Abstract
Analysis of energy markets has long focused on the concern that fossil fuels might be used as instruments of coercion. In this chapter, we review the state of knowledge on the relationship between energy, coercion, and sanctions. We argue that historical concerns in the major energy-importing countries regarding the potential for coercion have largely been misguided: the structure of energy markets makes it difficult to use the fossil fuels that form the basis of our energy system as instruments of coercion or to enforce changes in target states’ behavior. We suggest there are nevertheless a number of important questions that remain amenable to further research. First, more research is needed to understand the implications of energy supply chains in which production, transportation, refining, and distribution are no longer handled by the same companies or dominated by the same countries. Second, recent sanctions efforts suggest that oil consumers may gain leverage vis-à-vis producers, yet the effectiveness of sanctions against energy exporters remains poorly understood, including sanctions that target the financial activities that underpin their ability to settle trades in oil and gas. Third, scholars interested in energy could also profitably study the relationship between the energy sector and interest groups politics, both in targeted countries and those seeking to impose costs through the manipulation of energy markets.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Adelman, M. A. (1980). The clumsy cartel. The Energy Journal, 1(1), 43–53.
Adelman, M. A. (1984). International oil agreements. The Energy Journal, 5(3), 1–9.
Baldwin, D. A. (1985). Economic statecraft. Princeton: Princeton University Press.
Bapat, N. A., et al. (2013). Determinants of sanctions effectiveness: Sensitivity analysis using new data. International Interactions, 39(1), 79–98.
Barnhart, M. (1988). Japan prepares for total war: The search for economic security, 1919–1941. Ithaca: Cornell University Press.
Blanchard, O. J., & Jordi, G. (2007). The macroeconomic effects of oil shocks: Why are the 2000s so different from the 1970s? W13368. Cambridge, MA: National Bureau of Economic Research.
Bohi, D. R. (1989). Energy price shocks and macroeconomic performance. Washington, DC: Resources for the Future.
Bohi, D. R., & Russell, M. (1978). Limiting oil imports: An economic history and analysis. Washington, DC: The Johns Hopkins University Press.
BP. (2014). Statistical review of world energy (. http://bp.com/statisticalreview)
Clayton, B. (2015). Market madness: A century of oil panics, crises, and crashes. Oxford: Oxford University Press.
Click, R. W., & Weiner, R. J. (2010). Resource nationalism meets the market: Political risk and the value of petroleum reserves. Journal of International Business Studies, 41, 783–803.
Cordesman, A. H., & Lin, A. (2015). The Iranian sea-air-missile threat to Gulf shipping. Washington, DC: Center for Strategic and International Studies.
Council on Foreign Relations. (2006). National security consequences of U.S. oil dependency. Independent Task Force Report 58. New York: Council on Foreign Relations.
Drezner, D. W. (1999). The sanctions paradox: Economic statecraft and international relations. New York: Cambridge University Press.
Drezner, D. W. (2000). Bargaining, enforcement, and multilateral sanctions: When is cooperation counterproductive? International Organization, 54(1), 73–102.
Fattouh, B. (2007). How secure are Middle East oil supplies? Oxford Institute for Energy Studies (WPM 33). Oxford: Oxford Institute for Energy Studies.
Feaver, P., & Lorber, E. (2010). Coercive diplomacy and the new financial levers: Evaluating the intended and unintended consequences of financial sanctions (August 19). Available at SSRN: http://ssrn.com/abstract=1661963
Gholz, E. (2009a). The Strait Dope: Why Iran can’t cut off your oil. Foreign Policy, August.
Gholz, E. (2009b, December). Threats to oil flows through the Strait of Hormuz, Robert Strauss Center on International Security and Law Working Paper. Austin: LBJ School of Public Affairs.
Gholz, E., & Press, D. G. (2008, August 21). All the oil we need. New York Times.
Gholz, E., & Press, D. G. (2010a). Cold War Two?: The (Il)logic of a struggle with China for resources in the developing world. In S. Van Evera & S. Shah (Eds.), The prudent use of power in American national security strategy (pp. 115–127). Cambridge: The Tobin Project.
Gholz, E., & Press, D. G. (2010b). Protecting ‘The prize:’ Oil in American grand strategy. Security Studies, 19(3), 453–485.
Gholz, E., & Press, D. G. (2013). Enduring resilience: How oil markets handle disruptions. Security Studies, 22(1), 139–147.
Glaeser, E. L. (2013). A nation of gamblers: Real estate speculation and American history. American Economic Review: Papers and Proceedings, 103(3), 1–42.
Goldthau, A. (2012). A public policy perspective on global energy security. International Studies Perspectives, 13(1), 65–84.
Goldthau, A., & Sitter, N. (2015). A liberal actor in a realist world: The EU regulatory state and the global political economy of energy. Oxford: Oxford University Press.
Hamilton, J. D. (1983). Oil and the macroeconomy since World War II. The Journal of Political Economy, 91(2), 228–248.
Hirschman, A. O. (1980 [1945]). National power and the structure of foreign trade. Los Angeles: University of California Press.
Hufbauer, G. C., Schott, J. J., Elliott, K. A., & Oegg, B. (2007). Economic sanctions reconsidered (3rd ed.). Washington, DC: Institute for International Economics.
Hughes, L. (2014). Globalizing oil: Firms and oil market governance in France, Japan, and the United States. New York: Cambridge University Press.
Hughes, L., & Long, A. (2015). Is there an oil weapon?: Security implications of changes in the structure of the international oil market. International Security, 39(3), 152–189.
International Monetary Fund. (2011). World economic outlook August 2011. New York: International Monetary Fund.
Jentleson, B. W. (1986). Pipeline politics: The complex political economy of East–West energy trade. Ithaca: Cornell University Press.
Kalicki, J. H. (2015, May 12). How an Iran nuclear deal means cheaper oil and why Tehran is OK with that, Reuters.
Kapstein, E. B. (1990). The insecure alliance: Energy crises and Western politics. New York: Oxford University Press.
Kelanic R. (2012). Black gold and blackmail: The politics of international oil coercion. PhD Dissertation, University of Chicago.
Kelanic, R. (2016). The petroleum paradox: Oil, coercive vulnerability, and great power behavior. Security Studies, 25(2), 181–213.
Keohane, R. (1984). After hegemony: Cooperation and discord in the world political economy. Princeton: Princeton University.
Kirshner, J. (1997). The microfoundations of economic sanctions. Security Studies, 6(3), 32–64.
Klare, M. (2015, March 3). Hard power, soft power, energy power. Foreign Affairs.com.
Klinghoffer, A. J. (1989a). Embargo-busting: Arab oil deliveries to South Africa. Middle East Review, 22(2), 25–29.
Klinghoffer, A. J. (1989b). Oiling the wheels of apartheid: Exposing South Africa’s secret oil trade. Boulder: Lynne Rienner.
Levi, M. (2013a). The enduring vulnerabilities of oil markets. Security Studies, 22(1), 132–138.
Levi, M. (2013b). The power surge: Energy, opportunity, and the battle for America’s future. New York: Oxford University Press.
Licklider, R. (1988). The power of oil: The Arab oil weapon and the Netherlands, the United Kingdom, Canada, Japan, and the United States. International Studies Quarterly, 32(2), 205–226.
Martin, L. L. (1994). Coercive cooperation: Explaining multilateral economic sanctions. Princeton: Princeton University Press.
Milward, A. (1977). War, economy, and society, 1939–1945. Berkeley: University of California Press.
Mirski, S. (2013). Stranglehold: The context, conduct and consequences of an American naval blockade of China. Journal of Strategic Studies, 36(3), 385–421.
Moran, T. H. (1987). Managing an oligopoly of would-be sovereigns: The dynamics of joint control and self-control in the international oil industry past, present, and future. International Organization, 41(4), 575–607.
Navias, M. S., & Hooton, E. R. (1996). Tanker wars: The assault on merchant shipping during the Iran–Iraq crisis, 1980–1988. London: Tauris Academic Studies.
Nöel, P. (2008). Beyond dependence: How to deal with Russian gas. Paris: European Council on Foreign Relations.
Nowell, G. P. (1994). Mercantile states and the world oil cartel, 1900–1939. Ithaca: Cornell University Press.
Painter, D. (1986). Oil and the American century: The political economy of U.S. foreign oil policy, 1941–1954. Baltimore: Johns Hopkins University Press.
Sampson, A. (1975). The Seven Sisters: The great oil companies and the world they shaped. London: Viking Books.
Samuels, R. J. (1987). The business of the Japanese state: Energy markets in comparative and historical perspective. Ithaca: Cornell University Press.
Schuessler, J. (2010). The deception dividend: FDR’s undeclared War. International Security, 34(4), 133–165.
Segal, P. (2011). Oil price shocks and the macroeconomy. Oxford Review of Economy, 27(1), 169–185.
Stern, R. (2016). Oil scarcity ideology in U.S. foreign policy 1908–1997. Security Studies, 25(2), 214–257.
Stoff, M. B. (1980). Oil, war, and American security: The search for a national policy on foreign oil. New Haven: Yale University Press.
Stulberg, A. (2007). Well-oiled diplomacy: Strategic manipulation and Russia’s energy statecraft in Eurasia. Albany: State University of New York Press.
Talmadge, C. (2008). Closing time: Assessing the Iranian threat to the Strait of Hormuz. International Security, 33(1), 82–117.
Tostensen, A., & Bull, B. (2002). Are smart sanctions feasible? World Politics, 54(3), 373–403.
Trachtenberg, M. (2006). The craft of international history: A guide to method. Princeton: Princeton University Press.
U.S. Department of Defense. (2013). Fiscal year 2012 operational energy annual report. Washington: U.S. Department of Defense.
U.S. Energy Information Administration. (2013). U.S. energy intensity projected to continue its steady decline through 2040, Today in Energy, March 1.
Van de Graaf, T. (2013a). The politics and institutions of global energy governance. Basingstoke: Palgrave.
Van de Graaf, T. (2013b). The oil weapon reversed? Sanctions against Iran and US-EU structural power. Middle East Policy, 20(3), 145–163.
Victor, D. G., Jaffe, A. M., & Hayes, M. H. (Eds.). (2006). Natural gas and geopolitics: From 1970 to 2040. New York: Cambridge University Press.
Yergin, D. (1990). The prize: The epic quest for oil, money & power. New York: Simon & Schuster.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2016 The Author(s)
About this chapter
Cite this chapter
Hughes, L., Gholz, E. (2016). Energy, Coercive Diplomacy, and Sanctions. In: Van de Graaf, T., Sovacool, B., Ghosh, A., Kern, F., Klare, M. (eds) The Palgrave Handbook of the International Political Economy of Energy. Palgrave Handbooks in IPE. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-55631-8_20
Download citation
DOI: https://doi.org/10.1057/978-1-137-55631-8_20
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-55630-1
Online ISBN: 978-1-137-55631-8
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)