Daveed Gartenstein-Ross’s new policy brief for the Foundation for Defense of Democracies summarizes some of the strategic consequences of our current dependence on foreign oil. His arguments aren't new, they have just taken on new resonance as the price of gasoline has put oil on everyone's brain these days. The argument against further dependence on foreign oil are in summary that,
- petrodollars support terrorism
- it increases supply vulnerability to terrorism
- the cost of crude is negatively affecting our overall economic stability and food prices
I mostly agree with him, but the purpose of this post is to point out that the arguments and solutions that Gartenstein-Ross offer are more complex than at first glance. A closer look at two of the common arguments in the FDD report will, I hope, be an informal introduction to a very complex dynamic at work. This post doesn't represent a formal analytical piece, rather it is a synthesis of a few ideas rattling around in my head after reading the FDD brief.
You won’t find me disagreeing with Gartenstein-Ross’ first argument that our dependence on foreign oil causes us to “fund both sides of the terror war.” Money pouring into Persian Gulf countries is finding its way into the hands of terrorist groups, and more important, global radicalization efforts operating under the false cover of “dawah.” The rise of Islamic banking -- and the impenetrable, exclusive culture of Islamic scholars who run it -- poses its own threat, one that we are woefully unprepared to handle. I dedicate a great deal of content on this blog to awareness of the petrodollar power emerging from the Gulf. It’s one of the reason why I believe that regardless of Al Qaeda’s losses in Iraq, time is on their side. The GCC recently reported that member countries were expecting a 12 trillion dollar cash surplus over the next five years. Even if a mere.001 percent of that cash reaches Al Qaeda, that’s 12 billion dollars. That’s a lot of jihad.
Please read my new article in the Combating Terrorism Center’s Sentinel journal for my opinion on Al Qaeda’s threat to energy infrastructure in the Gulf. Gartenstein-Ross and I agree on this count, as well.
The core problem here isn’t that we’re sending our money into the Gulf. It’s that Gulf beneficiaries are using their new-found wealth to remake Islam in their own image, and we have no strategy for combating these dawah efforts.
Besides, it wouldn’t cease, even if we could end our dependence on Saudi and Iraqi crude tomorrow. There would be other countries willing to take up the slack, especially China. In other words, Saudi Arabia would not be hard pressed to find another client. As a matter of fact, Gulf countries may be already exploiting China’s dependence on their oil, by convincing the Chinese government to permit members of their Muslim community to train at Gulf madrasas. Readers of this blog are informed enough to understand the possible long-term implications of Wahhabist training and dawah.
Also, if we were to pull our oil interests from the Gulf tomorrow, it would alter our geopolitical standing in the region. We would no longer be a strategic player in a significant region of the world. Far from retreating from the Gulf, I believe we should be meddling more: more diplomats, more soldiers, more military bases, more corporations, more tourists. 12 trillion surplus dollars converts to substantial global geopolitical power for countries that are no bigger than the state of Rhode Island. Instead of whining, we should be asserting our geopolitical muscle when it is needed.
Another argument often heard is the call for fuel alternatives. In very real terms alternative energy sources are still decades -- decades -- away. Are they worth pursuing? Yes. Will any provide an alternative to current energy prices? Absolutely not.
Case in point: the number of long haul trucks on the road is an important indicator of economic growth. More buying going on here in the States, means the more goods being manufactured overseas. When those new goods reach our shores at points like the port of Los Angeles, those products have to make it to the Wal-Mart or supermarket shelves, and more often than not they are getting their by truck. When there is an alternative fuel that can fuel an 18-wheeler from LA to Maine, then we have finally found an alternative source of energy. The same goes for planes. The alternative fuel we’re all looking for to solve our current problems just doesn’t exist.
For the record, I would love to see the end of our oil-based economy, but only if the alternative is clean and reliable and could fuel economic growth. The fact is we’re as close to an oil-free economy as we are to a paper-free bathroom. Yet that doesn’t mean our policy should be to have our public leaders gripe about the rising prices, and sit helplessly by while unstable countries play games with or lose total control over their crude supplies.
For example: Nigeria is a mess. How bad could it be for one of our top suppliers? Shell, the biggest company in country, has been in a near constant state of force majeure since the beginning of the year. That means they have been unable to meet their contracts due to circumstances way out of their control. Well, the entire country is spiraling out of control. Are we doing anything to support security and stability in Nigeria? Do we even have a Nigeria policy?
Cue the crickets chirping.
It’s not enough to say we need to end our “dependence” on foreign oil and find alternative fuels. Neither idea is realistic. Rather, we should be turning this volatile market into a strategic advantage. We’re not the only country hurting under the rising costs of crude, but we are the United States, the most productive country on earth, and the world’s only superpower. Countries all over the world have a stake in American economic stability, and we have a stake in seeing that oil markets work to our advantage.