Oil, War, and the Middle East
For Lifelong Learning
By
Dave Weinberg
HANDOUTS
Introduction
• General Outline of Class
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Evolution of the Middle East
Early History of Oil
European Interest and Involvement in the Middle East
World War I and its Impact on the Middle East
The Inter-War Years
World War II
Arab-Israeli Conflict
Post WWII and the Oil Economy
Oil Prices and OPEC
The Gulf War
Some Final Notes
• This is a Discussion Class – so speak up
• Videos – lots of them, but heavily edited for time
• Other Materials – check the course description on the LLL website
for downloads of various background information.
Middle East Migration
70,000 – 40,000 BCE
https://www.utexas.edu/features/2007/ancestry/graphics/ancestry5_medium.jpg/
Some Modern Geography
Libya
Libya
Sudan
Middle East – 632 C.E.
The World ~ 1800
The World ~ 1850
Middle East ~ 1800
Middle East ~ 1850
Energy Consumption by Source,
1800-2008
King Oil
King Coal
King Wood
1800
1850
1900
1950
2000
British Empire ca 1900
The Sun Never Sets
Some “Oily” Characters You’ll Meet
“Col.” Edwin Drake
John D. Rockefeller
Ferdinand de Lesseps
Marcus Samuel
Abdul Aziz ibn Saud
Henri Deterding
Harry St. John Philby
Robert Nobel
Iosif Dzhugashvili
Winston Churchill
King Faisal 1 of Iraq
Calouste Gulbenkian
Baron Alphonse Rothschild
Ottoman Empire 1699 - 1914
The Middle East - 1930
U.S. Policy & Saudi Arabia
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Roosevelt Letter – “Your Majesty will recall that on previous occasions I communicated to you the
attitude of the American Government toward Palestine and made clear our desire that no decision be
taken with respect to the basic situation in that country without full consultation with both Arabs and
Jews. Your Majesty will also doubtless recall that during our recent conversation I assured you that I
would take no action, in my capacity as Chief of the Executive Branch of this Government, which might
prove hostile to the Arab people.”
Truman Doctrine - “I wish to renew to Your Majesty the assurances which have been made to you
several times in the past, that the United States is interested in the preservation of the independence
and territorial integrity of Saudi Arabia. No threat to your kingdom could occur which would not be a
matter of immediate concern to the United States.”
Eisenhower Doctrine – “It contains about two thirds of the presently known oil deposits of the world
and it normally supplies the petroleum needs of many nations of Europe, Asia and Africa. The nations of
Europe are peculiarly dependent upon this supply, and this dependency relates to transportation as well
as to production! This has been vividly demonstrated since the closing of the Suez Canal and some of
the pipelines. … The action which I propose would have the following features.
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It would, first of all, authorize the United States to cooperate with and assist any nation or group of nations in the
general area of the Middle East in the development of economic strength dedicated to the maintenance of
national independence.
It would, in the second place, authorize the Executive to undertake in the same region programs of military
assistance and cooperation with any nation or group of nations which desires such aid.
It would, in the third place, authorize such assistance and cooperation to include the employment of the armed
forces of the United States to secure and protect the territorial integrity and political independence of such
nations, requesting such aid, against overt armed aggression from any nation controlled by International
Communism.
Carter Doctrine – “Let our position be absolutely clear: An attempt by any outside force to gain control
of the Persian Gulf region will be regarded as an assault on the vital interests of the United States of
America, and such an assault will be repelled by any means necessary, including military force.”
(Some) Arab-Israeli Conflicts
NAME
YEAR(S)
JEWS/ISRAEL vs
Battle of Tel Hal
Jerusalem riots - Hebron massacre
Arab revolt in Palestine
Mandatory Palestine Civil War
1920
1929
1936 - 1939
1947-1948
Palestinian Arabs
Palestinian Arabs
Palestinian Arabs
Britain
War of Independence
1948
Egypt, Iraq, Transjordan,
Syria, Lebanon, Saudi Arabia,
HWA*/ALA*
Suez Crisis
1956
Six-Day War
1967
Egypt
Egypt, Iraq, Jordan, Syria,
Lebanon
Yom Kippur War
1973
Egypt, Iraq, Jordan, Syria,
Algeria, Morocco, Tunisia,
Cuba, North Korea
1st Lebanon War
1982 - 2000
PLO, Syria, Hezbollah,
Jammoul, Amal
1st Intifada
2nd Intifada
2nd Lebanon War
1987 - 1993
2000 - 2005
2006
Fatah, Hamas
PA, Hamas
Hezbollah
Oil Price Shocks
More Recent Oil Price Shocks
Ancillary Slides
Crude Prices 1861 - 2014
Who Is Big Oil?
Who Owns Big Oil?
Institutional Investors = 60.5%
Individual Investors
= 36.6%
Corporate Management = 2.9%
How Profitable is Big Oil?
What About Taxes?
Post 1980 Consolidation
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Aurora Cyber Attack
The first evidence of this threat came back in March of 2007, in an obscure test
conducted by the Department of Homeland Security... codenamed “Aurora.”
The test was carried out at the Idaho National Laboratory (INL), the nation’s leading
energy research and development center.
To kick things off, the DHS installed a 2.5-megawatt generator and connected it to an
electric substation, then set it running. It’s a setup that’s identical to most utility
substations.
Next, INL researchers hacked into industrial software that protects valuable grid
equipment from dangerous power fluctuations.
This allowed them to force the generator into what’s known as an “out of phase”
condition.
Here’s a video of the Aurora test in real time...
https://www.youtube.com/watch?v=fJyWngDco3g