Get ready for the last oil war

by frog

As you would expect, such a title had to pique my interest. But this article over at Energy Bulletin proved irresistible, despite its dense language. While I am not entirely convinced that an all-out total war for oil, centred around Iran and triggered by their nuclear ‘crisis’ is inevitable, it is hard to articulate a rebuttal to the arguments presented. Here are a few snippets:

Pre-emptive war against Iran, under the easy-to-communicate pretext of stopping Iran from developing atomic weapons capability, is surely an attractive rationale for certain US, Israeli, European and other Great Power strategists as oil prices move towards 150 USD/barrel. During economic recession, as proven in the ‘Cheap Oil interval’ of 1986-2000, surely heightens ethnic tension between Chi’ite and Sunnite communities in the GCC countries. The rising likelihood that 150-dollar oil can trigger global recession underlines this economic pre-emptive rationale for war against Iran.

Even before the overthrow of Shah Pahlavi by the Khomenei-led revolution of 1979, the country’s oil discovery/production indicators showed that Iran was heading towards that day – then a long way in the future – when it would cease to export oil. One consequence was the entirely ‘classic’ economic decision to develop civil nuclear electricity production. As amply proven by India and Pakistan, South Africa and Argentina, and most recently by North Korea, and the real basis of ‘civil’ nuclear energy in the USA, France, UK, Russia, China and Israel, so-called ‘civil’ nuclear energy enables nuclear weapons production. Civil nuclear, and military nuclear are seamless, whatever the NPT and the IAEA might like to suggest or propose.

In those two paragraphs are the crux of the issue, at least as far as the Iranian crisis goes. It was a perfectly rational economic decision for Iran to want to develop nuclear capabilities in order to offset the looming decline in the country’s ability to power itself. Such development takes decades. On the other hand, we all know that there is no actual difference between civil and military nuclear development. There is no economic justification for civilian nuclear unless a military justification is factored in. Nuclear is just too expensive and too risky, unless you weigh the economic costs of military risks, which then offset any purely ‘civilian’ nuclear economic losses. (That is why nuclear will never be a rational economic choice for New Zealand)

When the great powers of today, almost all of whom are net oil importers in possession of nuclear arsenals and rapidly deployable armed forces, line up to divide the spoils of the last pots of cheap oil, the stage is set for an unholy conflagration. I just hope the author is wrong with his assertion that such a war is inevitable.

frog says

Published in Environment & Resource Management by frog on Sun, July 20th, 2008   

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