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The Persian Gulf, Global Oil Resources, And International Security

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  • DUANE CHAPMAN
  • NEHA KHANNA

Abstract

This article analyzes the interaction of politics and military security in global oil markets since the 1980s. The authors outline the historical evolution of the pricing structure that maintained a stable world oil market. They argue that the security framework underlying this pricing structure relied on a trade‐off between price stability and military security that has contributed to growing political instability in individual Persian Gulf countries and the rise of Al Qaeda and similar groups. The article concludes with a discussion of the pros and cons of three possible policy approaches to this dilemma—a “hands‐off” approach that is similar to the policy that prevailed between 1973 and 1990, a unilateral security system organized and led by the United States, and an international security framework. (JEL D47, F02, L11, Q32, Q41, Q43, Q48)

Suggested Citation

  • Duane Chapman & Neha Khanna, 2006. "The Persian Gulf, Global Oil Resources, And International Security," Contemporary Economic Policy, Western Economic Association International, vol. 24(4), pages 507-519, October.
    • Handle: RePEc:bla:coecpo:v:24:y:2006:i:4:p:507-519
    DOI: 10.1093/cep/byj035
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    References listed on IDEAS

    as
    1. D. Chapman & N. Khanna, 2000. "World oil: the growing case for international policy," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 1-13, January.
    2. Duane Chapman & Neha Khanna, 2001. "An Economic Analysis Of Aspects Of Petroleum And Military Security In The Persian Gulf," Contemporary Economic Policy, Western Economic Association International, vol. 19(4), pages 371-381, October.
    3. Chapman, Duane, 2001. "A Review of the New Undiscovered Conventional Crude Oil Resource Estimates and their Economic and Environmental Implications," Working Papers 127669, Cornell University, Department of Applied Economics and Management.
    4. Chapman, Duane, 2001. "A Review of the New Undisclosed Conventional Crude Oil Resource Estimates and their Economic and Environmental Implications," Working Papers 179573, Cornell University, Department of Applied Economics and Management.
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    Citations

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    Cited by:

    1. Bharati, Rakesh & Crain, Susan J. & Kaminski, Vincent, 2012. "Clustering in crude oil prices and the target pricing zone hypothesis," Energy Economics, Elsevier, vol. 34(4), pages 1115-1123.
    2. Hui, Cho-Hoi & Lo, Chi-Fai & Cheung, Chi-Hin & Wong, Andrew, 2020. "Crude oil price dynamics with crash risk under fundamental shocks," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    3. Neha Khanna & Duane Chapman, 2010. "Guns And Oil: An Analysis Of Conventional Weapons Trade In The Post‐Cold War Era," Economic Inquiry, Western Economic Association International, vol. 48(2), pages 434-459, April.

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    More about this item

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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