Advanced Search
MyIDEAS: Login

Global Oil Resources and the Persian Gulf: Security and Democracy

Contents:

Author Info

  • Duane Chapman

    ()
    (Department of Applied Economics and Management, Cornell University, Ithaca, NY, USA)

Registered author(s):

    Abstract

    The oil of the Persian Gulf has been of considerable interest to oil companies and Western governments (and to Russia) for more than a century. Remaining global conventional crude oil resources are on the order of 3 trillion barrels, with more than 50% of that amount in the Persian Gulf. Since 1986, a price range framework has resulted in stable crude oil prices and reliable supply. In economic terms, it is a Nash game theory equilibrium between Gulf producers and Western (and Asian) consumers. Military support is an important part of the system. Given the very low cost of production in the region (about $5 per barrel) and the great magnitude of resources, the oil wealth in the Gulf is on the order of $60 trillion. It is the existence of past and potential efforts to seize this resource which creates a major policy problem for the 8 countries in the region and for global security. The security framework which made a stable world oil market possible has itself contributed to growing instability in individual countries, the rise of Al Qaeda, and the U.S. occupation of Iraq. There are three broad policy approaches to this dilemma. The dominant policy in the 1973-1990 period was generally a "hands off" position by the U.S. and Europe. In the years following the Gulf War (1991-current) a security system has been organized and led by the United States. A third type of security structure would be essentially international. The paper concludes by discussing each approach in the context of 6 conditions or requirements for democratic governments and a stable world oil market.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.economics.rpi.edu/workingpapers/rpi0314.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Rensselaer Polytechnic Institute, Department of Economics in its series Rensselaer Working Papers in Economics with number 0314.

    as in new window
    Length:
    Date of creation: Dec 2003
    Date of revision:
    Handle: RePEc:rpi:rpiwpe:0314

    Contact details of provider:
    Email:
    Web page: http://www.economics.rpi.edu/
    More information through EDIRC

    Related research

    Keywords:

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:rpi:rpiwpe:0314. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John Heim) The email address of this maintainer does not seem to be valid anymore. Please ask John Heim to update the entry or send us the correct address.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.