ABSTRACT
This chapter first reviews the geopolitics of oil “rents,” especially after the sudden massive price hikes in Middle Eastern oil following the 1973 Arab–Israeli War and how they affected domestic, regional, and international relations. The oil rents have had a direct impact on the stability of local regimes and their relations with the West. Even more significant has been the impact of oil revenues on the acceleration of urbanization, the rapid expansion of educational systems, and the importation of foreign labor during succeeding decades. After providing a historical overview of the so-called “oil effects,” this chapter’s focus then shifts to the paradoxical effects of oil rents on local regimes and the intensification of competition between states in the region over pipeline politics. The growing presence of the key Asian players, including China and India, in the Middle East merits particular attention.
