| Pub. Date | : April, 2023 |
|---|---|
| Product Name | : The IUP Journal of International Relations |
| Product Type | : Article |
| Product Code | : IJIR030423 |
| Author Name | : Mumtaz Ahmad Shah |
| Availability | : YES |
| Subject/Domain | : Arts & Humanities |
| Download Format | : PDF Format |
| No. of Pages | : 13 |
The world order is in flux and so is the geopolitics of the global energy market. Traditionally, the global energy market and the Middle East politics were shaped by the US military and petro-dollar nexus. However, the world has entered the post- America era, with China and Russia emerging as the new global powers in the Middle East and major players in global energy market. In this backdrop, the study explores the changing pattern of global politics and its implications for the global crude oil and gas market.
Crude oil has been one of the few natural resources which influence global
geopolitics. This is why oil is called 'Black Gold'. There is no better way to understand
the geopolitics of oil than the Middle East. One of the goals of European colonization
of the Middle East and invasions was to secure access to the Gulf oil reserves. The
'seven sisters' became the buzzword to refer to western oil companies' dominance
over the global energy market.1 The major energy market outside the Western sphere
of influence was former Soviet Union. Energy resources remained the backbone of
the Soviet economy in the 1970s. Moscow's total energy-production grew from 10.25
million barrels per day (mbd) in 1960 to 27.58 million barrels in 1980.2
Back then, the global West had military presence in the Gulf region and had
technology to extract and market the crude oil. So the Gulf's ruling pro-West
monarchies partnered with the Western companies. Prior to oil income, the Middle
East exhibited the lowest levels of socioeconomic development in the world. The
extraction of hydrocarbon resources gave the Gulf region in particular a means to
economic growth. The flip side of the oil revenue was that states achieved autonomy
from social demands and brought loyalty of people by accommodating them in the
public sector and providing lofty welfare services.3 Consequently, the Middle East