Download Iran Oil: The New Middle East Challenge to America by Roger Howard PDF

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By Roger Howard

The U.S. sees itself as being locked right into a disagreement with Iran, its number 1 enemy because the invasion of Saddam Hussein's Iraq. yet, as Roger Howard argues during this compelling and provocative new booklet, by means of trying to isolate Iran, the USA may well in reality be undermining its personal strength. For if the USA forces the remainder of the realm to select from Iran and the US, Iran has a trump card to play: the various greatest deposits of fuel and petroleum on this planet. With international strength calls for at an all-time excessive and provides turning into more and more inaccessible, Iran's oil and fuel have already began to trap former US allies equivalent to Pakistan and India clear of American impact. Over the subsequent decade, Iran's strength offers glance set to significantly reformulate the protection and diplomatic relationships of Asia and the center East. additionally, due to US exchange embargoes on Iran, it's only the US's competitors, akin to China, who're capable of absolutely take advantage of Iran's usual assets, hence powering a brand new alliance of nations on the way to act as a counterweight to US worldwide strength. through pursuing this kind of adversarial schedule to a rustic with a lot petro-clout, the United States is, in line with Howard, writing its obituary because the world's merely superpower.

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Example text

28 Increasing global demand for oil and gas The world’s growing need for Iran’s oil and gas reflects both increasing global demand as well as the diminishing capacity of many existing sources of supply to satisfy those demands in the long term. This lack of confidence in the capacity of existing sources partly reflects the fact that the world’s oil reserves, even if they are consumed at a steady rate, are becoming increasingly inaccessible. So although Saudi Arabia, like all the other Gulf states, still harbours vast deposits of oil, some of which are perhaps still undiscovered, billions of dollars would need to be invested in its infrastructure if these reserves are to be tapped.

On the one hand, such an arrangement gives the contractor no incentive to incur extra costs, thereby improving total returns for such a project, or to maximize the life of the field in question beyond the limited time-span of the contract. The terms of these contracts are also highly inflexible and cannot be renegotiated, even though this is particularly important if new oil and gas deposits are unexpectedly discovered, unanticipated technical problems arise or the price of oil suddenly changes.

18 So from a glance at its history, it is clear that Iran’s possession of such immense natural resources has always had very powerful repercussions, both 18 IR AN OIL within and outside its own borders, and this means that there is clearly no novelty in the assertion that there is, in its own right, a discernible ‘politics of energy’: it is self-evident that any country’s possession of such resources of oil and gas has such strong political repercussions in the same way as the possession of any other valuable asset.

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