Since the turn of the 19th century, petroleum has served as the most essential commodity in the industrialized world. In 1973 many of the leading oil exporting nations within OPEC, decided to restrict supply and drive up cost in protest of US military aid being sent to Israel during the Yom Kippur War. In response to raised prices, several sectors in US economy suffered severe downturns, while Western financial markets underwent high levels of volatility. Following the oil crisis, US policymakers – who had previously been tethered to a Cold War paradigm – began increasingly to shift their thinking towards the importance of maintaining stable oil costs, this in turn influenced a foreign policy outlook that would consider the Middle East a growing priority.
Throughout the 80’s and into 90’s US foreign policy sought to maintain stability in the Middle East, and protect US oil interests. The gulf war was primarily designed to prevent Saddam Hussein from encroaching upon Saudi oil production, while US support of Saddam during the Iran – Iraq war, stemmed from concerns over expanded Iranian control over supply. More recently, the Iraq war further exemplified US anxiety over the prized commodity; considering that the Iraqi dictator had no demonstrable links to terrorism, it is plausible to suggest that US policy was somewhat motivated by an underlying desire to establish a military presence, which would serve to offset any potential disruptions to supply.
As we have moved forward past the second Iraq war, US energy production has risen greatly, this coupled with a cooling of Chinese economic growth, has resulted in a sharp decrease in the price of a barrel of oil. Entering into this political season it will be interesting to see how foreign policy will eventually take shape, given the substantial energy resources now being extracted on US soil. Perhaps the time has arrived for a policy conversation that is less concerned with toppling or propping up of petro rich regimes, and focus more on exploring how to satisfy US energy demand using home grown resources.
Avi is a graduate student at Denver University and is a free-lance business writer.