentalists are against 3) Many environmentalists are against drilling in potentially rich areas in the US drilling in potentially rich areas in the US because of the environmental implications.because of the environmental implications.

PERSIAN GULFPERSIAN GULF

1) It holds more resources than any 1) It holds more resources than any other producers, for example in 2000, it other producers, for example in 2000, it was proven that the Gulf a reserve of was proven that the Gulf a reserve of 672 billions of barrels of oil. 672 billions of barrels of oil.

2) Oil can be extracted from the Gulf at 2) Oil can be extracted from the Gulf at a lower cost than other sites.a lower cost than other sites.

3) Located near international markets.3) Located near international markets.

Net oil imports from the Net oil imports from the Persian Gulf RegionPersian Gulf Region

GLOBAL ENERGY SCENEGLOBAL ENERGY SCENE

EU; RUSSIAEU; RUSSIA

The EU is the second greatest The EU is the second greatest consumer after the US. The oil gap consumer after the US. The oil gap between production and consumption between production and consumption in the EU is larger than that in the US, in the EU is larger than that in the US, particularly when Europeparticularly when Europe’’s poor s poor reserves are taken into consideration.reserves are taken into consideration.

European UnionEuropean Union

IrelandIreland ItalyItaly LuxembourgLuxembourg NetherlandsNetherlands PortugalPortugal SpainSpain SwedenSweden UKUK

AustriaAustria BelgiumBelgium DenmarkDenmark FinlandFinland FranceFrance GermanyGermany GreeceGreece

EUROPEAN UNIONEUROPEAN UNION

GULFGULF COOPERATION COOPERATION COUCOUNCILNCILBahrainBahrainKuwaitKuwaitOmanOmanQatarQatar

Saudi ArabiaSaudi ArabiaUnUnited Arabs Emiratited Arabs Emirateses

In order to make the Russian Oil industry In order to make the Russian Oil industry more competitive and more attractive to more competitive and more attractive to foreign investor, Russia has created an foreign investor, Russia has created an energy partnership with Western Europe; energy partnership with Western Europe; the Energy Charter Treaty, signed in the Energy Charter Treaty, signed in Lisbon in Dec 1994. Lisbon in Dec 1994.

RUSSIARUSSIA

BALTIC PIPELINE SYSTEMBALTIC PIPELINE SYSTEM

OECD (OECD (Organization for Organization for economic economic

cooperation and developmentcooperation and development ) ) http://www.mapsofworld.com/images/world-http://www.mapsofworld.com/images/world-oecd-member-country-map.gifoecd-member-country-map.gif

IEA

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OIL DEPENDENCE AS A OIL DEPENDENCE AS A MATTER OF NATIONAL MATTER OF NATIONAL

SECURITYSECURITY

- Effect of Oil Crisis- Effect of Oil Crisis

- Gulf War- Gulf War

- Caspian Sea- Caspian Sea

- Iraq War- Iraq War

- Middle East and Saudi Arabia- Middle East and Saudi Arabia

CommunicationCommunicationss

EconomyEconomy AgricultureAgriculture International International

RelationsRelations Domestic PolicyDomestic Policy TransportationTransportation

Effect of Oil Crisis on…Effect of Oil Crisis on…

PERSIAN GULFPERSIAN GULF

http://upload.wikimedia.org/wikipedia/http://upload.wikimedia.org/wikipedia/commons/0/0d/Persian_Gulf_map.pngcommons/0/0d/Persian_Gulf_map.png

CASPIAN SEACASPIAN SEA

http://geology.com/records/http://geology.com/records/caspian-sea.gifcaspian-sea.gif

Foreign Policy and Oil Foreign Policy and Oil - Iran and China and - Iran and China and Soviet Union – Soviet Union – Nuclear Sanctions Nuclear Sanctions and trade relations.and trade relations.

- China and Sudan- China and Sudan

- Israel and US- Israel and US

- Venezuela and US – - Venezuela and US – Hugo ChavezHugo Chavez

- Algeria and US- Algeria and US

Foreign Policy on Oil :

The Run-down

Iran, China, and the Soviet Iran, China, and the Soviet UnionUnion

Regarding trade relations nuclear sanctionsRegarding trade relations nuclear sanctions

Iran, China, and the Soviet Iran, China, and the Soviet UnionUnion

Regarding trade relations nuclear sanctionsRegarding trade relations nuclear sanctions

Political pressure over the arms race: the US wants Political pressure over the arms race: the US wants Iran to stop the development of its nuclear program, Iran to stop the development of its nuclear program, accusing Iran of producing nuclear weaponsaccusing Iran of producing nuclear weapons

However, China with its status and veto power in However, China with its status and veto power in the UN defies the US by defending Iran, as they are the UN defies the US by defending Iran, as they are close alliesclose allies

In the past, Russia did not necessarily oppose Iran’s In the past, Russia did not necessarily oppose Iran’s nuclear program; as Russia has come to depend nuclear program; as Russia has come to depend more on its trade relations with the US, however, it more on its trade relations with the US, however, it has more recently withdrawn its support of Iran, has more recently withdrawn its support of Iran, which the US takes to be agreement with their which the US takes to be agreement with their policy on the Iranian nuclear programpolicy on the Iranian nuclear program

Caspian Sea Dispute

China and SudanChina and SudanAssaults in the name of oilAssaults in the name of oil

China and Sudan are close trading China and Sudan are close trading partnerspartners

China has been supplying arms and China has been supplying arms and technology to Sudantechnology to Sudan

China opts for inaction faced with the China opts for inaction faced with the issue of the war in Darfurissue of the war in Darfur

The United States and IsraelThe United States and IsraelThe Arab embargo on oilThe Arab embargo on oil

Notable Arab-Israeli conflicts:Notable Arab-Israeli conflicts: The Six-Day War (1967)The Six-Day War (1967) The Yom Kippur War (1973)The Yom Kippur War (1973) By 1973, the prices for oil had been By 1973, the prices for oil had been

largely destabilized by the shifting of largely destabilized by the shifting of the value of US currency and the wars the value of US currency and the wars fought by the Arab nations – the OPEC fought by the Arab nations – the OPEC was slow to adjust their prices, and was slow to adjust their prices, and this period was dubbed an “oil crisis”this period was dubbed an “oil crisis”

The Arab-Israeli conflicts

The Arab-Israeli conflicts

The United States and IsraelThe United States and IsraelThe Arab embargo on oilThe Arab embargo on oil

The Arab embargo on the US was The Arab embargo on the US was soon after liftedsoon after lifted

Consequences: search for alternative Consequences: search for alternative energy, destabilization of oil-energy, destabilization of oil-dependent economies (e.g. Canada), dependent economies (e.g. Canada), solidification of the concept of “oil solidification of the concept of “oil weapon” (control of oil = control of weapon” (control of oil = control of power)power)

Venezuela and the USVenezuela and the US

Venezuela Venezuela controls notable controls notable deposits of crude deposits of crude oil and is a key oil and is a key member of OPECmember of OPEC

• The inauguration of socialist Venezuelan President Hugo Chavez meant the “forcing out” of US control in Venezuelan oil companies

HUGO HUGO CHAVEZCHAVEZ

Venezuela Venezuela and the USand the US

Despite the loss of their diplomatic Despite the loss of their diplomatic relations, both states remained relations, both states remained important trade partnersimportant trade partners

Algeria and the USAlgeria and the US

Algeria supports the US in Algeria supports the US in international affairs as the US in turn international affairs as the US in turn supports it through trade and aidsupports it through trade and aid

(General) Characteristic relationship (General) Characteristic relationship between the US and a Third World between the US and a Third World countrycountry

Oil as a Oil as a Political Political WeaponWeapon

The Oil Crisis of 1973-1974The Oil Crisis of 1973-1974

O.P.E.C.

(OPEC) The Organization of the Petroleum Exporting Countries•intergovernmental organization•12 oil-exporting developing countries •coordinates and unifies the petroleum policies of its Member Countries

HistoryHistory - - When was OPEC founded?When was OPEC founded?OPEC was founded at a meeting held on 10th –14th September 1960 in Baghdad, Iraq

By five oil-producing developing countries:

•Iran •Iraq •Kuwait •Saudi Arabia•Venezuela

•Suez Crisis (1956) •6-day War (1967)•Yom Kippur War (1967)

Political Oil WeaponPolitical Oil Weapon