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Abstract: In the 1970s, soaring oil prices provided huge revenues to oil producing Arab countries, which, together with private Arab companies and individuals, invested billions of dollars in the U.S. economy. The influx of Arab petodollars drew mixed reactions from Americans. Some feared that wealthy Arabs were “buying up America” and gaining control over the nation’s political, economic, educational, and cultural institutions. Others welcomed Arab investment as a boon to the U.S. economy and to global stability. Petrodollars also played a key role in Arab American history. Demeaning portrayals of oil-rich Arabs in media and government discourse—reaching a crescendo in the FBI’s “Abscam” sting operations of 1978-1980—goaded Arab Americans to adopt more organized methods of combating anti-Arab stereotypes. Salim Yaqub draws on his new book, Imperfect Strangers: Americans, Arabs, and U.S.-Middle East Relations in the 1970s, to explore the complex legacy of Arab petrodollars in American life.

About the Speaker: Salim Yaqub is Professor of History at the University of California, Santa Barbara, and Director of UCSB’s Center for Cold War Studies and International History. He is the author of Containing Arab Nationalism: The Eisenhower Doctrine and the Middle East (University of North Carolina, 2004) and of several articles and book chapters on the history of U.S. foreign relations, the international politics of the Middle East, and Arab American political activism. His second book, Imperfect Strangers: Americans, Arabs, and U.S.-Middle East Relations in the 1970s, was published by Cornell University Press in September 2016.

Encina Hall, 2nd floor

Salim Yaqub Professor of History University of California, Santa Barbara
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William J. Perry, in a talk at the "Innovations for Smart Green Cities: What's Working, What's Not, What's Next" conference, explained how a lack of investment in energy research and development continues America's addiction to foreign oil. He illustrated how game-changing research and events could shake up the industry.
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Stanford seniors Stephen Craig and Clay Ramel have been awarded The Firestone Medal for Excellence in Undergraduate Research and The William J. Perry Prize, respectively, for their theses on German's foreign policy and the global politics of oil.

Both recipients are students of the CISAC's Undergraduate Honors Program in International Security Studies and will graduate next week.

Craig, a political science major, wrote "Tamed Tiger or Restless Beast? German Foreign Policy in the Post-Unification Period."

Ramel, a science, technology, and society major, wrote “Reconsidering the Roots of Crude Coercion: a Policymaking Analysis of `the Oil Weapon.'”

The Firestone Medal recognizes the top 10 percent of all honors theses in social science, science, and engineering. The Perry Prize is awarded to a student for excellence in policy-relevant research in international security studies. 

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Stephen Craig: "Tamed Tiger or Restless Beast? German Foreign Policy in the Post-Unification Period"

Clay Ramel: “Reconsidering the Roots of Crude Coercion: a Policymaking Analysis of “the Oil Weapon””

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Stephen Craig
Clay Ramel
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Special CISAC Seminar 

Stephen Craig

Recipient of The Firestone Medal for Excellence in Undergraduate Research 

Tamed Tiger or Restless Beast? German Foreign Policy in the Post-Unification Period

 

&

 

Clay Ramel

Recipient of The William J. Perry Prize 

Reconsidering the Roots of Crude Coercion: a Policymaking Analysis of “the Oil Weapon”

CISAC Conference Room

Stephen Craig Recipient of The Firestone Medal for Excellence in Undergraduate Research Speaker
Clay Ramel Recipient of The William J. Perry Prize Speaker
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Matthew Kroenig's argument for preventive military action to combat Tehran's nuclear program -- "Time to Attack Iran" (January/February 2012) -- suffers from three problems. First, its view of Iranian leaders' risk calculations is self-contradictory. Second, it misreads nuclear history. And third, it underestimates the United States' ability to contain a nuclear Iran. When these problems are addressed, it is clear that, contrary to what Kroenig contends, attacking Iran is not "the least bad option." 

Kroenig's view of the way Iranian leaders are willing to take on risks is deeply incongruous. In his view, a nuclear bomb will push Tehran to block U.S. initiatives in the Middle East, unleash conventional and terrorist aggression on U.S. forces and allies, and possibly engage in a nuclear exchange with Israel. This would mean Iranian leaders are reckless: given the United States' conventional and nuclear superiority, any of these actions would provoke considerable retaliation from Washington. And, of course, a nuclear exchange with Israel would invite annihilation. At the same time, Kroenig suggests that Tehran would remain remarkably timid after a preventive strike from the United States. Presented with clear redlines, Iran would not retaliate against U.S. troops and allies or attempt to close the Strait of Hormuz. Kroenig's inconsistency is clear: If Iranian leaders are as reckless as he seems to believe, a preventive strike would likely escalate to a full-blown war. If they are not, then there is no reason to think that a nuclear Iran would be uncontainable. In short, a preventive attack on Iran can hardly be both limited and necessary.

Kroenig's argument misreads nuclear history at least three times. First, he writes that a targeted preventive strike would likely wipe out the nuclear program in Iran, as strikes against Iraq in 1981 and Syria in 2007 did in those countries. These comparisons are misleading. Recent research based on captured Iraqi documents demonstrates that the 1981 Israeli attack on the Osirak reactor, near Baghdad, actually spurred a covert nuclear weapons program at other sites. Indeed, Iraqi President Saddam Hussein remained determined to revive his nuclear program until he was removed from power in 2003. What prevented him from achieving that goal was the decade-long U.S.-led containment regime put in place after the 1991 Gulf War. The Iraqi case suggests that any attacks that do not depose the Iranian regime, too, would cause it to accelerate its efforts to acquire nuclear weapons. Kroenig's prescription might therefore precipitate the very outcome he is trying to avoid. 

As for Syria, Damascus' nuclear program was just budding. The country boasted only one exploratory facility, which was shattered easily by a single aerial bombing carried out by Israel in September 2007 under the cloak of night. But Iran's nuclear program is much more advanced and is already of industrial proportions. Any attack on Tehran would involve destroying numerous nuclear-program and air-defense targets, making it far more costly and less likely to succeed than the Israeli raid against Syria's Deir ez-Zor reactor. More, Iran's advanced program reflects Tehran's greater resolve to develop nuclear capabilities, so, post-attack, Tehran would be ever more likely to double down on developing a weapon. Furthermore, although Kroenig hopes that a targeted strike would destabilize the Iranian regime, there is no basis for such optimism. Being a civilian, parliamentary, oil-rich theocracy, Iran is relatively stable. Put simply, a preventive strike against Iran can hardly be both limited and effective.

Kroenig misreads history again when he considers a nuclear exchange between Iran and Israel. In his view, they "lack nearly all the safeguards that helped the United States and the Soviet Union avoid a nuclear exchange during the Cold War." Yet the United States and the Soviet Union avoided a nuclear exchange even during the hottest crisis of the Cold War, the Cuban Missile Crisis, at a moment in which Soviet retaliatory capability was still uncertain, there were no clear direct communication channels between the two leaderships, and Soviet experience managing their nuclear arsenal was no longer than five years. Moreover, the historical record shows that even young and unstable nuclear powers have avoided nuclear escalation despite acute crises. Pakistan and India avoided nuclear war in Kargil in 1999, as well as after the terrorist attacks targeting the Indian parliament in 2001 and Mumbai in 2008. When national survival is at stake, even opaque and supposedly "irrational" regimes with nuclear weapons have historically behaved in prudent ways.

Kroenig's final abuse of history comes when he posits a cascade of nuclear proliferation across the Middle East in response to an Iranian bomb. He mentions Saudi Arabia, and implies that Egypt, Iraq, and Turkey might all follow suit. Yet none of these states, which can count on U.S. support against Iran, nuclearized in response to Israel's nuclearization (against which they cannot count on U.S. backing, mind you). And more generally, the United States has a successful record of preventing clients from acquiring nuclear weapons in response to a regional enemy, such as South Korea and Japan in response to North Korean nuclear acquisition. (Washington agreed with Pakistani nuclearization in response to India.) 

Taking the long view, Kroenig's argument reveals an unwarranted skepticism about Washington's ability to contain a nuclear Iran. This skepticism is all the more surprising considering Kroenig's work on the benefits of U.S. nuclear superiority. Existing U.S. security guarantees, based on current capabilities, give allies little incentive to nuclearize. Egypt and Saudi Arabia are among the largest recipients of U.S. military support, and Turkey is a member of NATO. Reinforcing U.S. ties with friends in the region would be easier, cheaper, and less risky than attacking the Iranian nuclear program. 

Instead, the United States should heed the lessons of the North Korean nuclearization. Not so long ago, Washington had to face an aggressive regime in Pyongyang intent on developing nuclear weapons. The United States rejected a preventive strike in 1994 for fear that the outcome would be worse than its target's nuclear acquisition. This was the right decision. After North Korea acquired nuclear weapons, none of the consequences that Kroenig's argument would predict materialized. U.S. security guarantees contained Pyongyang and persuaded South Korea and Japan not to acquire nuclear weapons. Nobody believes that the world is better off with a bomb in North Korea -- but the record shows that it hasn't brought the end of the world, either.

Military action against Iran would be a profound strategic miscalculation. For all the talk of retrenchment, the U.S. military might remains the most powerful in the world, and it can successfully minimize consequences of an Iranian bomb, should one come to pass, by containing Tehran's ambitions, dissuading regional proliferation, and providing security assurances to its allies.

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Alexandre Debs
Nuno P. Monteiro
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Reducing carbon-dioxide emissions is primarily a political problem, rather than a technological one. This fact was well illustrated by the fate of the 2009 climate bill that barely passed the U.S. House of Representatives and never came up for a vote in the Senate. The House bill was already quite weak, containing many exceptions for agriculture and other industries, subsidies for nuclear power and increasingly long deadlines for action. In the Senate, both Republicans and Democrats from coal-dependent states sealed its fate. Getting past these senators is the key to achieving a major reduction in our emissions.

Technological challenges to reducing emissions exist, too. Most pressing is the need to develop the know-how to capture carbon dioxide on a large scale and store it underground. Such technology could reduce by 90 percent the emissions from coal- fired power stations. Some 500 of these facilities in the U.S. produce 36 percent of our CO2 emissions.

But these plants aren’t evenly spaced around the country. And therein may lie the key to addressing the political and technological challenges at the same time. If the federal government would invest in carbon capture and storage, it could go a long way toward persuading politicians in every state to sign on to emission reductions.

I’ll get to the specifics of the technology shortly. But first, consider how the costs of emission reduction fall hardest on certain parts of the country: A carbon tax levied on all major sources of released CO2, the approach favored by most of the environmental community, would make energy from coal-fired power plants cost more. To make a significant difference, such a tax would have to amount to $60 a ton.

Midwest Carbon Footprint

As a result, gasoline prices would rise 26 percent, and natural gas for household usage by 25 percent, nationwide. Rich and urbanized states could probably tolerate this. The West Coast, with its hydroelectric power, and the Northeast, which relies to a large extent on natural gas, could most easily absorb the associated increase in energy costs.

But the price of energy in the rural, Midwestern states would more than quadruple because of their large carbon footprint. Midwesterners get most of their electricity from coal; they drive relatively long distances to get to work, shopping and entertainment; and rural homes and buildings use more energy for heating and cooling.

One carbon-tax proposal now being considered is a “cap and dividend” plan that would send the tax revenue back to all U.S. citizens equally. But that would also favor the rich states that are less dependent on driving and coal.

It would be more helpful for the coal-dependent states if the federal government would use revenue from a carbon tax to help develop the technology for carbon capture and storage.

And that brings us to the technological challenges: No plant of any size with the capacity for CCS yet exists, but it has been demonstrated to work at small scales. Three different processes for capturing the CO2 are being tested, and scaling them up for 500-megawatt or 1,000-megawatt facilities should be possible.

For two years, the Mountaineer plant in New Haven, West Virginia, has been capturing and storing a tiny amount of its CO2 -- 2 percent of it -- but plans to build a full-scale carbon-capture plant here have been abandoned. Because Congress has dropped any idea of imposing a tax on carbon emissions, the investment doesn’t make sense.

A large plant in Edwardsport, Indiana, was being constructed with the expensive gasification process that makes it easy to add carbon-capture facilities, but it, too, has been shelved.

China may finish its large demonstration carbon-capture plant before the U.S. gets any model up to scale. Others are planned in Europe, and a small one is operating in Germany. This plant has been unable to get permission for underground storage, so it is selling some of its CO2 to soft-drink companies and venting the rest.

Subterranean Storage

Storing captured CO2 is eminently possible, too. For 15 years, the Sleipner facility in Norway has been storing 3 percent of that country’s CO2 underneath the ocean floor, with no appreciable leakage. Algeria has a similar facility, the In Salah plant, operating in the desert.

One storage strategy under consideration in the U.S. is to inject captured CO2 into huge basalt formations off both the east and west coasts. Inside the basalt, the carbon gas would gradually turn into bicarbonate of soda.

There are other ways to dispose of carbon dioxide. It has been used for enhanced oil recovery for many decades without any danger, and has been effectively stored in depleted oil reservoirs. (The gas is dangerous only in high concentration.)

It remains uncertain how much of the captured CO2 might leak during storage. Even if this were as much as 10 percent, however, it would mean that 90 percent of it would stay underground.

As CCS technology develops, it will have to be made more efficient so that it uses less energy. As it is, the capture phase is expected to require that a power plant burn 20 percent to 25 percent more coal than it otherwise would.

The technological challenges may explain why energy companies haven’t lobbied for subsidies to develop CCS. The electric-energy sector isn’t known for innovation and risk- taking. Just look at the U.S.’s outdated power grid.

But the federal government could pay for the subsidies through a tax on carbon. Such a levy would have other advantages, too: It would raise the cost of energy to reflect the damage that burning coal and oil now do to the environment, and spur the development of renewable sources.

If states with large carbon footprints can’t accept such a tax, the CCS subsidies could be paid from the general fund. The cost to build coal-fired power plants with CCS technology is estimated to be about $5 billion to $6 billion -- about the price of a single nuclear power plant. The total price for the U.S.’s 500 large plants would be $250 billion. That’s as much as the planned modernization and expansion of our missile defense system over 10 years.

But it would slash our carbon emissions by at least 20 percent. There is no other politically possible way to cut CO2 as much, and as quickly -- in a decade or two. And devastating climate change is far more likely than a missile attack.

U.S. investment in CCS technology could also induce China and Europe to follow suit. And this would allow the world time for renewable-energy technologies to mature -- to the point where we could do away with coal burning altogether.

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Bloomberg News
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Charles Perrow
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Reuben W. Hills Conference Room

475 Via Ortega Room 336
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Stanford, CA 94305

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Burt and Deedee McMurtry Professor of Engineering
Professor of Management Science and Engineering
CISAC Affiliated Faculty Member
Chair (Emerita) of Management Science and Engineering
FSI Senior Fellow by courtesy
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Dr. M. Elisabeth Paté-Cornell was born in Dakar, Senegal. Her academic degrees are in mathematics and physics (BS, Marseilles, France, 1968), applied mathematics and computer science (MS and Engineer Degree, Institut Polytechnique de Grenoble, France, 1970; 1971), operations research (MS, Stanford, 1972), and engineering-economic systems (Stanford, PhD, 1978). She was an Assistant Professor of Civil Engineering at MIT (1978 to 1981). In 1981, she joined the Stanford Department of Industrial Engineering and Engineering Management, where she became Professor (1991), then Chair (1997). In 1999, she was named the Burt and Deedee McMurtry Professor in the Stanford School of Engineering. She oversaw from 1999, the merger of two Stanford departments to form a new department of Management Science and Engineering, which she chaired from January 2000 to June 2011. She is a Senior Fellow (by courtesy) of the Stanford Freeman Spogli Institute for International Studies. She joined CISAC as an affiliated faculty member in September 2011.

She was elected to the National Academy of Engineering in 1995, to its Council (2001-2007), and to the French Académie des Technologies (2003). She was a member of the President’s Intelligence Advisory Board (2001-2004; 2006-2008). Her current memberships include the Boards of Trustees of the Aerospace Corp. (2004-), of InQtel (2006-) and of Draper Corporation (2009-). She is a member of the Board of Advisors of the Naval Postgraduate School, which she chaired from 2004 to 2006.

She is a world leader in engineering risk analysis and management and more generally, the use of Bayesian probability to process incomplete information. Her research and that of her Engineering Risk Research Group at Stanford have focused on the inclusion of technical and management factors in probabilistic risk analysis models with applications to the NASA shuttle tiles, offshore oil platforms and medical systems. Since 2001, she has combined risk analysis and game analysis to assess intelligence information and risks of terrorist attacks.

She is past president (1995)/fellow of the Society for Risk Analysis, and fellow of the Institute for Operations Research and Management Science. She has been a consultant to many industrial firms and government organizations. She has authored or co-authored more than a hundred papers in refereed journals and conference proceedings. She has received several best-paper awards from professional organizations and peer-reviewed journals.

See profile here.

Elisabeth Paté-Cornell Professor and Chair, Department of Management Science and Engineering; Affiliated Faculty Member, CISAC; Senior Fellow by courtesy, FSI Speaker
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Russia watchers in the West cannot be surprised that Vladimir Putin is on his way back to the Russian presidency. Dmitri Medvedev was always his protégé, and there was no doubt that major decisions could not be made without his approval. This includes signing the New START arms control treaty, cooperating with NATO in Afghanistan and supporting U.N. sanctions on Iran — all of which should provide reassurance that Putin’s return won’t undo the most important accomplishments of the U.S.-Russia “reset.”

Yet the relationship with the West will inevitably change. For one thing, Putin can have nothing like the rapport his protégé developed with President Obama, which was built upon the two leaders’ shared backgrounds as lawyers, their easy adoption of new technologies, and their fundamentally modern worldviews.

The Bilateral Presidential Commission which Obama and Medvedev created and charged with advancing U.S.-Russia cooperation on everything from counterterrorism to health care may suffer. The relationship as a whole is not adequately institutionalized, and depends on the personal attention of Russian officials who will likely avoid taking action without clear direction from Putin, or who may be removed altogether during the transition.

Putin’s return to the presidency will also provide fodder for Western critics bent on portraying Obama and the reset as a failure, or dismissing Putin’s Russia as merely a retread of the Soviet Union.

These critics are wrong — today’s Russia bears little resemblance to what Ronald Reagan dubbed an “evil empire” — but Putin has been far more tolerant of Soviet nostalgia than his junior partner, and his next term will surely bring a new litany of quotations about Soviet accomplishments and Russia’s glorious destiny that will turn stomachs in the West.

Although he has spent his entire career within the apparatus of state power, including two decades in the state security services, Putin is at heart a C.E.O., with a businessman’s appreciation for the bottom line. Western companies already doing business in Russia can expect continuity in their dealings with the state, and it will remain in Russia’s interest to open doors to new business with Europe and the United States. The next key milestone for expanding commercial ties will be Russia’s planned accession to the World Trade Organization, which could come as soon as December.

At home, Putin faces a looming budget crisis. As the population ages and oil and gas output plateaus the government will be unable to continue paying pensions, meeting the growing demand for medical care, or investing in dilapidated infrastructure throughout the country’s increasingly depopulated regions.

This means that while Putin will seek to preserve Russia’s current economic model, which is based on resource extraction and export, he will be forced to assimilate many of his protégé’s ideas for modernizing Russia’s research and manufacturing sectors. Medvedev’s signature initiative, the Skolkovo “city of innovation,” will likely receive continuing support from the Kremlin, although it will have little long-term impact without a thorough nationwide crackdown on corruption and red tape.

Putin’s restored power will be strongly felt in Russia’s immediate neighborhood, which he has called Moscow’s “sphere of privileged interests.” Even though Kiev has renewed Russia’s lease on the Black Sea Fleet’s Sevastopol base through 2042 and reversed nearly all of the previous government’s anti-Russian language and culture policies, Ukraine is unlikely to win a reprieve from high Russian gas prices. Putin will also continue to press Ukraine to join the Russia-dominated customs union in which Kazakhstan and Belarus already participate. He may also take advantage of Belarus’s deepening economic isolation and unrest to oust President Aleksandr Lukashenko in favor of a more reliable Kremlin ally.

Putin and Medvedev have been equally uncompromising toward Georgia. Both are openly contemptuous of Georgian President Mikheil Saakashvili, and it is unlikely that any progress on relations can occur until Georgia’s presidential transition in 2013.

Putin has good reason to continue backing NATO operations in Afghanistan to help stem the flow of drugs, weapons and Islamism into Tajikistan, Uzbekistan and Russia itself. Moreover, as China extends its economic hegemony into Central Asia, he may find America to be a welcome ally.

Putin appreciates the advantages of pragmatic partnerships and will seek to preserve the influence of traditional groupings like the U.N. Security Council and the G-8 while at the same time promoting alternatives like the Shanghai Cooperation Organization and the Brics.

The succession from Putin to Medvedev and back again was decided behind closed doors, and the formal transition of power is likely to take place with similar discipline. This should offer the West and the wider world some reassurance. Putin’s return to the presidency is far from the democratic ideal, but it is not the end of “reset.” Many ordinary Russians support him because he represents stability and continuity of the status quo and, for now, that is mostly good for Russia’s relations with the West.

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Matthew Rojansky
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Introduction

This essay examines the two biggest environmental polluters, the oil and coal industries, and the possibilities of renewable energy that could replace them. I see the masters of these organisations, CEOs and top officials in the case of corporations, and state leaders in the case of command economies such as China or Saudi Arabia, as responding to nearterm demands and interests at the expense of long-term ones, thus endangering the planet. In the case of democratic nations, the firms seek to manipulate public opinion to ignore warnings about their emissions, and government representatives and officials to forestall changes that would threaten their interests. Meanwhile, because of their success in the areas of public opinion and legislation, there is insufficient funding for promising energy alternatives that are carbon-free.

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Routledge in "Handbook of Society for Climate Change"
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Charles Perrow
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