The prologue of Daniel Yergin’s masterpiece “the Prize” begins with the dilemma of Winston Churchill’s, who was the Minister of Navy, about taking a crucial decision about the future of not only British Navy, but also the whole world in the 20th and 21st century.
The decision was using oil instead of coal in the vessels of British Army and leaving the traditional fuel of British Navy in 1911. This decision had two dimensions, first of all England has coal resources to satisfy its navy’s need, but oil as of oil Britain would be dependent to external resources. Moreover, the navy should be reconstructed with a new technology which means an extra economic burden for the Kingdom’s treasury.
On the other hand, engines that would operate with oil would make British Navy more agile and superior against its rivals and mainly Germans in the eve of World War I. Churchil, with his decisive manner operated his plans and the result would be that the world faced with a new Holy Grail that everybody wants to reach for it.
However, it is not fair to relate the power of oil only with the decision of Churchill. May be it would not be wrong to indicate here World Wars in the 20th century caused many sufferings and deaths, but also paved the way for certain discoveries that would dominate our lives today. Urgent needs to become the winner have brought new discoveries and developed the existing tools and machines in an incredible speed.
Computers on the one hand, the great transformation of oil into something more tradable should be indicated here. As known, oil has been known for centuries by the human kind and it was used as medicine, has a holy characteristic and was used as a weapon in the wars. However, until the invention of combustion engine and the electricity, it had a limited area of use. Combustion engine was used in the war machines to be more agile in the battle field both in WWI and WWII. So, the commodification of oil has become a reality in this sense. One thing was certain; the wars would not be the same as it was before. Especially, the airplane which was once described as a good sport by French General Ferdinand Foch (Yergin, p.170) has changed the description of attack and defense in the battle field just as the tank has done.
Invention of plane by Wright brothers, superiority of tanks and motor vehicles made western civilizations, which were the hegemonic powers then more dependent to oil. Thus, controlling oil reserves have become one of the main endeavors of British and German during the WWI and then the other countries afterwards mainly the US. Nevertheless, as mentioned before it was just like a Holy Grail and everybody wants to get it. These were not only nation states, but international oil companies that would have budgets bigger than many other countries have become the reality of our age.
After the World Wars, the borders of the World have changed and Middle East having 2/3 of the whole oil reserves in the world has become one of the main areas of conflict of interest. Turmoil, regime changes and political rivalries have become the main concepts of this geography.
After the World Wars, political system of the world has continued to change. However, in the oil sector two crises were witnessed that directly affected the world economy and habits of common people.
Oil Shocks in 1970s, caused structural changes in economies and mainly questioning the dependence of oil has become. The cost of oil was unbearable and again technological and political changes witnessed. Engines that consume less oil were introduced, International Energy Agency was established and in terms of politics Carter Doctrine was proclaimed by Jimmy Carter in 1980s.
Today, the oil prices are in a trend of increase since 2002. Prices around 20$ have reached to 110$ and this increase negatively affects the countries that are oil poor. On the other hand, accumulated petro-dollars are one of the main interests of many people. However, one of the most discussed problems, but least cared problems is global warming that causes climate changes in the earth. Carbon emissions that emerge due to transportation are among the main resources of greenhouse effect. The engines consume oil and once helped humankind to win wars (or caused losing wars), helps to killing our home slowly. Moreover, the negative effects of oil and gas drilling on environment should be mentioned here.
In spite of its negative effects, today, oil is still one of the indispensable commodities of the world economy. Its political, economic, social and environmental effects are going to be discussed as being responsible of changing 20th century. In the 21st century, it still preserves its importance in the first decade. However, these price hikes and discovery of new technologies as a solution would be remembered with the black gold in the history.
References:
Yergin, D. (1991). The Prize: Epic Quest for Oil, Money and Power. New York: Simon & Schuster.
For Your Comments:
Hasan Selim Ozertem
Editor of USAK Energy Review
hozertem@gmail.com
