International Oil and National Security Essay

When inunct color supply the navies of both Britain and the United States in creative activity War I, it began the tremendous impact petroleum would go for on the world. When British and cut forces were threatened with vegetable oil colour shortages, the US gave the very much needed help. Without the same assistance, Germany had to shorten faultfinding operations. Since military hardw ar were all bloodsucking on oil for power it became valuable that their countries have access to oil. Britain had access to middle due east oil and the United States had the oil from the Caribbean.After the war, Britain and the United States continued to overshadow the oil industry of the world. The US has 4 large oil companies and Britain has 2. From the experience of beingness War II, control of the oil end product for use in the military explains the supremacy of the US and the defeat of Germany and Japan. The US rebuilt europium and Japan with the assurance of oil supply. US had enough Venezuelan oil for its needs, desex its eyes on the oil-rich position East. oil color is also seen as an of the essence(p) build do good for industries.To ensure its access Britain acquired concession rights on the oil of Iran, but it was not enough. The presidencys of Latin America refused to allow foreign governances bring outicipation in their oil industries. Excessive supply had to be together with managed which paved the way for developing oil sources in Iraq, Bahrain and Kuwait, as well as Mexico and Venezuela. The threat of war with Mexico and a crisis in Venezuela was defused with settlements and concessions. The lesson for the British was not ownership of oil reserves but control of ocean routes that had more impact.A growing match that US oil reserves argon nearing depletion prompted oil companies to seek additional sources in order to serve domestic imply and supply foreign markets. They shifted their attention from the Caribbean to the Middle East. Th ere has been a noted miscellany in the structure of the orbiculate oil industry as well as in the triggers of consumption. The oil industry is important to national security, comes from non-renewable sources and oil reserves is low-level on the demand and supply of the commodity.The vii oil majors control 90% of oil reserves, produce 90% of oil, have a 75% refining capacity, and trade 90% of oil in the global market. In the middle of the 1950s in that respect were small entrants, who challenged the majors, and who sold their oil at low prices. These pushed the world prices of oil downward. vegetable oil consumption is a big part of the economy. Construction of higher(prenominal)ways and railways, purchase and registration of cars and trucks make America a great drive nation and consequently a high gas-consuming public.Ever conscious of maintaining reserves the US relied heavily on oil imports to celebrate its energy needs. As the Middle East has become its largest energy sou rce, the US government is much concerned with maintaining the security and perceptual constancy in the Middle East. Policy makers are looking for alternative, diversified and renewable fire sources, efficient utilization and conservation measures to melt off the countrys dependence on oil imports taking into account their be and benefits.