Powering Foreign Policy: The role of Oil in Diplomacy and Conflict

Powering Foreign Policy: The role of Oil in Diplomacy and Conflict
Molly Farneth, Research Fellow
Physicians for Social Responsibility, Energy Security Initiative

Executive Summary
For more than fifty years, protection of oil supplies has been a central U.S. national security interest, vigorously defended with military and diplomatic pressure. At present, oil provides 40% of energy and 97% of transportation fuel in the U.S. It is central to American industries like agriculture and tourism, and is critical to the U.S military, since oil fuels nearly all weapons-delivery systems. Yet America is increasingly dependent on foreign sources of oil to meet its needs; oil consumption is growing, but domestic production has been in decline since the 1970s, and the United States now imports more than half of the oil it consumes.

As American’s demand for oil increases, the importance of secure access to foreign oil supplies grows. This reality has been reflected in American foreign policy since President Franklin D. Roosevelt’s initial relationship with the Saudi royal family in the 1940s. Roosevelt declared in 1943 that “the defense of Saudi Arabia is vital to the defense of the United States. “In 1980, President Jimmy Carter made this link more explicit when he issued the Carter Doctrine, declaring, “An attempt by any outside force to gain control of the Persian Gulf will be regarded as an assault will be repelled by any means necessary, including military force.” Moreover, the Bush administration’s National Energy Policy characterizes access to global oil as a vital national interest, perpetuating the historical link between U.S. dependence and American foreign policy.

In order to protect U.S. access to inexpensive petroleum in volatile oil-producing regions, the United States uses a variety of diplomatic and military tactics. The United States supports undemocratic regimes that protect stability and provide access to oil. The U.S. also provide’s military support and strategic guidance to governments that can help guarantee and uninterrupted flow of oil. Furthermore, U.S. active duty personnel are present in every major oil-producing region as a mode of protection.

This report addresses each of these tactics and the role that they play in American foreign policy in oil-producing regions:

* In the Caspian Sea region, the U.S. is competing with Russia and China for influence and access to regional oil supplies. Existing inter- and intrastate tensions are being exacerbated by the increasing competition for access to energy resources among these global powers.

* Another major oil supplier, Nigeria, is plagued by political instability, corruption, and violent internal conflict. In order to bolster oil production, the Nigerian government must be stabilized and its oil infrastructure secured against internal threats. Stability is encouraged in part through U.S. support for Nigerian government military forces.

* In Kuwait and Saudi Arabia, the number of U.S. active duty personnel steadily increased throughout the 1990s, even as the overall number of U.S. active duty personnel stationed abroad was falling. The extended presence of American troops in Saudi Arabia and throughout the Persian Gulf was cited as a central grievance in Osama bin Laden’s fatwa. Although the U.S. has recently relocated the majority of its troops formerly stationed in Saudi Arabia to nearby Qatar, significant military presence remains in the Gulf region.

* In Iraq, insurgency and internal chaos have replaced the regional threat of Hussein’s despotism, with Iraq’s oil industry taking a prominent role in the conflict. Critical U.S. goals in Iraq rely on increasing oil productions, which will require an augmented military effort. The long-term military presence required to protect oil infrastructure in Iraq, however, could provoke additional resentment and hostility toward Coalition forces and America itself.

* Arms transfers to Saudi Arabia and allied Gulf states since 1990 have been valued at more than $100 billion. Here is a partial list:

Bahrain $1,357,610,582
Kuwait $5,200,164,699
Oman $168,199,099
Qatar $47,794,858
Saudi Arabia $44,341,718,138
UAE $9,697,692,265

To date, U.S. policy makers have focused on the diversification of oil sources rather than the diversification of energy sources and on augmentation of oil supply rather than the management of oil demand. Resulting energy policies, therefore have been unable to decrease the influence of oil geopolitics in U.S. foreign and military policy considerations.

Fortunately, there are real alternatives to oil dependence and the pathologies it produces. To expedite the transition from oil dependence to energy independence, Congress must:

* Reject the National Energy Policy in favor of an energy policy that is innovative, comprehensive, and forward-looking in its focus on reducing America’s reliance on oil rather than increasing our access to it.

* Raise fuel efficiency standards for new cars and trucks. Current CAFE standards are outdated and fail to account for high-efficiency technologies already on the market, including hybrid and advanced diesel engines.

* Enact a series of fiscal policies that encourage research and development of sustainable transportation technologies, including support for alternative fuels like clean biomass and investment in long-term projects like the development of clean, renewable hydrogen fuel.

* Shift subsidies away from mature energy industries like oil and gas and instead provide incentives for energy-efficient technologies and renewable energy industries.

* Promote existing mass transit systems, making them affordable and convenient, and develop mass transit systems in areas currently under served by public transportation.

Historically, America’s reliance on foreign oil supplies has led the United States to look the other way in its relationships with dictators and despots. In the current environment of regional conflict and global terrorism, it is imprudent for America to saddle its foreign policy with the geopolitical constraints of oil dependence. America is in a position to choose its future energy policy: it can become more dependent on imported oil, using foreign policy and military force as tools to secure its energy supplies, or it can under take the difficult task of decoupling energy policy and military policy by decreasing oil consumption and investing in renewable technologies. For the sake of national and global security, Americans must demand the latter.

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