International Relations: Impact of oil on international Relations

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Importance of oil in the world of today and International Relations.
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1. Importance of oil in the world of today and International Relations.

(a) Increased output of oil over the last thirty years.

(b) Essential means of economic development (c) Price-hike affects the International Relations.

2. Middle-East countries and Gulf States targets producers of oil. Foreign companies’ market and distribute it:

(a) Production controlled and prices fixed by certain oil producing countries to safeguard their own interests.

(b) Formation of OPEC.

3. Oil a justified political weapon in the context of Israel aggressive policies

4. Economic development of nations bound with availability of oil.

5. Oil and developing countries like Pakistan.

6. Conclusion.

Oil has come to play a very important role in the modern world.  When a day passes without oil being in the news. The world’s oil industry is the world’s leading industry in size. And is may be the only international industry which concerns every country in the world.

The output of oil has steadily increased over the last thirty years and was replaced the older form of energy sources like coal and wood. In 1960, one thousand million tons of crude oil was produced and in 1980 production leaped up to three thousand million tons.

The forecast for late 1980s is still higher. However, in 1973, as a result of the Arab-Israel war and the Palestinian question, radical changes took place in the outlook for the future production and use of oil.

A situation developed which soon came to be known as the olL CRISIS.

Only the Arab countries are biggest oil producing and oil exporting countries in the world. USA. Europe and many other countries of Africa and Asia are dependent on Saudi Arabia, Libya.

Iran and the Gulf States for the supply of oil. The work of oil exploration, marketing and transport has however, remained in the bands of foreign companies. Mostly Dutch, American and British.

In the years following World War II, the oil producing countries have become more and more aware of their fundamental national interests. Also, they tailored the production and prices of oil to suit their own purpose. This state of mind led to the formation of OPEC Organization of Petroleum Exporting Countries. Which works in union of the price of crude oil.

Apart from economic interests, the change in the oil policy of Arab nations has also been dictated by political compulsions in international Relations The chief irritating factor is the existence of Israel which is in the heart of the Arab world. The Arab Israeli conflicts of 1956, 1967 and 1973 and the U. S. involvement on the Israel side on each occasion has made it clear that counter.

Aware of the reliance of us. on oil outputs from the Middle East. The Arab oil producing nations in 1973 used oil as a means of bringing pressure to bear on US A. to discontinue its pro-Israel policy.

They announced a complete embargo on all oil sales to the United States and other countries which were willingly helping Israel in its battle against Arab nations. Oil became a successful economic and political weapon in the struggle and continues to be so today action.

Since World War II oil has made a visible impact on international relations and the economic development of the world. At the purely political level the inter-relationship of oil and the changing fortunes of the Middle East have made breadlines on many occasions. The ban on oil to u. s.and Europe had several Serious Consequences. It gave rise to increased prices to enable the companies to cover increased costs arising from their need to buy oil from more expensive areas. And from the longer tank journeys required for M-E oil round the Cape of Good Hope.

Consumer countries felt the pinch and soon exerted intense diplomatic pressure to restrain Arab nations from using oil as a political weapon.

Moreover, owing to low oil prices in the past, advanced counties had replaced coal with oil as the dominate industrial fuel.

Motor transport had grown rapidly in importance and was dependent on oil products. It resulted in a major break-down. Euro-American interest in the affairs of oil producing countries is, therefore, quite understandable.

Apart from highly industrialized States, developing countries too are dependent on oil. They are aiming at rapid economic development and face the need to increase their oil supplies very quickly. I, the absence of alternative energy sources. Countries like Pakistan share interests in common-over the oi) price question, for example-with the consumer of Western Europe and Japan.

Sitting on the borders of oil empires, it has to grope its way very carefully through the complex world of oil. Compared to top industrialized countries, the per capita use of energy in Pakistan is fairly low. It may be noted in this context that very often under development and a lo use of energy go hand in hand with growing emphasis on development and food production.

And the establishment of industries to make use of the country’s resources, it is evident that the demand for fuel and power has begun to rise rapidly the presence of natural gas and reservoirs of oil in Baluchistan are a pond comes. But only time will tell if they are Largs enough to offset our wholesale dependence on foreign supply.

Without she discovery of energy resources, the development pf any country is got possible and this is evidently true of Pakistan as well. The oil hunt on; oil and gas exploration work are in full swing.

The future of oil will continue to be conditioned by the political and economic interests of oil producing and oil consuming countries.

Political tensions which lead to war are dangerous, the rush policies of Some states the question of the Palestinian refugees are pressing problems and pose a threat to peace in the Middle East.

These issues, if resolved, will go a long way in stabilizing prices and improving the marketing and distribution of oil.

Sajid Saleem
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Sajid Saleem

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