US views oil as power, instead of oil as energy
As a result of crude oil price increases, the world is in the throes of severe energy crisis. Pressure to mitigate the crisis is unprecedented upon all governments across the world. And it has to be, for oil prices have shot up by a mind-boggling 900 percent in the past one decade, defying all sorts of political promises, economic explanations and demand forecasts! In fact, Goldman Sachs has reported that per-barrel price would touch the USD 200 mark in the next two years. As such, global dynamics has been changing in favour of the select oil-producing economies and if Goldman Sachs projections are any true, it would only add to the pace of it.
With ever-accentuating oil prices, nations are not only facing general rise in food prices and other consequential inflationary burdens, but more than that, the eventual shaping of the new world order is a matter of graver concern. The first concerns with the fact that with rising prices it is not just that the wealth of the oil-producing nations that has been increasing but along with that, their prominence in the global scene has also gone up. And much to the dislike of the US, most of these economies have not been having the most amiable sort of political relationships—like Russia, Venezuela and Iran, except for Saudi Arabia. In fact, it is reported that six nations in the Gulf region have accumulated a monumental wealth of around USD 95 trillions. And it is obvious that with so much wealth in hand, they have been on a buying spree. Much of the Arab wealth has been directed towards acquisitions in large multi-national banks and more so at a point in time when they have been reeling under the sub-prime crisis. In fact, banks like Citibank have been literally bailed out by the Arab money, and there have been growing concerns in terms of the growing influence in these banks and other controlled firms. On the other side, Venezuela, much to the dislike of the US has been utilizing the fund for various social initiatives, not only within the country but also in the region as a whole. As far as Iran is concerned; anything said now would sound clichéd as the world knows the growing hostility between US and Iran. And finally, there is Russia, which is not only earning its wealth through oil but also by selling its arms to all enemies of the US.
In this scenario, if the prices of oil further go up, it puts the US in a more difficult situation, as an ‘Unanticipated Consequence’ and there are high chances that it might as well throw the US unipolar dominance out of gear. And there is no doubt that for sometime now, neither the world nor the US is habituated to a multi-polar world; any move towards it could be catastrophic!! Not to forget that the world has already been audience to Iraq! And going by precedence, the US would leave no stone unturned to retain it even if it means going for another round in the Middle East (against Iran in lieu of Iraq this time) or might invent a few new enemies in any part of the world to do whatever it takes to keep the world in turmoil. After all, it is then only, i.e., in times of global turmoil that its hegemony remains unchallenged.
As a result of crude oil price increases, the world is in the throes of severe energy crisis. Pressure to mitigate the crisis is unprecedented upon all governments across the world. And it has to be, for oil prices have shot up by a mind-boggling 900 percent in the past one decade, defying all sorts of political promises, economic explanations and demand forecasts! In fact, Goldman Sachs has reported that per-barrel price would touch the USD 200 mark in the next two years. As such, global dynamics has been changing in favour of the select oil-producing economies and if Goldman Sachs projections are any true, it would only add to the pace of it.
With ever-accentuating oil prices, nations are not only facing general rise in food prices and other consequential inflationary burdens, but more than that, the eventual shaping of the new world order is a matter of graver concern. The first concerns with the fact that with rising prices it is not just that the wealth of the oil-producing nations that has been increasing but along with that, their prominence in the global scene has also gone up. And much to the dislike of the US, most of these economies have not been having the most amiable sort of political relationships—like Russia, Venezuela and Iran, except for Saudi Arabia. In fact, it is reported that six nations in the Gulf region have accumulated a monumental wealth of around USD 95 trillions. And it is obvious that with so much wealth in hand, they have been on a buying spree. Much of the Arab wealth has been directed towards acquisitions in large multi-national banks and more so at a point in time when they have been reeling under the sub-prime crisis. In fact, banks like Citibank have been literally bailed out by the Arab money, and there have been growing concerns in terms of the growing influence in these banks and other controlled firms. On the other side, Venezuela, much to the dislike of the US has been utilizing the fund for various social initiatives, not only within the country but also in the region as a whole. As far as Iran is concerned; anything said now would sound clichéd as the world knows the growing hostility between US and Iran. And finally, there is Russia, which is not only earning its wealth through oil but also by selling its arms to all enemies of the US.
In this scenario, if the prices of oil further go up, it puts the US in a more difficult situation, as an ‘Unanticipated Consequence’ and there are high chances that it might as well throw the US unipolar dominance out of gear. And there is no doubt that for sometime now, neither the world nor the US is habituated to a multi-polar world; any move towards it could be catastrophic!! Not to forget that the world has already been audience to Iraq! And going by precedence, the US would leave no stone unturned to retain it even if it means going for another round in the Middle East (against Iran in lieu of Iraq this time) or might invent a few new enemies in any part of the world to do whatever it takes to keep the world in turmoil. After all, it is then only, i.e., in times of global turmoil that its hegemony remains unchallenged.
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