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7 Places Where Fossil Fuels Are Fueling Conflict

Where oil flows, war follows.

| Wed Jul. 9, 2014 6:00 AM EDT
A destroyed Iraqi tank during the First Gulf War.

This story first appeared on the TomDispatch website.

Iraq, Syria, Nigeria, South Sudan, Ukraine, the East and South China Seas: wherever you look, the world is aflame with new or intensifying conflicts. At first glance, these upheavals appear to be independent events, driven by their own unique and idiosyncratic circumstances. But look more closely and they share several key characteristics—notably, a witch's brew of ethnic, religious, and national antagonisms that have been stirred to the boiling point by a fixation on energy.

In each of these conflicts, the fighting is driven in large part by the eruption of long-standing historic antagonisms among neighboring (often intermingled) tribes, sects, and peoples. In Iraq and Syria, it is a clash among Sunnis, Shiites, Kurds, Turkmen, and others; in Nigeria, among Muslims, Christians, and assorted tribal groupings; in South Sudan, between the Dinka and Nuer; in Ukraine, between Ukrainian loyalists and Russian-speakers aligned with Moscow; in the East and South China Sea, among the Chinese, Japanese, Vietnamese, Filipinos, and others. It would be easy to attribute all this to age-old hatreds, as suggested by many analysts; but while such hostilities do help drive these conflicts, they are fueled by a most modern impulse as well: the desire to control valuable oil and natural gas assets.  Make no mistake about it, these are twenty-first-century energy wars.

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It should surprise no one that energy plays such a significant role in these conflicts. Oil and gas are, after all, the world's most important and valuable commodities and constitute a major source of income for the governments and corporations that control their production and distribution. Indeed, the governments of Iraq, Nigeria, Russia, South Sudan, and Syria derive the great bulk of their revenues from oil sales, while the major energy firms (many state-owned) exercise immense power in these and the other countries involved. Whoever controls these states, or the oil- and gas-producing areas within them, also controls the collection and allocation of crucial revenues. Despite the patina of historical enmities, many of these conflicts, then, are really struggles for control over the principal source of national income.

Moreover, we live in an energy-centric world where control over oil and gas resources (and their means of delivery) translates into geopolitical clout for some and economic vulnerability for others. Because so many countries are dependent on energy imports, nations with surpluses to export—including Iraq, Nigeria, Russia, and South Sudan—often exercise disproportionate influence on the world stage. What happens in these countries sometimes matters as much to the rest of us as to the people living in them, and so the risk of external involvement in their conflicts—whether in the form of direct intervention, arms transfers, the sending in of military advisers, or economic assistance—is greater than almost anywhere else.

The struggle over energy resources has been a conspicuous factor in many recent conflicts, including the Iran-Iraq War of 1980-1988, the Gulf War of 1990-1991, and the Sudanese Civil War of 1983-2005. On first glance, the fossil-fuel factor in the most recent outbreaks of tension and fighting may seem less evident. But look more closely and you'll see that each of these conflicts is, at heart, an energy war.
 

Iraq, Syria, and ISIS

The Islamic State of Iraq and Syria (ISIS), the Sunni extremist group that controls large chunks of western Syria and northern Iraq, is a well-armed militia intent on creating an Islamic caliphate in the areas it controls. In some respects, it is a fanatical, sectarian religious organization, seeking to reproduce the pure, uncorrupted piety of the early Islamic era. At the same time, it is engaged in a conventional nation-building project, seeking to create a fully functioning state with all its attributes.

As the United States learned to its dismay in Iraq and Afghanistan, nation-building is expensive: institutions must be created and financed, armies recruited and paid, weapons and fuel procured, and infrastructure maintained. Without oil (or some other lucrative source of income), ISIS could never hope to accomplish its ambitious goals. However, as it now occupies key oil-producing areas of Syria and oil-refining facilities in Iraq, it is in a unique position to do so. Oil, then, is absolutely essential to the organization's grand strategy.

Syria was never a major oil producer, but its prewar production of some 400,000 barrels per day did provide the regime of Bashar al-Assad with a major source of income. Now, most of the country's oil fields are under the control of rebel groups, including ISIS, the al-Qaeda-linked Nusra Front, and local Kurdish militias. Although production from the fields has dropped significantly, enough is being extracted and sold through various clandestine channels to provide the rebels with income and operating funds. "Syria is an oil country and has resources, but in the past they were all stolen by the regime," said Abu Nizar, an anti-government activist. "Now they are being stolen by those who are profiting from the revolution."

At first, many rebel groups were involved in these extractive activities, but since January, when it assumed control of Raqqa, the capital of the province of that name, ISIS has been the dominant player in the oil fields. In addition, it has seized fields in neighboring Deir al-Zour Province along the Iraq border. Indeed, many of the US-supplied weapons it acquired from the fleeing Iraqi army after its recent drive into Mosul and other northern Iraqi cities have been moved into Deir al-Zour to help in the organization's campaign to take full control of the region. In Iraq, ISIS is fighting to gain control over Iraq's largest refinery at Baiji in the central part of the country.

It appears that ISIS sells oil from the fields it controls to shadowy middlemen who in turn arrange for its transport—mostly by tanker trucks—to buyers in Iraq, Syria, and Turkey. These sales are said to provide the organization with the funds needed to pay its troops and acquire its vast stockpiles of arms and ammunition. Many observers also claim that ISIS is selling oil to the Assad regime in return for immunity from government air strikes of the sort being launched against other rebel groups. "Many locals in Raqqa accuse ISIS of collaborating with the Syrian regime," a Kurdish journalist, Sirwan Kajjo, reported in early June. "Locals say that while other rebel groups in Raqqa have been under attack by regime air strikes on a regular basis, ISIS headquarters have not once been attacked."

However the present fighting in northern Iraq plays out, it is obvious that there, too, oil is a central factor. ISIS seeks both to deny petroleum supplies and oil revenue to the Baghdad government and to bolster its own coffers, enhancing its capacity for nation-building and further military advances. At the same time, the Kurds and various Sunni tribes—some allied with ISIS—want control over oil fields located in the areas under their control and a greater share of the nation's oil wealth.
 

Ukraine, the Crimea, and Russia

The present crisis in Ukraine began in November 2013 when President Viktor Yanukovych repudiated an agreement for closer economic and political ties with the European Union (EU), opting instead for closer ties with Russia. That act touched off fierce anti-government protests in Kiev and eventually led to Yanukovych's flight from the capital. With Moscow's principal ally pushed from the scene and pro-EU forces in control of the capital, Russian President Vladimir Putin moved to seize control of the Crimea and foment a separatist drive in eastern Ukraine. For both sides, the resulting struggle has been about political legitimacy and national identity—but as in other recent conflicts, it has also been about energy.

Ukraine is not itself a significant energy producer. It is, however, a major transit route for the delivery of Russian natural gas to Europe. According to the US Energy Information Administration (EIA), Europe obtained 30% of its gas from Russia in 2013—most of it from the state-controlled gas giant Gazprom—and approximately half of this was transported by pipelines crossing Ukraine. As a result, that country plays a critical role in the complex energy relationship between Europe and Russia, one that has proved incredibly lucrative for the shadowy elites and oligarchs who control the flow of gas, whille at the same time provoking intense controversy. Disputes over the price Ukraine pays for its own imports of Russian gas twice provoked a cutoff in deliveries by Gazprom, leading to diminished supplies in Europe as well.

Given this background, it is not surprising that a key objective of the "association agreement" between the EU and Ukraine that was repudiated by Yanukovych (and has now been signed by the new Ukrainian government) calls for the extension of EU energy rules to Ukraine's energy system—essentially eliminating the cozy deals between Ukrainian elites and Gazprom. By entering into the agreement, EU officials claim, Ukraine will begin "a process of approximating its energy legislation to the EU norms and standards, thus facilitating internal market reforms."

Russian leaders have many reasons to despise the association agreement. For one thing, it will move Ukraine, a country on its border, into a closer political and economic embrace with the West. Of special concern, however, are the provisions about energy, given Russia's economic reliance on gas sales to Europe—not to mention the threat they pose to the personal fortunes of well-connected Russian elites. In late 2013 Yanukovych came under immense pressure from Vladimir Putin to turn his back on the EU and agree instead to an economic union with Russia and Belarus, an arrangement that would have protected the privileged status of elites in both countries. However, by moving in this direction, Yanukovych put a bright spotlight on the crony politics that had long plagued Ukraine's energy system, thereby triggering protests in Kiev's Independence Square (the Maidan)—that led to his downfall.

Once the protests began, a cascade of events led to the current standoff, with the Crimea in Russian hands, large parts of the east under the control of pro-Russian separatists, and the rump western areas moving ever closer to the EU. In this ongoing struggle, identity politics has come to play a prominent role, with leaders on all sides appealing to national and ethnic loyalties. Energy, nevertheless, remains a major factor in the equation. Gazprom has repeatedly raised the price it charges Ukraine for its imports of natural gas, and on June 16th cut off its supply entirely, claiming non-payment for past deliveries. A day later, an explosion damaged one of the main pipelines carrying Russian gas to Ukraine—an event still being investigated. Negotiations over the gas price remain a major issue in the ongoing negotiations between Ukraine's newly elected president, Petro Poroshenko, and Vladimir Putin.

Energy also played a key role in Russia's determination to take the Crimea by military means. By annexing that region, Russia virtually doubled the offshore territory it controls in the Black Sea, which is thought to house billions of barrels of oil and vast reserves of natural gas. Prior to the crisis, several Western oil firms, including ExxonMobil, were negotiating with Ukraine for access to those reserves. Now, they will be negotiating with Moscow. "It's a big deal," said Carol Saivetz, a Eurasian expert at MIT. "It deprives Ukraine of the possibility of developing these resources and gives them to Russia."

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