The Energy Industry's Role in Influencing the US Foreign Policy towards the Gulf Region - Literature review Example

College: Literature Review: The energy industry's role in influencing the United s foreign policy towards the Gulf region. According to the official US government source on fuel economy information, the US currently imports half of the oil used for consumption, with imports currently at 57 % and with reducing local reserved with increasing dependence on oil , there is need for the Federal government come up with policies that will address the looming energy problem. With most of the world’s oil reserves controlled by OPEC which controls two thirds of the oil in the entire world, the US has continued to highly spend on energy for instance the government has spend $ 1.9 trillion from 2004 to 2008.The figure below represents the coil consumption from the early 1970’s to 2008 Source: www.fueleconomy.gov. However ,the organization points out that although the government may not eliminate the importation of oil, there are ways in which it can reduce cartel market control and reduce the demand for the product (www.fueleconomy.gov,2010).One of the solutions that the government has sought in reduce this problem is the passing of a legislation that will see the decrease on oil through increasing corporate average fuel economy (CAFE) standards on new cars. This will see a reduction in the consumption of oil by 25 billion gallons by 2030. The United States oil politics entails the need and importation of crude well plays a centre stage in the politics of the United States (Gendier, 2003). Even though the US only constitutes of 5% of the world population, it global oil consumption ids 25% greater than that of the European Union. To cushion the energy supply from experiencing rude shocks, the US has for along time developed diplomatic ties with its allies in the Middle East precisely Saudi Arabia and Iraqi. According to Saudi Arabia, has 25 % of the world’s oil reserve and the US imports 13% of its oil imports from the country. Some of the initiatives taken by the US is to ensure that the Saudi Arabia government continues to price its oil in US dollars. The same ties have continued to exist in Iraqi in the context that it is protecting it from its enemies as well as protecting its energy. According to Gendzier (2003), the role of US in facilitating the acquisition of weapons is ignored or justified when it is in terms of Iraq-Iran war. However, there is little to talk about when it comes to the continuation of the US to remain in Iraq even after the war and the broader political agenda that has a hand in paying the US policy in the region. David and Schmitt (2002), indicates that the White House was reported to have “settled on a war plan for Iraq” this implied that the US had to take 200,000 to 250,00 troops by air ,water and land to the Iraq, the authors wonder why such an enormous move was justified. The US administration seldom acknowledge that the presence of its troops in the middle East is to protect the US oil companies and get access to the regions oil reserves (David and Schmitt, 2002). A report presented by the Institute for National Strategic Studies (INSS) clearly stated that the US military intervention in the gulf region was to protect its oil supply and protect US interests ““the US presence in the Gulf is primarily intended to maintain the flow of oil by preventing a hostile power from establishing hegemony over the region...” (INSS, 2002). The long distance between the US and the Middle East has not stopped it from being felt in almost every corner of the region. According to WGBH, Educational Foundation (2002), all through the 20th century, the US has had a long trail of intervention on diplomatic and war raged overture. Some of the interventions have been triggered by the long standing competition between the Soviet Union and The United States of America and the two have used the Middle East as a fighting ground. More so, the American economic interest on the Middle Eastern oil has also played an important role in the American Policy towards the gulf region (Gerges, 1993). Since the 20th century the US has made itself a major player in the gulf region with the use of its military, diplomatic and economic power. From the support and later disownment of Sadam Hussein the high influence the US has over the Gaza street politicians, to brokering of peace also between the Arabs and the Israelis tell a lot about the magnitude of interests that the country has in the gulf region. According to Blum (2003),the United States only received 11% of the oil from the region compared to Japan’s 62%, Europe’s 27% and German’s 35%, this situation made the United States rethink about its policies in the oil rich region. To solve the oil mystique, Washington had to come up with a policy that would manage it gain power on the regions oil this policy was expressed by Noam Chomsky in the following phrase “ It’s been a leading ,driving doctrine of U.S foreign policy since the 1940’s that the vast and unparalleled energy resources of the Gulf region will be effectively dominated by the United States and its clients and crucially ,that no independent, indigenous force will be permitted to have a substantial influence on the administration of oil production and price” (Blum, 2003 p.331). The US which consider US domestic reserves as more costly compared to those in the Gulf region, in addition, Blum (2003) indicates that the problem is not based on the supply problem but on the amount of profit to be received from the oil . However, changing this equation does not only rely on the use of force. German (2011), in his report indicated a section of the congress was accusing President Obama of pacing too much restriction on the US oil production. They argued that, Americans needed the precious commodity in plenty and there government should not curtail its production while heading to the Middle East to purchase at exorbitant prices whereas the money would be used to develop the economy. Senator Lee drew links between the national debt and the oil importation. To gain entry and control over the oil in the gulf, the US has used its military power during the Israeli invasion, after a discotheque bombing in Berlin, the US bombed Libya, Iraqi invasion of the oil rich Kuwait all in a bid to protect its source of oil this one of the main driver of the economy. However there have been many critics who question the economic viability of the military use to gain oil control, for instance the over stay of the US military in Saudi Arabia led to heightened criticism of the Western country. According to the (Blum,2003) ,The USA congress use of military in Iraq is to ensure that the Iraqis have been given the opportunity to vote for a democratic leaders who will ensure that the country maintains a secure environment where political scores can be soled amicably. However the US military commitment and continual interference in the Iraqi political has raised eye borrows and question over the real intension of the US military in the gulf. Besides that ,the Us presence in the Iraqi seems effortless and a waste of resources because to what extend would the country be willing to support the Iraqi in reforming providing diminishing security, management of Iraqis sovereign economic resources ,to what scale should the US involve itself in internal mater of the Iraqis? Some of the legislation in the 111th Congress are directly related other US foreign policy on oil in the gulf ,for example Sec 1221 of P.L 111-84, the National Defense Authorization Act for the financial year 2010, states that “ no funds appropriated pursuant to an authorization of appropriations in this Act may be obligated or expended. To exercise United States control of the oil resources of Iraq”. (Blanchard, 2009 pg 22).This indicates that the US public is cautious about the wastage of public funds in funding futile efforts in the gulf. According to U.S. Department of Defense, during president’s Bush Reign, he stated that all provision that were in pursuant to the gulf region, should be consistent with the law, in ensuring his statement,he stated that the executing branch would “construe such provisions in a manner consistent with the constitutional authority of the President” because, in his view, the provisions “could inhibit the President’s ability to carry out his constitutional obligations.” (Blanchard, 2009, p. 25). According to, there has been mistrust on the intension behind the US policy towards the gulf, for example The Federal Trade commission staff, once failed to table its report, however after long debated the reported was filed and it indicated that in the modern day, the power held by international oil companies is so wide and likely to invite its abuse. The US presence in the gulf had elicited non ending debates some of which can be ended by the adoption of alternative sources of energy. According to Blum,(2003) the, the amount of recourses used in funding military actions and other diplomatic initiates would go along way in finding alternative energy sources. According to Mayer (2008) an author who writes for PBS, the Oil Industry in the US has big influence on its politics, big oil companies such as Exxon Mobil, Shell Oil, Chevron, BP American and Conoco were advantaged ahead of other energy production companies in terms of subsidies and tax cuts. The favors extended these companies is mainly because of the plenty of many that they contribute to the congress and the support they give during presidential campaigns. For instance, former president Bush and Cheney who had been appointed to oversee the enactment of the oil policy spent a whooping to $ 393.2 million on lobbying thee Federal government .On the other hand ,environmental groups and alternative energy production and supply companies ,which mostly fall under the Republicans side, received mush less compared to the Big Oil. A Congress man complained that Cheney task force only had the oil industry on the table ignoring other energy sectors. The oil company spends big sums of money on hiring lobbyists to push for its agendas in the congress. With democrats in control of the Congress ,the oil industry is worried that there will be a variety of anti oil legislation, it all depends on who is in power of the White House (Mayer,2008). References David E. Sanger and Eric Schmitt, “US Has a Plan to Occupy Iraq, Officials Report,” The New York Times, Oct. 11, 2002, p.14. Blanchard, C .M. (2009) Iraqi: Oil and Gas Legislation, Revenue ,Sharing and U.S. Policy from http://www.fas.org/sgp/crs/mideast/RL34064.pdf Gerges, Fawaz A. America and Political Islam: Clash of Cultures or Clash of Interests? Cambridge: Cambridge University Press, 1999. James Glanz, “Billions in Oil Missing in Iraq, U.S. Study Finds,” New York Times, May 12, 2007; and, GAO, GAO-07-677, May 15, 2007, pp. 26-7. Rubin, Barry M. Paved with Good Intentions: The American Experience and Iran. Oxford: Oxford University Press, 1993. U.S. Department of Defense, Measuring Stability and Security in Iraq - June 2008, Report to Congress in accordance with the Department of Defense Appropriations Act 2007 (Section 9010, P.L. 109-289), p. 3. U.S. Department of Defense, Measuring Stability and Security in Iraq - June 2008, p. 10. German, B. The Hill , 03/08/2011 ,Tea Party senator says White House is “hell-bent” on ‘suicidal energy policy retrieved from http://thehill.com/blogs/e2-wire/677-e2-wire/147999-tea-party-senator-calls-white-house-energy-policy-suicidal U.S. petroleum use: Energy Information Administration. 2009 WGBH Educational Foundation (2002). Global Connections; The Middle East Retrieved from http://www.pbs.org/wgbh/globalconnections/mideast/questions/uspolicy/index.html Mayer,L.R. Big Oil ,Big Industry Accessed on 1st March 2011 from http://www.pbs.org/now/shows/347/oil-politics.html Read More