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Carbon Democracy: Political Power in the Age of Oil QUOTES

3 " As the producer states gradually forced the major oil companies to share with them more of the profits from oil, increasing quantities of sterling and dollars flowed to the Middle East. To maintain the balance of payments and the viability of the international financial system, Britain and the United States needed a mechanism for these currency flows to be returned. [...]

The purchase of most goods, whether consumable materials like food and clothing or more durable items such as cars or industrial machinery, sooner or later reaches a limit where, in practical terms, no more of the commodity can be used and further acquisition is impossible to justify. Given the enormous size of oil revenues, and the relatively small populations and widespread poverty of many of the countries beginning to accumulate them, ordinary goods could not be purchased at a rate that would go far to balance the flow of dollars (and many could be bought from third countries, like Germany and Japan – purchases that would not improve the dollar problem). Weapons, on the other hand, could be purchased to be stored up rather than used, and came with their own forms of justification. Under the appropriate doctrines of security, ever-larger acquisitions could be rationalised on the grounds that they would make the need to use them less likely. Certain weapons, such as US fighter aircraft, were becoming so technically complex by the 1960s that a single item might cost over $10 million, offering a particularly compact vehicle for recycling dollars. Arms, therefore, could be purchased in quantities unlimited by any practical need or capacity to consume. As petrodollars flowed increasingly to the Middle East, the sale of expensive weaponry provided a unique apparatus for recycling those dollars – one that could expand without any normal commercial constraint. "

Timothy Mitchell , Carbon Democracy: Political Power in the Age of Oil

6 " ...the Nixon administration also blocked the efforts of the UN and the Arab states, and at times even its own State Department, to settle the Palestine question, helping to maintain the forms of instability and conflict on which American ‘security’ policy would now increasingly depend. In Kurdistan, the other conflict keeping Arab states ‘pinned down’, Washington was unable to prevent Iraq from reaching a settlement with the Kurds in 1970, but responded to this threat of stability in the Gulf two years later by agreeing with Israel and Iran to reopen the conflict with renewed military support to one of the Kurdish factions. The aim was not to enable the Kurds to win political rights, according to a later Congressional investigation, but simply to ‘continue a level of hostilities sufficient to sap the resources of our ally’s neighboring country [Iraq]’.


The arms sales to Iran and their supporting doctrine played no important role in protecting the Gulf or defending American control of the region’s oil. In fact the major US oil companies lobbied against the increased supply of weapons to Iran and the doctrine used to justify them. They argued that political stability in the Gulf could be better secured by America ending its support for Israel’s occupation of Arab territories and allowing a settlement of the Palestine question. The Nixon administration had also initiated a large increase in the sale of arms to Israel, although weapons sent to Israel were paid for not with local oil revenues but by US taxpayers. Arming Iran, an ally of Israel, the companies argued, only worsened the one-sidedness of America’s Middle East policy. "

Timothy Mitchell , Carbon Democracy: Political Power in the Age of Oil