By Prof. Gawdat G. Bahgat
The usa is the world's biggest oil purchaser and importer. right here Gawdat Bahgat examines the nation's transforming into dependence on fossil fuels--particularly oil--and the most demanding situations it faces in securing offers from energy-rich areas, the Persian Gulf and the Caspian Sea. He argues that long term U.S. strength technique needs to be equipped on variety of either the gas combine and the geographic starting place of that gasoline. it may contain a huge mix of measures that will stimulate family creation, offer incentives for conservation, advertise fresh applied sciences, and do away with political obstacles to international markets.
Bahgat additionally contends, besides the fact that, that the target shouldn't be power independence, yet discovering new methods of coping with dependence on oil provides from in a foreign country. He continues that regardless of expanding reservoirs of oil and typical gasoline through the global, together with the Caspian Sea, the Persian Gulf will remain the most resource of U.S. fossil gas. Bahgat analyzes either fresh and old demanding situations to the connection among the us and Saudi Arabia, the world's biggest oil manufacturer and exporter, together with the Arab-Israeli peace method. He additionally discusses the hostility among the USA and Iraq and the demanding dating among the us and Iran, together with such delicate themes because the proliferation of guns of mass destruction and terrorism, in addition to advancements within the wake of September eleven, 2001.
In his review of the underdeveloped Caspian Sea reservoir, Bahgat means that power specialists and coverage makers have exaggerated the region's strength, bringing up logistical, fiscal, and political hindrances that has to be triumph over ahead of the sector performs a huge function in generating fossil fuels. those hindrances contain household ethnic divisions, disputes over the felony prestige of the Caspian, disagreements over the main inexpensive transportation routes, and adjustments within the area within the aftermath of the struggle on terrorism.
Gawdat Bahgat, director of the heart of heart japanese reports at Indiana college of Pennsylvania, is the writer of The Gulf Monarchies: New financial and Political Realities; the way forward for the Gulf; and The Persian Gulf on the sunrise of the hot Millennium.
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Additional resources for American Oil Diplomacy in the Persian Gulf and the Caspian Sea
Given all these advantages, all indicators point to increasing reliance by oil-importing countries on Gulf producers. S. 3. gov. 3 illustrates. The Persian Gulf’s share in the net oil imports of industrialized countries has risen since the mid-1980s. This can be explained by the sharp decline of oil prices early in the decade. In other words, after almost ten years of volatile and high oil prices, the oil glut of the 1980s, which stabilized prices at a relatively low level, has contributed to deepening dependence of American and world economies on oil supplies from the Persian Gulf.
In addition, Brussels would like to diversify the sources of its energy and reduce its dependence on one or a few suppliers. Finally, Europe has the financial resources, managerial expertise, and sophisticated technology that Russia needs. The two sides have agreed that investments will have to be made by private companies. Therefore, the role for the EU and Russian governments is to create the right legal framework for foreign investment in Russia. In order to increase Russia’s ability to export oil and gas to Europe, several pipeline schemes have been proposed, negotiated, and built.
Consequently, the region is a relatively high cost producer. On the other hand, the region’s political stability and its geographical proximity to major European consumer markets have allowed it to play a major role on the global energy scene. 3 Despite these advantages, the North Sea is increasingly incapable of satisfying European oil and gas needs. Sophisticated technology has extended the possibilities for extracting oil from older or small wells or from difficult sites, but the whole reservoir is considered to be increasingly “mature,” with few large discoveries likely to be made.
American Oil Diplomacy in the Persian Gulf and the Caspian Sea by Prof. Gawdat G. Bahgat