• Skip to primary navigation
  • Skip to main content
  • Skip to footer
  • Home
  • About
    • Editorial Staff
      • Bryan Strawser, Editor in Chief, Strife
      • Dr Anna B. Plunkett, Founder, Women in Writing
      • Strife Journal Editors
      • Strife Blog Editors
      • Strife Communications Team
      • Senior Editors
      • Series Editors
      • Copy Editors
      • Strife Writing Fellows
      • Commissioning Editors
      • War Studies @ 60 Project Team
      • Web Team
    • Publication Ethics
    • Open Access Statement
  • Archive
  • Series
  • Strife Journal
  • Strife Policy Papers
    • Strife Policy Papers: Submission Guidelines
    • Vol 1, Issue 1 (June 2022): Perils in Plain Sight
  • Contact us
  • Submit to Strife!

Strife

The Academic Blog of the Department of War Studies, King's College London

  • Announcements
  • Articles
  • Book Reviews
  • Call for Papers
  • Features
  • Interviews
  • Strife Policy Papers
    • Strife Policy Papers: Submission Guidelines
    • Vol 1, Issue 1 (June 2022): Perils in Plain Sight
You are here: Home / Archives for United States

United States

Until the last drop (…of oil)

December 2, 2014 by Strife Staff

By Eugenio Lilli:

Photo: Carsten ten Brink (creative commons)
Photo: Carsten ten Brink (creative commons)

Eight percent: that is how much the price of oil fell after OPEC’s decision last Thursday to maintain its oil output unaltered. This sharp drop was only the latest development in a trend that has seen oil prices on the world market tumble by nearly 40 percent since mid-June. At one point, the international crude benchmark even traded below $70 a barrel, the lowest since May 2010.

The current situation is the result of a combination of factors. On the one hand, a slowdown in the Chinese and European economies has led to a decrease in demand for oil. On the other hand, the so-called “fracking revolution” in the United States, added to an ahead-of-target OPEC production, has generated an increase in oil supply.

Despite a clear situation of overproduction, and repeated calls for a cut, OPEC, and especially Saudi Arabia, decided to keep its production ceiling unchanged. Given the undeniable strategic importance of oil for modern economies, such a decision is likely to have far-reaching implications. Here, we limit our discussion to the relationship between Saudi Arabia and the United States: a time-honored relationship that has come under pressure recently due to openly divergent opinions over events like the Arab Awakening and US-Iranian nuclear negotiations.

Experts have given several interpretations of Saudi Arabia’s decision to convince OPEC to adopt a policy that contributes to the ongoing fall in oil prices. Two of these are particularly worth noting.

The first interpretation depicts Saudi Arabia’s decision as being in line with US interests in the region. According to this view, Saudi policy to keep the price of oil low is part of a wider strategy to help the United States put meaningful economic pressure on Russia. In fact, according to the Financial Times, Russia needs to sell oil at a price of at least $110 a barrel to guarantee stability to its economy and financial system. An oil price at $70 a barrel therefore has the potential to further slow Russia’s embattled economy, since around half of the country’s annual budget revenue comes from oil and gas exports.

The current decline in oil prices has also affected the value of the Russian currency – the ruble. Since the beginning of the year, the ruble has weakened by 34% against the US dollar. A weak ruble makes it harder for Russian companies – including the energy giant Rosneft – to pay the interest on their foreign debts. In other words, by keeping oil prices low Saudi Arabia is actively contributing to the Obama administration’s effort to rein in a recalcitrant Russia.

A second interpretation takes the opposite view and describes Saudi Arabia’s decision as a foreign policy tool to test US shale production. According to this interpretation, a policy of cheap oil is primarily aimed at challenging US shale operators and driving out the highest-cost producers. In fact, the break-even price required for shale oil developments in the United States ranges between $40 and $115 a barrel. A Saudi strategy for a long period of low prices may therefore push many US producers out of the market and slow down the development of these new energy sources. In other words, Saudi Arabia may be assertively resisting the US’ steady rise to being the world’s top oil producer.

Certainly, the above interpretations are not mutually exclusive. In fact, the Saudis could be cooperating with the Obama administration against Putin while, at the same time, they could be challenging the United States for supremacy in the global oil market. However, a Saudi policy mainly based on a rationale of “cooperation” instead of one of “competition” could be a revealing sign of where the US-Saudi relationship is heading.


 

Eugenio Lilli is a PhD Candidate at the Defence Studies Department, King’s College London. His research focuses on US foreign policy toward the Greater Middle East, in particular on the Obama administration’s response to the Arab Awakening. Eugenio is also the founding chairperson of the King’s College London US Foreign Policy Research Group. You can follow him on Twitter @EugenioLilli

Filed Under: Blog Article Tagged With: crude, fracking, Oil, OPEC, Saudi Arabia, United States, us

Why failures in American leadership endanger peace

November 16, 2013 by Strife Staff

by Avram Lytton

The UN Security Council in session
The UN Security Council in session
(photo by Pete Souza)

Whether we like it or not, we live in a relatively stable time thanks to the presence of a single hegemonic super-power – the United States. Its political, military and economic power (current political dysfunction aside) remains unrivalled in its totality. It is therefore disheartening to see this power and clout squandered by the current administration in its failures and capitulations over Syria and Iran.

In Syria, what started as a protest movement against the corrupt and oppressive Assad regime has escalated into a chaotic civil war. Rather than attempt to support moderate rebel factions, the Obama administration dithered and misrepresented the extent of aid it was providing. Even worse, it effectively vetoed additional aid from regional powers who, in the absence of a more concerted effort, have had great difficulty coordinating actions or even agreeing on a strategy. The result has been an ever worsening, and widening war that has not only devastated the Syrian state, but has also radicalised the opposition to an alarming degree and provided safe havens for jihadist groups. The Assad regime, with substantial aid from its ally, Iran, has even regained the momentum it was once thought to have lost.

When the Assad regime began using chemical weapons on a small scale, the Obama administration did nothing. When it deployed those weapons on a larger scale on August 21, it seemed that, at last, the President would respond to the crossing of his ‘red line’. Instead, the world was treated to a darkly comic series of missteps and blunders. When it appeared that no action would be taken, a deal was brokered by Russia. This deal, however, is not the happy ending it appears for two key reasons. First, as it relies on the Syrians to do most of the work, overseen by personnel from the Organization for the Prohibition of Chemical Weapons (OPCW), it is predicated on the survival of the Assad regime for however long it takes to complete. Secondly, because of the nature of the agreement, it will be relatively easy for the regime to retain some of its CW deterrent through deception. Thus, the United States has been removed as a player in Syria, split from its allies and discredited. Meanwhile, Vladimir Putin has emerged as the world’s leading statesman.

On the Iran front, the United States looks poised (at the time of writing) to strike a bad deal that could see Iran given an economic lifeline while the international community receives nothing meaningful in return. The heart of the problem is that diplomacy relies on there being room for a deal to be made that is acceptable to both sides. The ultimate objective of the international community, in particular Israel and Saudi Arabia, is the cessation and rolling back of the Iranian nuclear program. However, the Iranian regime has made it clear that it will never cease enriching uranium, even if its people suffer for it under sanctions. Negotiations for the sake of negotiations simply obfuscate the issue.

Yet, in all this, it is the Americans who seem the most keen to reach a deal, any kind of deal, as quickly as possible. Sanctions are hurting the regime and, if drawn tighter, may lead to its collapse. The White House, however, seems more interested in removing itself from the region than in regime change and is even opposed to tighter sanctions, lest they hurt diplomacy. To the United States, Iran is a distant and theoretical threat, but to countries in the Middle East it is a very real menace. No wonder then that the Israelis are furious; no wonder that the Saudis, already angered over American inaction in Syria, are threatening to break ties with the United States.

Unending war in Syria and a massive regional mobilisation of radical elements is in no one’s interest. Also unappetising is an advancing Iranian nuclear program, bolstered by better and more numerous centrifuges while the regime is strengthened by weakened sanctions. Let us not forget, that not only does this regime have a long history of sponsoring terrorism in other countries, but it also relies on its hostility to Israel and the West to legitimise its governance. The United States, by negotiating for a compromise with Iran and avoiding influencing the proxy war in Syria, is simply punting these security issues to the next administration.

None of the above is leadership; it is risk avoidance. War is a last resort, to be sure; it is a last resort in Syria, not least because of the greatly uncertain outcome, and it is a last resort with regards to the Iranian nuclear program. However, broadcasting one’s lack of seriousness about the use of force, whether through an evaporating red line or through a rushed and dubious deal with the untrustworthy Iranian regime, does not avoid war. Indeed, by horse trading with Iran rather than dictating, the international community has given the regime in Tehran a legitimacy it does not deserve and a sense of power it has not earned. It has also left the final say to a number of regional powers who feel far more threatened than Washington does, and may not feel as restrained when they react to that threat.

Approaching the 100th anniversary of an infamous act of terrorism in the Balkans, one should reflect on what events a small power can set in motion when tensions are left to simmer in a multi-polar environment. It is the power of the United States that underwrites and maintains the current international system and restrains the behaviour of the smaller powers. If the US is retreating from its position as de facto world policeman, then I fear that the peace we enjoy may soon disappear with it.

Filed Under: Blog Article Tagged With: Iran, Syria, U.S., United States

The Day After Tomorrow

November 12, 2012 by Strife Staff

By Maura James

Finally, after a brutal campaign season the United States has peacefully re-elected the forty-fourth president of the United States.  From four-year olds in the swing state of Ohio to grandmothers in the red state of Texas there is one fact over which all Americans are rejoicing this week – the campaign, including the relentless attack adds sponsored by super PACs, is over!  The world can be thankful that the victory was decisive enough that we do not have to listen to Wolf Blitzer and Martin Bashir explain the difference between the popular vote and electoral college vote in a multitude of confusing ways while the outcome of the elections hangs in the balance of the Supreme Court for days (circa 2000).

In the aftermath of the Obama/Romney campaign the world should remember that America is a country of issues, and every first Tuesday in November Americans do not just vote for elected officials but also state measures.  This year was no exception, and though over shadowed by the presidential race, there were some pretty big issues on the ballot.  In my home state of Maryland everything from same-sex marriage to increased gambling was in the hands of voters.  In addition to same-sex marriage, on many ballots this year, was medical marijuana, assisted suicide, death penalty repeals, mandatory health care repeals, and illegal immigrant reform.  I will briefly recap results of some issues here.

Washington State, Minnesota, Maryland, and Maine all had same-sex marriage measures on the ballot.  Washington, Maryland, and Maine voted to legalize same-sex marriage, while Minnesota narrowly failed to pass an amendment banning same-sex marriage.  In all states the vote was close, with a gap of four or five percentage points in most states.  Legislative bans, similar to the Minnesota ban on same-sex marriage, are a current popular trend in US state legislatures.  It allows states to pre-emptively illegalize social measures or, in the case of healthcare, federal government mandates.  Later legislatures can reverse laws put into place by these bans, and issues can be taken to court to overturn the ban.

A large state issue this year was health-care with five states voting on mandatory health care bans or measures.  With Obamacare slated to begin in 2014, this was an important issue not just for state citizens but for the president to watch as well.  The results were mixed.  In Florida the measure to reject mandatory insurance was narrowly turned down.  With a large elderly population, it seems that voters were convinced seniors would be safe and perhaps benefit from the Obama healthcare reforms.  In Missouri, Alabama, and Wyoming mandatory healthcare was rejected by a strong majority.  This will make 2014 all the more interesting since states have put measures in place today to prevent federal health care intervention.

Though the DREAM act to allow children of illegal immigrants, many of whom were brought into the United States as babies, to receive services and funding for higher education has been shot down in the federal congress many times, states took the issue to the polls this past Tuesday.  Maryland narrowly passed legislation to allow children access to funds for university if they have served in the military and/or attended two years of community college.  Whereas Montana overwhelmingly passed a bill that denies illegal immigrants basic services and subsequently forces many of them to choose to leave the state or country.

These ballot measures, though rarely covered by international media especially during a presidential campaign, are barometers of the nation.  When many pundits and theorists claim populations are moving to extremes, these issues offer concrete evidence of where a state and nation stand.  Seeing how close many of these votes were suggests the American public is more in the middle than the world usually thinks.  Looking at state-by-state results gives legislators an idea of how difficult it will be to find compromise in Washington.  Better than any presidential vote, these issues offer a window into American politics and the way the nation is headed in the next four years.

To see an interactive map of all the election results from Tuesday and the specific map on ballot issues used as a reference in this article go to Politico.

Correction: November 13th, 2012
The original version of this article stated that Minnesota passed a ban on same sex marriage. This amendment did not pass.

Filed Under: Blog Article Tagged With: Maura James, The Day After Tomorrow, United States

  • « Go to Previous Page
  • Go to page 1
  • Interim pages omitted …
  • Go to page 3
  • Go to page 4
  • Go to page 5

Footer

Contact

The Strife Blog & Journal

King’s College London
Department of War Studies
Strand Campus
London
WC2R 2LS
United Kingdom

blog@strifeblog.org

 

Recent Posts

  • Climate-Change and Conflict Prevention: Integrating Climate and Conflict Early Warning Systems
  • Preventing Coup d’Étas: Lessons on Coup-Proofing from Gabon
  • The Struggle for National Memory in Contemporary Nigeria
  • How UN Support for Insider Mediation Could Be a Breakthrough in the Kivu Conflict
  • Strife Series: Modern Conflict & Atrocity Prevention in Africa – Introduction

Tags

Afghanistan Africa Brexit China Climate Change conflict counterterrorism COVID-19 Cybersecurity Cyber Security Diplomacy Donald Trump drones Elections EU feature France India intelligence Iran Iraq ISIL ISIS Israel ma Myanmar NATO North Korea nuclear Pakistan Politics Russia security strategy Strife series Syria terrorism Turkey UK Ukraine United States us USA women Yemen

Licensed under Creative Commons (Attribution, Non-Commercial, No Derivatives) | Proudly powered by Wordpress & the Genesis Framework