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Oil: The Weapon of the New World Order

The key to the conflict over Mideast oil, amidst China's growing influence in the Arabian peninsula, is simply lowering demand.

 
Thursday, June 19, 2008
by Gal Luft
 

As nations become increasingly dependent on oil, it becomes strategically imperative for them to secure their access to the Middle East. This means building strong alliances with the region’s suppliers, providing them with diplomatic support and military aid, and often turning a blind eye to their human rights transgressions.

Since the famous 1945 meeting between U.S. President Franklin D. Roosevelt and the Saudi King Abdul Aziz ibn Saud aboard the USS Quincy in Egypt's Great Bitter Lake, it was the U.S. that served as the guarantor of security and stability in the Persian Gulf. In fact, the use of military power to ensure free flow of oil from the Persian Gulf has been a tenet of U.S. national security strategy.

According to the Carter Doctrine, put forth by President Jimmy Carter in 1980, any effort by a hostile power to block the flow of oil from the Persian Gulf to the U.S. will be viewed as an attack on America’s vital interests and will be repelled by any means necessary, including military force. Since the policy’s inception, the U.S. has exercised the Carter Doctrine several times.

When Iranian forces attacked Kuwaiti tankers during the Iran-Iraq War, President Ronald Reagan authorized “reflagging” and provided them with U.S. Navy protection. Then, following Iraq’s invasion of Kuwait in 1990, President George H.W. Bush authorized military action aimed to defend Saudi Arabia’s oil fields and restore Kuwait’s sovereignty.

In the decade between the Gulf War and the 2003 Operation Iraqi Freedom, the U.S. strengthened its military presence in the region, building bases in Qatar, Bahrain, and Kuwait. At a cost of $50 billion to $60 billion per year the U.S. patrolled the waters of the Gulf, imposed a no-fly zone in Iraq, and provided training and equipment to the region's militaries.

Throughout the Cold War years, the Pax Americana in the Middle East was rarely challenged. The Soviets had strategic interests in the region but being oil rich their economy was hardly dependent on Middle Eastern oil.

All this is going to change. With the economic ascendance of oil-poor China and India, in the coming decades the Middle East will turn increasingly to Asia to market its oil and gas. By far the most important growth market for countries like Iran and Saudi Arabia is China, which is currently the world’s second largest oil consumer and which by 2030 is expected to import as much oil as the U.S. does today.

To fuel its growing economy, China is following America’s footsteps, subjugating its foreign policy to its energy needs. It is attempting to gain a foothold in the Middle East and build up long-term strategic links with the region’s producers. Though some optimists think that China’s pursuit of energy could present an opportunity to enhance cooperation, integration, and interdependence with the U.S., there are ample signs that China and the U.S. could already be on a collision course over oil.

For China, the biggest prize in the Middle East is Saudi Arabia, home of a quarter of the world’s reserves. Since September 11, tension in U.S.-Saudi relations has provided the Chinese with an opportunity to win the heart of the House of Saud. To Washington’s dismay China has also set its sights on Iran, announcing that it will not support sanctions against Iran in the UN Security Council.

No doubt that as China’s oil demand grows, so will its involvement in Middle East politics. China is likely to provide the region’s energy exporters not only with diplomatic support but also with weapons, including assistance in the development of WMD.

India is no less of a challenge. Unlike China whose geography allows oil imports from neighboring Russia, India’s only nearby source of oil and gas is the Middle East. In recent years, India has grown increasingly interested in signing energy deals with Iran, Saudi Arabia, and the UAE. Just like China, India’s engagement w

 
 
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