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Oil’s violent geopolitics is often assumed to result from the immense power its natural scarcity affords to those who can control it. Recent developments in global hydrocarbon markets, which saw negative prices on April 20, 2020 have once again put this scarcity myth to bed

In a series of studies that began in late 1980s, economists Jonathan Nitzan and Shimshon Bichler charted the extent to which the world’s leading oil companies enjoyed comparatively handsome rates of returns on equity—well ahead of other dominant sectors within North Atlantic capitalism—when major wars or sustained unrest occurred in the Middle East.

When oil prices began to collapse in the mid-1980s, the major oil companies witnessed a 14-year downturn that was only briefly interrupted once, during the 1990-1991 Gulf War.

The events of September 11, 2001, the launching of the global war on terror and the 2003 Anglo-American invasion of Iraq reversed the fiscal misfortunes of the North Atlantic oil companies in the previous decade. Collectively, they achieved relative returns on equity several orders of magnitude greater than the heyday of 1979 to 1981. As oil prices soared, new methods of extraction reinvigorated oil production in Texas, North Dakota, Pennsylvania and elsewhere. In effect, war in Iraq made the shale oil revolution possible

fracking—not only benefitted from sky-high oil prices, generous US government subsidies and lax regulation, but also the massive amounts of cheap credit on offer to revive the economy after 2008

In response to the Soviet invasion of Afghanistan and the Iran hostage crisis, the Carter Doctrine declared America’s intent to use military force to protect its interests in the Gulf. In so doing, Carter not only denounced “the overwhelming dependence of the Western democracies on oil supplies from the Middle East,” but he also proposed new efforts to restrict oil imports, to impose price controls and to incentivize more fossil fuel extraction in the United States, all in conjunction with solidifying key alliances (Egypt, Israel and Pakistan) and reinforcing the US military presence in the region.[5] In effect, America would now extract geopolitical power from the Middle East by seeking to secure it.

In denouncing certain governments as “pariahs” or “rogue states,” and in calling for regime change, American policy has allowed those leaders to institute permanent states of emergency that have reinforced their grip on power, in some cases aided by expanded oil rents due to heightened global prices

A 2015 report by the Public Accountability Initiative highlights the extent to which the leading liberal and conservative foreign policy think tanks in Washington—the American Enterprise Institute, Atlantic Council, Brookings, Cato, Center for Strategic and International Studies (CSIS), Council on Foreign Relations and Heritage Foundation—have all received oil industry funding, wrote reports sympathetic to industry interests or usually both

For some 50 years, the United States has been able to extract geopolitical power from Middle Eastern oil by posing as the protector of global energy security. The invention of the concept of energy security in the 1970s helped to legitimate the efforts of the Nixon, Ford and Carter administrations to forge new foundations for American hegemony amid the political, economic and social crises of that decade. In the wake of the disastrous US war efforts in Korea and Southeast Asia, Henry Kissinger infamously attempted to re-forge American hegemony by outsourcing US security to proxies like Iran under what is referred to as the Nixon Doctrine. At the same time, regional hegemons would be kept in check by “balancing” competing states against each other.

The realization of Middle Eastern insecurity was also made possible by the rapid and intensive arms build-up across the region in the 1970s. As oil prices skyrocketed into the 1980s, billions of so-called petrodollars went to purchase arms, primarily from North Atlantic and Soviet manufacturers. Today, the Middle East remains one of the most militarized regions in the world. Beyond the dominance of the security sector in most Middle Eastern governments, it also boasts the world’s highest rates of military spending. Since 2010, Middle Eastern arms imports have gone from almost a quarter of the world’s share to nearly half in 2016, mainly from North Atlantic armorers.

For half a century, American policy toward the Middle East has effectively reinforced these dynamics of insecurity by promoting conflict and authoritarianism, often in the name of energy security. High profile US military interventions—Lebanon in 1983, Libya in 1986 and 2011, the Tanker Wars in the late 1980s, the wars on Iraq in 1991 and 2003, Somalia in 1993, Afghanistan since 2001, the anti-Islamic State campaign since 2014 and the Saudi-Emirati war on Yemen since 2015—have received the most scrutiny in this respect, alongside the post-2001 “low intensity” counterterrorism efforts worldwide

cases abound where American policy had the effect of preventing conflicts from being resolved peacefully: Trump’s shredding of the 2015 Joint Comprehensive Plan of Action (JCPOA) nuclear agreement with Iran comes to mind; the case of the Israeli-occupied Palestinian territories and the Moroccan-occupied Western Sahara have likewise become quintessential “peace processes” that have largely functioned to prevent peace.

the myth of authoritarian stability

A year after the unexpected 2011 uprisings, the IMF’s former director Christine Lagarde admitted that the Fund had basically ignored “how the fruits of economic growth were being shared” in the region

What helps make energy security discourse real and powerful is the amount of industry money that goes into it. In a normal year, the oil industry devotes some $125 million to lobbying, carried out by an army of over 700 registered lobbyists. This annual commitment is on par with the defense industry. And like US arms makers,[9] the revolving door between government, industry and lobbying is wide open and constantly turning. Over two-thirds of oil lobbyists have spent time in both government and the private sector.[10]

From 2012 to 2018, organized violence in the Middle East accounted for two-thirds of the world’s total conflict related fatalities. Today, three wars in the region—Syria, Iraq and Afghanistan—now rank among the five deadliest since the end of the Cold War. Excluding Pakistan, the Middle East’s share of the worldwide refugee burden as of 2017 was nearly 40 percent at over 27 million, almost double what it was two decades prior.

profound political and financial incentives are accumulating to address the existing glut of oil on the market and America’s declining supremacy. A major war in the Middle East would likely fit that bill. The Trump administration’s temptation to wage war with Iran, change Venezuela’s regime and to increase tensions with Russia and China should be interpreted with these incentives in mind.

While nationalizing the North Atlantic’s petroleum industries is not only an imperative in the fight against climate change, it would also remove much of the profit motive from making war in the Middle East. Nationalizing the oil industry would also help to defund those institutions most responsible for both disseminating the myths of energy security and promoting insecurity in the Middle East.

Basim Razzo, who survived a 2015 airstrike in Iraq that killed his wife, daughter, and two other family members and destroyed two homes he valued at $500,000, was offered a “condolence payment” of $15,000, which an Army attorney said was the capped limit. Razzo rejected it as “an insult.” But after Italian aid worker Giovanni Lo Porto was killed by a U.S. drone strike that same year while being held hostage by Al Qaeda, the U.S. paid his family $1.3 million as a “donation in the memory” of their son.

Between 2003 and 2006, the Defense Department paid out more than $30 million in solatia and condolence payments to “Iraqi and Afghan civilians who are killed, injured, or incur property damage as a result of U.S. or coalition forces’ actions during combat,” according to the Government Accountability Office. But in more recent years, the sums paid out have plummeted. From 2015 to 2019, for example, the U.S. paid just $2 million to civilians in Afghanistan.

Since at least World War I, the U.S. military has been paying compensation for harm to civilians. During the Vietnam War, solatia payments, as they are called, were a means for the military to make reparations for civilian injuries or deaths without having to admit guilt. In 1968, for example, the going rate for adult lives was $33. Children merited half that.

In March, Sens. Chris Murphy, D-Conn., and Elizabeth Warren, D-Mass., asked Defense Secretary Lloyd Austin to open a new investigation into the airstrike that disabled Al Manthari, as well as 11 other U.S. attacks in Yemen. The Pentagon did not respond to repeated requests for comment on what actions, if any, Austin has taken in response to the request. In a letter to Murphy and Warren shared with The Intercept, Colin H. Kahl, the Pentagon’s top policy official, did not even address the issue of new investigations.

The total cost exceeded $21,000. The average per capita income in Yemen is around $2,200.

The U.S. has conducted more than 91,000 airstrikes across seven major conflict zones and killed as many as 48,308 civilians, according to a 2021 analysis by Airwars, a U.K.-based airstrike monitoring group. But only a tiny fraction have received any type of reparations. In 2020, Congress began providing the Defense Department $3 million each year to pay for deaths, injuries, or damages resulting from U.S. or allied military actions, but in the time since, the U.S. has not announced a single ex gratia payment, leaving victims like Al Manthari to fend for themselves.

“Payments would be a drop in the bucket for the U.S. military, but there is clearly no system to help people. It’s even unclear that allocated funding, like the USAID Marla Fund, is currently being used for that purpose.”

“If we, as a U.S. legal action charity, cannot get a substantive response from CENTCOM, what hope do civilians harmed by U.S. drone strikes living in Somalia, Syria, or Afghanistan have to access accountability?”

“When I spoke with a CENTCOM lawyer, he was very clear that they did not want the public to have the perception that there is an official process. They also shy away from using the word ‘claims’ because, I think, they are concerned that it suggests some sort of a legal application.”

Asked if the fact that the U.S. military has taken no further action against a man previously deemed too dangerous to live was a tacit admission that Al Manthari is — as two independent investigations found — innocent of any terrorist ties, a U.S. military spokesperson demurred. “I’ll follow up with policy,” he said on June 6. “I’ll get back to you.” He never did.

“Far too many cases have been erroneously dismissed despite painstaking research from human rights groups and journalists. And even when the U.S. government confirms it caused civilian casualties, it has rarely made ex gratia payments or other amends. … The result is that civil society groups and journalists have had to fill this gap, from conducting rigorous investigations the government should be doing, to setting up crowdfunding campaigns to support victims. That’s just not how accountability is supposed to work.”

Ukraine accounts for 90 per cent of Lebanon’s wheat imports and is a leading supplier for countries including Somalia, Syria and Libya. Lebanon is “really struggling with an already high import bill and this is only going to make things worse,”

Russia also provides its Black Sea neighbour Turkey with more than 70 per cent of its wheat imports

Even before the Russian invasion of Ukraine, inflation in Turkey had had hit a 20-year high of 54.4 per cent in February. “The war is only going to exacerbate the cost of food,”

“What’s critical here is that the Black Sea offers a logistical and price advantage . . . Costs will rise significantly when [Turkey] buys from the US or Australia,” he said. “Even if the war ends tomorrow, Ukraine’s planting season has already been disrupted and it will impact the 2022 harvest regardless.”

The UN World Food Programme, which procures grains and food to distribute to poorer countries, bought just under 1.4m tonnes of wheat last year of which 70 per cent came from Ukraine and Russia.

The last time wheat prices spiked to these levels in 2007 and 2008 because of severe production declines in leading producing countries such as Australia and Russia, protests spread through nearly 40 countries from Haiti to the Ivory Coast, while a jump in grain prices in 2009-10 is regarded as one of the triggers of the Arab Spring uprisings in the Middle East.

Egyptian authorities say their wheat inventories will last until mid June and the Egyptian local harvest should start coming in by mid April. Any rise in subsidised bread prices and further increase in food inflation in Egypt “increases the threat of social unrest,”

Wheat inventories are tight everywhere and as Chinese and South Korean buyers of Ukrainian corn, used to feed livestock, sought sellers elsewhere, EU agricultural ministers on Wednesday discussed allowing farmers to boost production using the 10 per cent of land they usually leave fallow in response to the war in Ukraine.

“The supply chain is broken,”

the UAE has agreed to provide Ethiopia with huge loans, investment and infrastructure support; it has upgraded Eritrea’s Assab port and constructed a military headquarters nearby from which it has launched offensives into Yemen; and its company DP World has secured contracts worth hundreds of millions of dollars to develop the ports in Berbera and Bosaso, located in the semi-autonomous regions of Somaliland and Puntland respectively

Amidst the growing competition for influence among the Middle Eastern axes, Addis Ababa has managed to avoid taking sides – at least publicly – and leverage its geostrategic significance as the region’s hegemon to attract much-needed investment from several different partners.

Ethiopia has also positioned itself well to benefit from the complex scramble for Red Sea ports. The land-locked country relies on Djibouti for nearly 97% of its imports, but now has clear avenues for diversifying its routes to sea. The rapprochement with its neighbour should give it access to Eritrean ports, while the UAE’s development of Berbera in Somaliland will give it another crucial option. Ethiopia defied the Somali federal government’s objections when it supported the UAE’s deal with the semi-autonomous region, but in return it has acquired a 19% stake in the project.