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By Melvin A. Conant

Conant explores how the transformation of oil from a advertisement commodity to a strategic uncooked fabric have replaced the face of worldwide power politics. In an more and more interdependent international, Conant questions the fitting of any kingdom to withold important provides from different international locations.

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Extra resources for Access to Energy. 2000 and After

Example text

Even more consequential is a failure in United States energy diplomacy that has come with the administration's nuclear-fuels policy. Europe, Japan, and a number of LDCs see no other alternative to continuing and increasing energy dependence upon imported-oil supplies largely from the Middle East except by taking the nuclear route. Presently nuclear-power sources outside the communist world depend upon American sources of enriched uranium for nuclear fuel. Dependence on any nation for such critical supply is to be avoided, if possible.

Concession System / 43 The world oil market was then in surplus and the international majors felt compelled to reduce their posted price, which they did unilaterally, without the agreement of producer governments. Because oil agreements had long since moved from a flat government take per ton, in which the governments received a flat fee regardless of actual price or profit, Venezuela and several other countries saw, in the companies' action in reducing the posted price, an immediate threat to their revenues.

In the north the country was occupied by Soviet forces, while in the south the British government moved to reinforce its privileged position. This situation was greatly complicated by the United States, which had propelled itself into Iranian affairs in order to move wartime supplies through Iran to the Soviet Union. The political milieu was further complicated by the close relationships between BP and the British government; BP was perceived by a growing number of Iranian nationalists as the commercial arm of British imperialism.

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