Breitling Energy Daily Podcast #413

For decades the United States has tied its energy security to the Middle East, engaging in close partnerships with the Arab Gulf states that ensured a steady flow of oil to global markets at reasonable prices. This alliance traces its history to the end of the Second World War, as the US – then the world’s largest producer – looked with concern at its dwindling energy reserves.

Although the US never imported more than a fifth of its oil from the Gulf, as a global hegemon with relationships spanning the world, it relied on the Arab producers to keep the global economy churning and oil prices stable. This, in turn, has given vital importance and influence to the Gulf states, a position many in the region fear may diminish as a consequence of America’s growing energy independence.

Comments are closed.