Oil is most important commodity of present times. The importance of oil cannot be denied. Oil is major source of energy. It is a prerequisite for industrial sector, agro-based industrial development and traditional agriculture. The demand for oil is increasing day by day. The world consumes 76 million barrels of oil a day. According to IMF, if price of oil is increased by 5 dollars per barrel, and if it is sustained for a year, global economic growth rate will decrease by 0.5%. This shows crucial importance of oil as a source of fuel. The renaissance movement (rise of modern world) brought about industrial revolution. The industrial revolution divided world into two distinct groups. Industrial countries of west became developed countries (DC's). The second group is group of underdeveloped countries (UDC's). These countries could not enjoy fruits of industrial revolution.
The development and growth of developed countries solely depend upon their industrial progress. And industrial progress is always attributed to continuous oil supply. On other hand, growth and development of underdeveloped countries (UDC's) depend upon traditional agriculture sector, natural resources like oil and mainly on foreign aid. DC's are major source of foreign aid for UDC's. Therefore it can be assumed that if there will be any discrepancy in growth and development of DC's it will have a direct effect on economies of UDC's. Another important fact is that oil reserves of DC's are insufficient to meet their domestic oil demand. Most of oil reserves are situated in OPEC countries (Algeria, Ecuador, Gabon, Indonesia, Saudi Arabia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, United Arab Emirates and Venezuela). The two countries of central Asia, Turkmenistan and Kazakhstan, are also oil rich countries and they have potential to export oil. Both these countries are not members of OPEC. Russia is also an oil exporting country and 40% of its exports are based on oil products.
All of above mentioned countries of OPEC and central Asia have nothing but oil. The economies of these countries, despite having rich oil reserves, are fragile. Any discrepancy in oil demand results in economic instability. New foreign aid becomes inevitable for economic growth and development of these countries.
The DC's look towards these oil rich countries in order to meet their oil demand. On other hand, these oil rich countries seek foreign assistance from these DC's in many fields.
In 1973, oil was for first time used as a political weapon by Arab oil-producing countries against Israel and west. Many analysts are of view that it was start of oil politics. In my opinion, oil politics started with advent of industrial revolution when countries of west felt need and hunger for oil. They came to know that their own oil reserves would not be able to meet their oil demand.
This oil politics has many fatal consequences. As cited above, oil is playing very vital rule in prosperity of west. Therefore, DC's of west have been doing and will do every thing they can in order to have a hold on oil reserves of these oil rich countries. This race for grabbing oil will result in debacle and turmoil on a global level. This will affect those countries that are neither oil seekers on a large level nor have oil reserves. Most of third world countries of Asia and countries of Latin America are included in this list. Some of consequences of oil politics are discussed below. The Wealth of Middle East countries is lying in banks of west. This situation enables west to hijack, dictate and interfere in policymaking of these oil rich countries and further aggravate economic and social conditions of these countries. The DC's, because of their pervasive influence, mold policies of these countries according to their own vested oil interest.
The west, especially US and UK, is considered as promoters of democracy. But in reality, on one hand, they force different countries to induct political governments and on other hand, they have been indirectly supporting those monarchies and kingships that suit their own interests (kingships in Saudi Arabia and military and other form of dictatorship in different countries). This shows dual standards practiced by developed countries. In all case, one must be clear about one thing; prime motive of west is to have an easy access to oil reserves of oil rich countries. Oil lust of west often results in political and physical wars. Forceful change of regimes under fake doctrine of pre-emptive measure by west, especially USA and UK, has exposed real intentions of these countries. The only aim behind these pre-emptive strikes is to induct new regimes, which can support oil interests of western countries. US attack on Afghanistan and recent US attack on Iraq have showed that USA and UK want to hold a strategic geographical position from where they can control and manipulate world's oil resources. The UDC's regimes and masses of UDC's often have to face severe consequences of wars. They are first casualties of war. First of all, war no doubt is a human tragedy. Innocent civilians, including children, men and women lose their lives. Wars, which become inevitable because of oil politicking of west, bring economic problems, especially for poor countries of world. According to United Nations, war of Iraq might create 0.6 million refugees. Those refugees will seek refuge in neighboring countries. This will increase pressure on economies of these neighboring countries. In US-Iraq war, Iraq has burnt its oil fields, which will result in an environmental disaster and coming generations will suffer from this future environmental pollution. This act of Iraqis will also cause loss of huge quantity of crude oil, as we