After the 1973 Arab-Israeli war, the main oil-
producing states found themselves with revenues
vast enough to assure them a clear position of
influence throughout the Muslim world. Saudi
Arabia, in particular, found itself in a position to
export its conservative Wahhabi form of Islam
through international development and charity
projects, supporting international Islamic asso-
ciations, and even distributing Wahhabi texts in
mosques and madrasas throughout the world.
Oil also provides an incentive for immigration to
oil-producing countries, particularly in the Gulf,
where annually millions of foreigners from all
over the world go to work in the oil industry and
remit money back to their home countries.
Oftentimes foreign policies from within and
without oil-producing countries are heavily influ-
enced or dictated by the need for cheap oil. In
1996, for example, the taliban came to power
in aFghanistan, and were at first supported by
the United States, in part because a huge pipeline
project was at the time under negotiation between
the Taliban and UNOCAL, a major American oil
company.
Oil was also a crucial factor in the two gUlF
Wars between the United States and Iraq. In
August 1990 Saddam hUsayn (r. 1979–2003),
the Iraqi president, ordered the invasion of
Kuwait largely because of concerns that Kuwait
was undermining oil prices. In January 1991 the
United States led a coalition to drive Iraq out
of Kuwait, a decision heavily influenced by the
concern of the administration of George H. W.
Bush that Saddam Hussein would seize control
of Saudi oilfields. Further, in March 2003, the
administration of George W. Bush also invaded
Iraq. One of the primary reasons for this deci-
sion was the belief that, by seizing control of
the country with the second largest proven oil
reserves, the United States could weaken Saudi
Arabia’s leverage over oil pricing and exercise
greater control over access to the world’s major
petroleum resources. Further, the Bush adminis-
tration sought to ensure U.S. energy security and
protect American consumers from the prospect of
rising oil prices.
Historically, oil prices have widely fluctuated.
Two major oil crises, the first engendered by the
1973 OPEC oil embargo and the second by the
iranian revolUtion oF 1978–79, drove oil prices
up sufficiently high to damage Western economies.
As of 2006 oil prices reached record highs at $75
per barrel, largely caused by demand for motor
fuel in the United States, damage caused by Hurri-
cane Katrina to American oilfields, rebel attacks in
Nigeria that damaged the country’s oil output, the
virtual collapse of Iraq’s oil industry following the
American invasion, fears of a U.S. strike on Iran,
and increasing demand by rapidly industrializing
countries. In 2008, oil prices exceeded $150 per
barrel, then began a rapid decline.
See also arab-israeli conFlicts; gUlF states;
islamism; madrasa; Wahhabism.
Joshua HoffmanFurther reading: Norman J. Hyne, Nontechnical Guide
to Petroleum Geology, Exploration, Drilling, and Produc-
tion (Tulsa, Okla.: Penn Well Corp., 2001); Oystein
Noreng, Oil and Islam: Social and Economic Issues
(Chichester, N.Y.: J. Wiley and Sons, 1997); Francisco
Parra, Oil Politics: A Modern History of Petroleum (Lon-
don and New York: I.B. Tauris, 2004); Ian Rutledge,
Addicted to Oil: America’s Relentless Drive for Energy
Security (New York: Palgrave Macmillan, 2005); Tobey
Shelley, Oil: Politics, Poverty, and the Planet (New York:
Palgrave Macmillan, 2005).Oman See gulf states.
Organization of Petroleum Exporting
Countries (OPEC)
OPEC is an international body consisting of 11
countries, the purpose of which is to coordinate
its members’ oil-producing and selling policies.
Founded in 1960 by iran, iraq, Kuwait, saUdi
arabia, and Venezuela, it has since expanded toOrganization of Petroleum Exporting Countries 533 J