Author/s: Book title, edition number – edit on master slide Oil and Political Economy in the International Relations of the Middle East – Week 7

Author/s: Book title, edition number – edit on master slide

Iraq

Author/s: Book title, edition number – edit on master slide

Short History of ME Oil Politics

Author/s: Book title, edition number – edit on master slide

A consortium of 7 companies ( known as 7 sisters), 5 of which are American, is given financial interst in Iraq Petroleum Company, and the companies agree to not indepedently develop oil in an area that spans form Turkey to Iraq and Saudi Arabia. Its ‘self-denial clause’ allows seven companies to control the bulk of Mideast oil production by the early 1930s. The Redline Agreement (1928)

Author/s: Book title, edition number – edit on master slide The Red Line Agreement (1928) -2

Author/s: Book title, edition number – edit on master slide Seven Sisters

Author/s: Book title, edition number – edit on master slide Developing US-Saudi Arabia Relations ( ) In 1938, SA is found vast quatities of oil. In 1943, with concerns growing about diminishing US oil production capacity, President Roosevelt decleares Saudi Oil vital to US security and provides financial support. A few years later, the world’s biggest oil fields is found in SA, and it quickly becomes the world’s largest exporter of oil – though not a significant US supplier for several decades.

Author/s: Book title, edition number – edit on master slide President Roosevelt and King Abdul Aziz Ibn Saud ( Feb.1945)

Author/s: Book title, edition number – edit on master slide In August 1953, the Iranian military, with the help of British/US intelligence agencies, overthrows Iranian Prime Minister Mohammed Mossadeq – who nationalized the country’s oil industry. In October 1954, the Iranian government led by the Shah agrees to a consortium of mainly US companies to manage Iran’s oil industy. US- Iran Oil Consortium (1954)

Author/s: Book title, edition number – edit on master slide

In July 1956, Egypt nationalizes the Suez Canal, which has been controlled by Britain and France. In a coordinated attack with Israel temporarly seize the canal in October. Half of the canal’s traffic is petroleum, and the ensuring crisis from its closure threatens Middle East oil shipments, which supply about 800,000 barrels a day to Europe. Eisenhower compels a withdrawal to avoid confrontation with the SU. The Suez Canal Crisis (1956-7)

Author/s: Book title, edition number – edit on master slide 1st OPEC Conference, Baghdad, September 10–14, 1960

Author/s: Book title, edition number – edit on master slide On June 6,1967,Israel enters into an armed conflict with Eqypt,Syria,and Jordan,known as the Six Day War. In return, Arab oil ministers call for an embargo on countries friendly to Israel. US production surges and largely offsets the teporary loss of Mideast oil globally. By September, the embargo is lifted. First Arab Oil Embargo

Author/s: Book title, edition number – edit on master slide On October 6, Syria and Egypt attack Israel. On October 19,the Nixon administration announces military aid package to Israel. In return, Arab states suspends oil exports to Israeli allies, reducing traded oil supplies by 14% internationally and skyrocketing oil prices. Oil Crisis (October 1973)

Author/s: Book title, edition number – edit on master slide In October 1978, thousands of oil workers go on strike in Iran, as part of a cycle of unrest protesting the Shah. Doping in Iranian oil output, 5% loss in global production. As a response to the hostage crisis, Pr.Carter ordered severing diplomatic relations and embargoing Iranian oil imports. Between January 1979-Dec. 1979,global oil prices more than double. Iranian Revolution ( )

Author/s: Book title, edition number – edit on master slide

Carter Doctrine (1980) “ An attempt by any outside force to gain control of the Persian Gulf region will be regarded as an assault on the vital interests of the United States of America, and such an assault will be repelled by any means necessary, including military force ”

Author/s: Book title, edition number – edit on master slide Continuing attacks on both Iraqi and Iranian oil facilities remove 4 million barrels a day in oil production from global production. Regan’s national security directive in 1983 to increase the US military presence in the Persian Gulf to protect the oil facilities and shipments to allies. Iran-Iraq War ( )

Author/s: Book title, edition number – edit on master slide Iraq invades Kuwait on August 2,1990, following a dispute over the Rumaila oil field on the border. In response, Bush says Iraq’s aggression poses an economic threat to the US,declares the ‘sovereign independence’ of SA a vital interest’ and deploys troops to the country. Iraq’s Invasion of Kuwait (1990-1)

Author/s: Book title, edition number – edit on master slide In February 2011,Libya becmoes the first major oil-producing nation ( 2% global oil output) to join Arab uprisings. Though the country does not supply oil to the US, concerns grow that the situation in Libya and potentila unrest in other oil-producing nation could lead to a new global oil crisis. In a March 30 speech, Obama says: ‘ We will keep on being a victim to shifts in the oil market we get serious about a long-term policy for secure, affordable energy.’ Libya Rocks Oil Markets

Author/s: Book title, edition number – edit on master slide

Strategic interest in oil since early 20th century, e.g. British policy in the Gulf. Fundamental influence in shaping boundaries and independent existence of many states in the region. Instrumental in consolidation by favouring aggregation around the oil sector. Oil is a supporting cause to violence, but not a primary one. Oil and the Consolidation of the State System

Author/s: Book title, edition number – edit on master slide Impact of oil on relations between countries of the region as well as relations with the rest of the world. British, and later American, attitudes towards the Middle East strongly influenced by oil. Oil as a tool, rather than an objective: sanctions against Libya, Iraq, Iran make access more difficult in order to pursue political goals. For producers, oil is not a prominent issue in shaping foreign policy, but their ‘ regime security’ is. Oil and the International Relations of the Middle East

Author/s: Book title, edition number – edit on master slide

Oil rents (i.e.petrodollars) are paid directly to the state from abroad, which in turn supports society by allocating this rent. Production (taxes coming from society) vs Allocation. Not all Arab states are rentier. Implications of rentierism for state: no need to seek legitimacy through democratic representation, and autonomy in policies. Challenge of establishing representative democracy in a rentier state  prospects for Arab Spring? Oil and Domestic Politics: The Rentier State Paradigm

Author/s: Book title, edition number – edit on master slide Dialectic between oil-poor and oil-rich states in the region. Authoritarian rentier states do not need a “national myth”. Oil-poor state claims to share of rent. 1970s rent boom led to period of international redistribution. Balance of power has shifted to the newer, oil rich states such as the countries of the GCC Oil and Inter-Arab Relations

Author/s: Book title, edition number – edit on master slide

Being an oil producer seems to help against uprisings. Arab Spring’s challenge to Gulf countries: divided responses. Outcome of ‘revolutions’ will determine impact: pressure for democracy in the Gulf, or business as usual? Regional/International Environments and Political Order

Author/s: Book title, edition number – edit on master slide

Middle East plays a central role in international oil. Debate over whether oil is a political commodity. Apart from rents, control of oil has not brought special political or military benefits. Polarisation between oil-haves and oil-have- nots Conclusion

Author/s: Book title, edition number – edit on master slide