Oil
Routes to Disruption—Supply Chain Sabotage and Israel’s War on Gaza
Since October 7, at least three shipments of military-grade jet fuel (JP-8) have reached Israel from the United States, powering the fighter jets and Apache helicopters that have, for more than nine months now, continued to decimate Gaza. Each shipment carried 30,000...Fossil Fueled Comfort—The History and Cost of Air Conditioning in Bahrain
How AC has reshaped the urban landscape and labor politics of the Gulf.
The Rise and Fall of Kurdish Power in Iraq
More than thirty years after its founding, the KRG faces an uncertain future.
Water, Oil and Iraq’s Climate Future
Two resources tell the story of Iraq’s climate vulnerability.
Water, Oil and Iraq’s Climate Future
In the second preview article from MERIP’s spring issue, The State of Iraq—twenty years after the invasion, Zeinab Shuker writes about how oil and water tell the story of Iraq’s climate vulnerability.
The Financial Ties that Bind the Arab Gulf Monarchies and the United States
In July 2021, former President Donald Trump’s son-in-law and advisor Jared Kushner obtained a $2 billion investment for his newly formed private equity firm, Affinity Partners, from Saudi Arabia’s sovereign wealth fund. Notably, the deal was approved despite opposition from the Saudi fund’s investment screening panel. According to the minutes of the panel, objections to the investment plan included a major fee that “seems excessive,” the “inexperience of the Affinity Fund management” and a due diligence determination that the firm’s operations were “unsatisfactory in all aspects.” The panel was overruled, however, by the sovereign wealth fund’s board, controlled by Crown Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia.
Labor Organizing on the Rise Among Iranian Oil Workers
Oil workers in Iran have been striking since June 19, 2021, leading some observers to ask whether protests are becoming routine within the existing political system or are a prelude to a bigger uprising. The authors explain what makes these strikes remarkable, why Iran’s neoliberal policies pushed workers to organize and how the state and society are reacting.
“Algeria is not for Sale!” Mobilizing Against Fracking in the Sahara
Although Algeria’s 2019 Hirak uprising came as a surprise to many, previous instances of popular mobilization, like the impressive protests against fracking that emerged in several southern Algerian cities in 2014 and 2015, not only highlighted the intersection of political and environmental questions, but also paved the way for peaceful modes of resistance.
The Unintended Consequences of Turkey’s Quest for Oil
The discovery of oil in Turkey’s southeast encouraged state elites to imagine that development would lead to the assimilation of Kurds into Turkish culture and language. Instead, oil infrastructures and the resulting social changes had very different consequences. Zeynep Oguz explains the historical dynamics of the quest for oil and how it nurtured Kurdish dissent and critique of the state.
The Unintended Consequences of Turkey’s Quest for Oil
The discovery of oil in Turkey’s southeast encouraged state elites to imagine that development would lead to the assimilation of Kurds into Turkish culture and language. Instead, oil infrastructures and the resulting social changes had very different consequences. Zeynep Oguz explains the historical dynamics of the quest for oil and how it nurtured Kurdish dissent and critique of the state. Forthcoming in MER issue 296 “Nature and Politics.”
The Oil for Security Myth and Middle East Insecurity
Since the end of World War II, US policy toward the Middle East has ostensibly been dedicated to protecting the free flow of hydrocarbons to sustain the global economy. In reality, America’s pursuit of energy security has increased insecurity in the region through conflict, militarization and support for neoliberal authoritarians. Jacob Mundy explains why oil for security is a myth and how the current glut of oil presents a dangerous new twist.
The Oil for Security Myth and Middle East Insecurity
Since the end of World War II, US policy toward the Middle East has ostensibly been dedicated to protecting the free flow of hydrocarbons to sustain the global economy. In reality, America’s pursuit of energy security has increased insecurity in the region through conflict, militarization and support for neoliberal authoritarians. Jacob Mundy explains why oil for security is a myth and how the current glut of oil presents a dangerous new twist.
Saudi Arabia’s Weaponization of Oil Abundance
Saudi Arabia and Russia cooperated for years to maintain the value of their chief export—oil. This month, that collusion collapsed into a price war with both countries unexpectedly boosting production. In the midst of the coronavirus pandemic and China’s decreasing oil demands, fears of an uncertain future are shaking the fossil fuel economy.
Abadan
In fall 1978, Abadan’s oil refinery workers played a decisive role in the Iranian Revolution by joining the national mass strikes. Just two years later, Abadan and the adjoining port city of Khorramshahr were shelled by the invading Iraqi army and effectively destroyed during the Iran–Iraq war (1980–88), which scattered their population of over 600,000 as refugees across Iran and abroad.
The Arab World’s Non-Linear Electricity Transitions
For many, especially in the United States, the Arab world is closely associated with fossil fuels. But over the past several years, a raft of news articles, opinion pieces and analyses have hailed the advent of renewable energy—especially solar power—in Arab countries. Many such pieces open with images meant to defy the reader’s expectations. In the first line of an essay in The Atlantic titled, “Why the Saudis Are Going Solar,” the author notes that according to his first impression, “Everything about [Prince Turki of Saudi Arabia] seemed to suggest Western notions of a complacent functionary in a complacent, oil-rich kingdom.” Yet he was surprised to find that “Turki doesn’t fit the stereotype, and neither does his country” because of the prince’s leadership in Saudi Arabia’s drive to develop a domestic solar industry. In a similar vein, an Economist article on the blossoming of solar energy in the developing world opens with an anecdote about solar arrays being built in an arid part of Jordan, accompanied by a Getty Images photograph of a solar panel resting in front of a sand dune in an unidentified locale—solar power making the desert bloom, so to speak. Also fitting this pattern, the International Energy Agency’s World Energy Outlook 2016 misleadingly summarizes a “New Policies” scenario for Middle East power generation that includes oil, gas, nuclear, hydro, wind and solar energy with the statement, “Natural gas is gradually joined by renewables as the fuel of choice.” A more accurate summary of the IEA’s own data might read, “Oil and gas continue to dominate a more diverse energy mix.”
Notes on Low Oil Prices and Their Implications
After about three years of hovering around $110 per barrel, with highs of $125 and lows of $90, oil prices began a precipitous decline in the summer of 2014, reaching a low of $48 per barrel in mid-August 2015 before plummeting to just under $30 per barrel five months later. While investors are no doubt reeling from the impact of this price decline on their portfolios and ventures, it’s well worth pondering how the Middle East and its geopolitics are likely to be affected.
But how to explain this downward spiral in the first place? By all accounts, reasons abound.
Breaking Even, Breaking Down or Going for Broke?
As of mid-May 2015, crude oil prices had fallen to the lowest level in recent years, under $60 a barrel for US domestic benchmark West Texas Intermediate (WTI) and about $66 a barrel for the international Brent benchmark. These market prices are compared to several types of “break-even” prices and affect decision-making by oil producers at several levels: whether price covers just production costs or incorporates a satisfactory level of profit, whether budgets balance and whether long-term capital investment is attractive.
Fuel Subsidy Policy and Popular Mobilization in Syria
On February 17, Syrian Minister of Oil Muhammad al-Lahham warned Parliament that the price of fuel would have to increase. This announcement came just one month after the government raised the official price of diesel by more than 50 percent to 125 Syrian pounds (70 cents) per liter, the largest single hike since the uprising of 2011 and an eightfold increase since May of that year.
Why Isn’t the “Swing Producer” Swinging?
The price of oil is hovering around $50 per barrel of West Texas Intermediate crude, and $60 per barrel of Brent crude, the lowest levels since the global economic downturn of 2008-2009. Until the end of February, when they rebounded slightly, oil prices had been dropping since the middle of last summer.
In the past, Saudi Arabia has cut its oil output to halt this sort of freefall. As the “swing producer,” the country with the largest and most easily extracted reserves, the desert kingdom can afford to reduce supply in the short run to steady price levels in the long run. This time, however, the Saudis ordered their rigs to keep pumping as usual, doing nothing to stop the downward spiral. Why?
McJihad, the Film
The themes of Adam Curtis’ new documentary Bitter Lake should be well known to those familiar with his body of work: power, techno-politics, science, managerialism and the media. The film uses the contemporary history of Afghanistan to tell a story about how polities in the West have become incapable of understanding the complex and horrible happenings around them. Traditional forms of power in the West and Afghanistan have taken advantage of the fear and confusion to consolidate their control, but at the expense of an intellectually deskilled Western public and a world that is fundamentally less governable. Bitter Lake is more fable than scholarship, but the film is nonetheless a devastating examination of how Western interventions in Afghanistan refract the vacuousness of our own politics.
