The Use of Energy Interdependence as a Political Tool

Abstract

Energy is the heart of modern economies, and oil and gas are among its principle elements. None of the newer alternative sources of energy—such as nuclear power—has as yet gained a position of predominance in the generation of electric power. This being the case, control over and manipulation of oil and gas production, transportation, sales, access to markets or imports, and prices are all vital aspects not only of global energy interdependency, but also formidable tools in the pursuit of national or collective economic, political, and security objectives. It is significant that the very fact of this interdependency does not necessarily mitigate, but all too frequently reinforces the vulnerabilities of a majority, if not all, of countries of the world to the manipulations of the oil factor. While such manipulation is often resorted to in the name of strengthening political stability and peace, there is a far from minor risk that the consequences of such manipulations may have serious unintended political and economic effects—not only on the local, but also on the regional and even wider scale—and, therefore, may in reality be destabilizing. Note, for example, the recent jump in the price of oil futures as a result of a perceived Iraqi threat to Kuwait despite the relative oil glut in the world market and the known ability of other producers to make up for the loss of Kuwaiti oil. Unfortunately, there are as yet no generally agreed to rules of the game; consequently, it becomes all too frequently an exercise in raw national power and a form not only of economic, but also political imperialism justified by claims to preeminent national interests.