Michael T. Klare, in Rising Powers, Shrinking Planet, writes that the United States produced more than its actual use of energy- it exported the rest - and this drove the country’s prosperity in the post World War II era. America’s dominance in this period rested on its enormous economic growth, and its military power. Both rely on oil. However,
Domestic oil production reached a peak in 1970 and has been in decline ever since — with a growing dependency on imported oil as the result. When it came to reliance on imports, the United States crossed the 50% threshold in 1998 and now has passed 65%.
In contrast, Russia is now "is the world’s second leading producer of oil (after Saudi Arabia), and is its top producer of natural gas."
Russia supplies its neighbouring countries with most of its energy requirements. It now has growing influence on the shape of politics in Europe, and increasingly the rest of the world. This has undermined America’s influence.
Today, the Shiite Hezbollah in Lebanon took control of west Beirut from the government. There is now an arc of Shia Muslims in control from Iraq in the South West, through Iran, to Lebanon in the North. To the right of this arc the Sunni countries of Kuwait, Saudi Arabia, and the United Arab Emirates, and to the left is Israel, Jordan and Egypt.
Even with this shift of power the OPEC countries, on a request by America, refuses to increase production to reduce the price of oil from its current $126 per barrel. They see no benefit.
In the past these Sunni kingdoms were happy to supply cheap oil to America because it assured them of their security against Shiite Iran. Now, with the failing war in Iraq, these countries are not sure that America can provide the stability they need. They continue to supply the oil but now it’s more for dollars then guarantees of stability.
In the politics of power countries look after their own interests.
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