Relevance : GS Paper II
Theme of the Article
By destabilising regions that supply oil and gas, US is keeping Rising Asia off-balance.
Introduction
The geography, politics, security and stability of West Asia over the past century have always been about oil.
The Recent Shift
With US becoming energy self-reliant, its focus has shifted to retaining control over the sources of supply.
Oil Supply Disruption and Asian Economy
- Asian economies depend critically on Gulf oil.
- India’s dependence on imported oil has risen sharply.
- Destabilization of the market is hurting several developing countries.
- US hostility towards Venezuela and Iran is causing supply constraints.
- Regime change in Venezuela is also impacting the supply of oil
- After Sunni, US has been seeking to secure control of the oil exporting Shia world.
What lies ahead for India?
- Any denial of access to new sources of energy or any increase in the cost of energy can only hurt India’s growth prospects.
- India has a stake in ensuring peace and stability in the Persian Gulf.
- India can diversify its sourcing of oil and reduce its dependence on Iranian oil.
- If US is insensitive to India’s concerns, India will have to seriously rethink its foreign policy options.