Stanford Journal of International Relations

The Politics, Economics, and Security of Middle Eastern Oil Supplies: A Call for American Energy Independence
by Ariella Axler

odern era globalization has endowed power in resource-rich countries, enabling them to derive influence from the control of vital commodities. Oil, one of the most crucial goods, has therefore been used as a lethal weapon, sparking harsh repercussions on the global economy and political dynamic. The most recognized usage of the oil weapon was the 1973 oil embargo. In response to US military assistance to Israel during the 6-day war, the Organization of Petroleum

Exporting Countries (OPEC) sought to exert political pressure by declaring an oil embargo, raising the price of a barrel by 70 percent and cutting production in increments of 5 percent. Oil price shocks had immediate economic effects, as the quadrupled price of fuel led to recession, inflation, reduced productivity and economic stagnation. The crises of the past serve as testimony to the power of geopolicity, and must prompt caution in the eyes of the international community about the future of energy security.

26 Fall 2011

Energy Independence

As civil unrest spreads throughout the Middle East, fear of a new oil crisis has arisen. Beginning on February 15, 2011, with protests in Benghazi, the world witnessed the unfolding of the Libyan revolution. The ensuing civil war between Qaddafi loyalists and the rebels left the country ablaze- a haze of blood and ash with over 25,000 buried in the remnants and 4,000 refugees who fled the bloody civil war. In the midst of the anarchic insurgency, Libyas 1.6 million barrels per day of supply were taken off the market. Since Libya is the globes 18th top petroleum exporter, providing premium quality, low sulfur oil, Libyas immobilization had tangible impacts on the international oil market. This global shortfall will not see immediate compensation; OPEC officials, oil analysts, and Libyas former oil minister, Shokri Ganem, all agree that restoring production to its previous levels will take years- until 2013 or 2014 at the earliest.1 Along with Libyan turmoil, there are concerns that an incident could unfold with Al Qaeda terrorists roaming near Yemens Aden coast, where 40 percent of the worlds oil supplies pass through. Any occurrence of an attack on an oil tanker or disruption to the transit of fuel in the region would result in devastating consequences.

The Arab Spring Oil Rout

Energy Independence

The volatility of oil supplies reinforces the need for energy independence. In order to reduce severe market fluctuation, building up a stockpile reserve is a necessity. After the OPEC embargo, in 1975, the US established the Strategic Petroleum Reserve. Yet, this reserve is only a short-term solution; oil is a limited resource, and cannot serve as a sustainable option for the future. Seeking energy outside fossil fuels is the most feasible means to absolute energy security. US investment in alternative, renewable energy is the first step to achieving a fruitful energy economy. The benefits of investing in renewable energy sources are manifoldspanning from increased global political influence to job creation, and to cheaper energy prices. A self-sufficient US energy sector would be advantageous in relation to national security, and would be a lucrative asset to revitalize the economy.

Endnotes

1 Lindsay, Greg. How The Arab Spring Paved The Way For A DoubleDip Recession, And Why It Might Prevent The Next One . Mon, 11/21/2011 | Co.Exist: World Changing Ideas and Innovation. Codesign. com. Web. 21 Nov. 2011. <http://www.fastcoexist.com/1678446/howthe-arab-spring-paved-the-way-for-a-double-dip-recession-and-why-itmight-prevent-the-ne>.

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