This master thesis is analysing the International Political Economy of Oil. In order to do so, it is describing the impact and the relevance of oil in our everyday life. Furthermore, it outlines the major political incidences that took place in the period between the early 1950s and today, which can be connected to oil. This paper also analysing these incidences through the theoretical perspective of IPE and IR realism as well as liberalism from a ‘Western’ point of view. It hereby shows that from the early 1950s until today the ‘West’ was/is following in mot cases a strongly realist approach when it comes the precious resource we call oil. This paper illustrates cases from the overthrow of the Iranian regime in 1953 until the ‘race’ for resources in the Arctic today.
Table of Contents
1 Introduction
2 Prologue
3 The strategic importance of oil
3.1 WWI and WWII
3.2 The first Gulf war
3.3 The second Gulf War
4 The other side of the coin: The petro-state
5 Theoretical background
5.1 Classical Realism
5.2 Economic nationalism / Mercantilism
5.3 IR liberalism
5.4 Economic liberalism
6 The importance of state power for Oil
6.1 The Baku–Tbilisi–Ceyhan Pipeline
6.2 Water ways and state power
7 The oil price, the Middle East and international oil companies
7.1 The pre 1973 developments
7.2 The 1973 oil crisis and its aftermath
7.3 The US relations with Iran and Saudi Arabia after 1973
7.4 The IEA and the International Energy Forum
7.5 US import restrictions, the oil price and a ‘competitive’ market
8 The consequences of an ‘Oil-rush’ in the arctic. At the edge of a ‘new Cold War’?
9 Conclusion
Research Objectives and Key Topics
This dissertation analyzes the International Political Economy of Oil after World War II, examining how the "West" has navigated oil politics through the theoretical lenses of realism and liberalism. It focuses on explaining state reactions to major political events connected to oil, ranging from the 1953 Iranian regime change to contemporary resource competition in the Arctic.
- The strategic significance of oil for state security and economic growth.
- The political and economic dynamics of "petro-states."
- Theoretical evaluation of Western state behavior using IR and IPE theories.
- Analysis of key historical events, including the 1973 oil crisis and Gulf wars.
- Geopolitical considerations surrounding oil infrastructure and maritime choke points.
Excerpt from the Book
6.1 The Baku–Tbilisi–Ceyhan Pipeline
Pipelines have the huge advantage of being built within a long time perspective, regarding the delivery of a certain quantity of oil to a specific place and customer. After the collapse of the Soviet Union, ‘new’ independent sovereign nations came to existence around the Caspian See, which were rich in oil. The development of these resources was inextricably entangled with the ambitions of nations and of course geopolitics (Yergins 2011: 43). However, when it comes to natural resources there are many players in the game, as it usually happens.
The Caspian Sea is not connected to any other ocean or sea. The richest in oil and key state in the region is Azerbaijan on its west shore (please see map on the following page). Azerbaijan is bordering Armenia and Georgia to the West and Russia to the North. In the South of the country is Iran, which has ambitions to be the dominant power in the region. All these states and of course the United States, Britain, Russia and China, as well as Turkey had a dominant role in reshaping the region. The major point of conflict for all these states was on which route and how the Caspian ‘gold’ would be exported to the world market (Yergin 2011: 43-52).
Chapter Summaries
1 Introduction: Outlines the scope of the dissertation, focusing on post-WWII oil politics and the application of IR and IPE theories to Western policy.
2 Prologue: Describes oil as a fundamental driver of global security, prosperity, and national interest since the early twentieth century.
3 The strategic importance of oil: Examines the vital military role of oil during the World Wars and the First and Second Gulf Wars.
4 The other side of the coin: The petro-state: Analyzes the economic and political risks inherent in resource-rich states, such as the "Dutch disease" and fiscal rigidity.
5 Theoretical background: Provides a framework for analyzing state behavior through Realism and Liberalism in both IR and IPE contexts.
6 The importance of state power for Oil: Discusses the physical and political security requirements of energy infrastructure, including pipelines and maritime choke points.
7 The oil price, the Middle East and international oil companies: Evaluates the complex relationship between Western governments, oil companies, and Middle Eastern producers through key historical developments like the 1973 oil crisis.
8 The consequences of an ‘Oil-rush’ in the arctic. At the edge of a ‘new Cold War’?: Investigates the potential for conflict in the Arctic and concludes that peaceful cooperation is likely due to economic interdependence and shared institutional frameworks.
9 Conclusion: Synthesizes the findings, confirming that while Western nations occasionally adopt liberal approaches, their overarching strategy regarding oil remains strongly realist.
Keywords
Oil, International Political Economy, Realism, Liberalism, Middle East, Energy Security, Petro-state, OPEC, Baku-Tbilisi-Ceyhan Pipeline, Arctic, Geopolitics, 1973 Oil Crisis, State Power, Global Economy, Infrastructure.
Frequently Asked Questions
What is the central focus of this research?
This work examines the International Political Economy of Oil, specifically how Western nations have managed oil security and relations with exporting countries from the post-WWII era to the present.
What are the primary theoretical frameworks used?
The paper utilizes four main theoretical perspectives: IR Realism, IR Liberalism, IPE Realism (Mercantilism), and IPE Liberalism.
What is the main research question regarding Western behavior?
The study seeks to explain why Western nations reacted to major oil-related political incidents in the specific ways they did, and whether these actions align more with realist or liberal theoretical predictions.
Which scientific methods or analytical approaches are employed?
The author uses a qualitative, theory-driven historical analysis, applying core assumptions of international relations theories to interpret specific events like the Iranian overthrow in 1953, the 1973 oil crisis, and modern Arctic developments.
What is covered in the main body of the work?
The main body covers the strategic importance of oil, the nature of "petro-states," the role of state power in infrastructure protection, and a historical timeline of oil price developments and their political contexts.
What are the key terms that characterize this work?
Key terms include Energy Security, IPE, Realism, Liberalism, OPEC, Petro-state, and geopolitics.
How does the author interpret the 1973 oil crisis through these theories?
The author argues that while the embargo caused "Western" nations to scramble for their own interests, the subsequent response—such as the creation of the IEA—reflects a complex mix of realist defensive strategies and liberal institutional cooperation.
What is the significance of the Arctic example in the final chapters?
The Arctic section serves as a contemporary case study to test whether resource competition necessarily leads to a "new Cold War" or if existing international institutions and economic interdependence can foster peaceful cooperation.
- Quote paper
- Felix Kruse (Author), 2012, An Analysis of the International Political Economy of Oil since WWII, Munich, GRIN Verlag, https://www.grin.com/document/214917
