ateng_batigol

The US high rate of oil consumption with depleting reserves resulted in an enormous reliance on imported oil particularly from the Middle East. On the other hand, revenue from oil exports is the backbone of oil-rich Arab countries, especially those located in the Persian Gulf region. The political instability and violent conflict in countries such Iraq and Iran, domestic opposition to current regime in Saudi Arabia, and the fact that most of 9-11 terrorists were Saudi national have all been perceived by the American consumer as warning signs of vulnerable dependence on a critical resource from an unstable region. Consequently, the U.S. is moving towards greater energy efficiency and exploration of alternative sources of energy in order that it can reduce its dependence on imported oil.

How can one understand oil dependency in the age of global economic integration? What lessons can one learn from the fact that the world community made a point of boycotting exports of Libya’s oil for almost two decades? Is oil a weapon for the producing or consuming countries to wield or for both? It will be great to crack this very issue.

Keep up to date with more articles in future as I will do my best to make it at least readable.

-batigol-

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