Global Oil Industry Conflict: An Apocalypse End

Since the discovery of its use, petroleum has been playing a very important role in almost all key industries in the world. Petroleum, also known as oil is a vital component for fuel as well as gasoline used to power a greater percentage of machines in the world. Moreover, oil is a key raw material for the manufacture of most chemical products including pharmaceuticals, plastics, fertilizers, and solvents. Petroleum or oil can be termed as the father of the industrial civilization as it plays the important role of maintaining a larger percentage of the global industrialization.

Oil forms the largest percentage of energy consumption in the world, ranging from as low as 30% to as high as 60%, depending on the country’s energy consumption. Forming the world’s largest industry in terms of dollar value, the industry which includes production, distribution, refining as well as retailing is the largest in the world (Venn, 2002).

Countries as well as companies and organizations are aware of this importance and put up measures that would gain them access to this all too important commodity. In most countries, governments have put up measures that ensure that oil as accessible to them. These include providing major tax breaks to oil companies on almost all oil explorations as well as extractions. These breaks extend to oil field leases as well the equipment used in oil drilling. Governments also provide heavy public subsidiaries to these companies. In exchange for the favors that the governments offer to the companies, they get to access cheaper oil for their countries.

However, while oil has managed to form a larger part of relief in industrialization, it has become the source of conflict in many parts of the world, more so in countries where the precious commodity is produced.

Impact of oil discovery and production

Referred to as the worlds ‘black gold’, oil has in the last century or so become a source of hardships and misery in societies where it has been found. Corrupt and authoritarian governments, as well as loop-sided economies, and violent conflict form the order of the day in countries where petroleum producing countries are concerned. Apart from the internal conflict that most of these countries face, there is the fact that huge multinational companies, through military interventions or clandestine operations are able to maneuver for the control of oil fields by using foreign powers (Stoff, 1982).

Due to the lucrative nature of the of the oil industry, even within these countries, rebel groups crop up and want to challenge the government hoping that they too would get part of the profits that come from then oil. These rebels are often dissatisfied citizens who have seen the greed that the government is experiencing as well as the greed and corruption that comes with the industry and feel that the government is not giving them their share. Case examples of conflicts that have been sparked by rebels over oil resources include Nigeria and Sudan to mention but a few. The degree of the rebel conflicts depends on the strength of the rebel group as well as the ability of the government to quash the rebellion. Some rebellions have even led to the formation of new countries such as was South Sudan’s case.    

Oil discovered in the between boundaries of two nations has also been cause for conflicts between the countries. These usually lead to boarder conflicts in the regions as well as international conflicts between the two nations because of the oil reservoirs (Karl, 1997). Recently, South Sudan and Sudan have been having a lot of boarder conflict that can be attributed to the existence of oil reservoirs that each state believes belong to them.

Other then the border conflicts, the damage that oil production causes to the environment has been a course of major demonstrations and strikes that result to lose of lives. Major environmental damages that have resulted either in the production of the oil pr in its transportation such as oil spills have been cause for major uproars all over the world.

Finally, there is the fact that oil has become a very expensive commodity. In recent years, the demand for oil has been at an all time high. With high demand comes the need to produce more oil thus more and more oil discoveries are being made all over the world. However, with greater demands comes the rise in the commodities prices. Rise in demand coupled up with rise in prices makes oil a very scarce resource (Heinberg, 2005). This has created conflict as people all over the world are now fighting to access this scarce commodity. What is even sadder is the fact that this is likely to be the trend in the next years to come this would mean that is no solution is sought in the nearby future; the likely hood of an escalation in the conflicts both local and international is likely as far as oil as a resource is concerned.

Reasons both international and local as to why oil is a source of conflict

In the last century or so oil has managed to become a source of conflict in one way or the other. This is more so because of the fact that in recent years oil reservoirs all over the world have dwindled because of too much usage. Studies have found that the connection between oil and conflict generally boils down to two expansive reasons. Its importance in a particular country’s economic as well as military power as well as its irregular geographic distribution in the globe.

 

 

Its economic significance

Oil is the primary energy source in the world. It accounts for almost 40% of the world’s energy consumption. It plays an important role in ground, air and water transportation. In the transport sector, oil provides up to 95% of the energy used in the industry all over the world. It is also used in other industries mentioned earlier on in the paper. Due to the critical role played by oil in the running of an economy, any shortage of this commodity has been known to create global economic recessions. There is also the fact that most countries that are able to export oil get good income from this export. Thus, in countries where the leaders may try to tamper with these exports, they are usually met with strong resistance.

Its significance to military power

Oil provides the energy used to power military equipments including the planes as well as the tanks, missiles, armored vehicles, and any other instrument that may be used in a war situation. Modern combat is very expensive to fuel due to the advancement in technology it is therefore very important that every country secure their military power by ensuring that that particular military has access to all supplies. Due to the important role that fuel plays in the functioning of a military, governments have ranked fuel possession as a matter of ‘national security’. In countries like the US, terming oil as a matter of national security means that they may resort to military force in order to protect it (Klare, 2004).

Its importance to oil geography

While oil is important at a global scale, its reservoirs are not simply located in any part of the worlds. In fact, natural petroleum is concentrated in large reservoirs in specific parts of the globe. Studies indicate that the largest reservoir which contributes to a third of the world’s petroleum is situated in the Persian Gulf area. The countries situated in this are provide about 90% of the world’s oil. However, in recent years, there is said to have occurred a gravitation oil shift, thus the oil reservoirs in countries that originally produced oil are depleting and oil is being discovered in countries that originally did not have any (Goodstein, 2005).

Types of oil conflicts

Oil conflicts often occur in either of two stages. The first is may occur before the oil itself is discovered. This is where discovery has been made and it has been found that there is a likely hood of oil discovery. The second one may occur where the oil is already being produced. The reasons for this conflict may be divided into three main reasons.

Territorial disputes

These disputes arise where boarders are involved and where offshore areas that are thought to be insignificant are concerned. Most of these places are usually considered insignificant until an oil discovery is made (Deffeyes, 2008). Some of the areas considered insignificant until the discovery of oil include the Caspian Sea whose discovery sparked a territorial conflict between Azerbaijan and Iran and the West African Bakassi Peninsula that caused friction between Nigeria and Cameroon.

Separatist struggles

In most countries, oil is produced in areas inhabited by ethnic groups. However, the proceeds of the production go to government officials as well national coffers. In this case, the members of the ethnic communities will feel that given the fact that the oil is on their land, and they are not getting anything from the government, then it would be best if they break away from the parent nation to form their own. This has been the case in Nigeria, Indonesia, and the southern part of Sudan. South Sudan is a recently independent state because of such a conflict (Alao, 2007).

Factional and dynastic struggles

Oil brings out the evil as well as the dictatorship in individuals. This is because whoever controls the oil and the revenues it brings in controls the nation and its people. Such people want to continue keeping this power and in fact do anything to be able to retain such power. This includes resorting to brute force as well as suppression of the people (Ross, 2012). Those not included in the power on the other hand will resort to any means in order to gain control of that power. These groups will resort to rebellion, terrorism, or coups to wrangle power from the powerful. This is the case in countries such as Nigeria and Saudi Arabia. In other countries such conflict arises in form of political indifferences as is the case in Venezuela.

Some of the world’s fuel conflicts as of the last quarter a century

While conflict has been brewing all over the world about oil, and who gets to control it, in recent years these conflicts have escalated (Ebel, 2002). In fact as of the past years more than two oil conflicts had erupted between nations over oil. Some of the more recent oil conflicts include:

The Sudan and South Sudan conflict

This conflict is still on going to date. Early 2012, troops from the newly formed South Sudan nation occupied an oil center in Heglig, a town that had been granted to Sudan in a treaty between the two nations. The Sudan government organized its troops which were to drive the Southern Sudan troops from the oil center. Since then, there has been conflict between the two nations.

The southern China Sea naval clash

This particular area is thought to contain large deposits of oil reservoirs. This has elicited a naval clash between the Chinese government and the Filipino government both of who are claiming rights over that particular stretch. The Filipino government claims to have discovered the oil and that it would start drilling. On the other hand china claims that the place is their territory.

Egypt oil conflict with Israel

As of the year 2012, Egypt had announced that it would cut off its oil supply to Israel. This announcement was followed by months of protests and attacks on the main pipeline that took oil to Israel.

Syrian oil conflict

Syria is a country with massive oil reservoirs and more recently rebels have come up and want a piece of the cake. This has resulted in conflict between the Syrian military and the rebel groups which has recently escalated to the use of chemical weapons. What is worse is the fact that nobody is aware of the extent to which this particular war this war is going to before it can end. Even worse is the uncertainty that has been brought about by the presence of the US army in this particular conflict.

Conclusion

Oil related conflict is a phenomena that has taken a toll in the last quarter a century or so. What is sad is the fact that at the rate at which these conflicts are taking place, with more than five conflicts reported in the last year alone. This indicates that the world is headed more and more conflicts in the future. Evidently, there are issues that are ‘fueling’ this rapid movement towards an apocalyptic oil conflict end. Other than greed for power as well as money, the shortage in the commodity is causing a panic in the world. Therefore those with oil want to hoard it and sell it at expensive rates while those without it are fighting to get it.

There is also the fact that geography is changing things. Oil is shifting to places that it was not originally available. Given the fact that the countries that originally had oil reservoirs had that much internal conflict, what would happen to countries that did not have the precious ‘black gold’ but now had access to it? Isn’t this an apocalypse in the making?        

 

 

 

 

 

 

 

 

References

Alao, A. (2007). Natural resources and conflict in Africa: The tragedy of endowment. Rochester, NY: Univ. of Rochester Press.

Deffeyes, K. S. (2008). Hubbert's peak: the impending world oil shortage (New Edition). Princeton University Press.

Goodstein, D. L. (2005). Out of gas: The end of the age of oil. New York., NY: W.W. Norton.

Heinberg, R. (2005). Party's over: Oil, war and the fate of industrial societies. Gabriola Island: New Society.

Karl, T. L. (1997). The paradox of plenty: Oil booms and petro-states. Berkeley: University of California Press.

Klare, M. T. (2004). Blood and oil: The dangers and consequences of America's growing petroleum dependency. New York: Holt.

Roberts, P. (2005). The end of oil: On the edge of a perilous new world. Boston, Mass. [u.a.: Houghton Mifflin.

Ross, M. L. (2012). The oil curse: How petroleum wealth shapes the development of nations. Princeton, N.J: Princeton University Press.

Stoff, M. B. (1982). Oil, war, and American security: The search for a national policy on foreign oil, 1941-1947. New Haven [u.a.: Yale Univ. Pr.

Venn, F. (2002). The oil crisis. London [u.a.: Longman.

Ebel, R. E. (2002). The Geopolitics of Energy into the 21st Century. CSIS, Washington DC.