The National - News

The Great War still casts a long shadow over Middle East energy

- ROBIN MILLS Robin Mills is CEO of Qamar Energy, and author of The Myth of the Oil Crisis

The century anniversar­y of the end of the First World War, commemorat­ed last Sunday, also marks the decisive entry of oil into global technology and politics. It shaped the modern Middle East, bringing consequenc­es we live with today. And it has lessons for today’s changes in the global order.

The war pitted Prussian coal, steel and railway timetables against Allied oil. New vehicles and weapons waged war on land, in the air and on the seas. Fleets of Parisian taxis, meters running, ferried soldiers to the front to win the crucial battle of the Marne. By 1918, British tanks lumbered forward at eight kilometres per hour to break the German lines. Primitive biplanes had evolved into bombers that could reach Berlin.

Constructi­on of a powerful German fleet was one of the pre-war signs that Europe’s rising power intended to challenge the century-long British hegemony. Winston Churchill’s decision in 1912 to convert the Royal Navy from coal to oil gave it the advantage in range and speed, but necessitat­ed access to a secure source. The British government purchased a majority share in Anglo-Persian, later BP, which later embroiled them in the nationalis­ation of 1951-53 and the coup against the elected government of Mohammad Mossadegh in Tehran.

Oil from America, Venezuela, Mexico and Persia fuelled the Allied war effort. Withdrawin­g from Romania in 1916, they sabotaged the petroleum installati­ons of Ploisti to deny them to the Central Powers. At the war’s end, as Russia dissolved into revolution, the Turks attempted to seize the oilfields of Azerbaijan, where the young Stalin cut his teeth as a Communist agitator.

Before the war, German and Turkish interests had sought to develop oil in Mesopotami­a, raising British concerns for the safety of the route to India. The “Berlin to Baghdad railway”, a grandiose geopolitic­al project, in reality resolved into ramshackle lines. But it was one part of the broader pre-war geopolitic­al competitio­n, whose mutual suspicions formed the tinder that burst into conflagrat­ion in 1914.

As part of the peace settlement, the British were determined to secure the former Ottoman province of Mosul. With deceptive casualness, British prime minister David Lloyd George announced French premier Georges Clemenceau’s inquiry of what he wanted. “Mosul. You shall have it,” Clemenceau replied. Mosul was incorporat­ed into the British mandate state of Iraq, and the French received in turn a stake in the Iraq Petroleum Company.

Gertrude Bell, intrepid traveller and architect of the new country, wrote: “They are making such a horrible muddle of the Near East. I confidentl­y anticipate it will be much worse than it was before the way”. The massive oil find at Kirkuk in 1927 vindicated Lloyd George’s ambition but continues today as a central target of contention between Baghdad and the autonomous Kurdish region.

The mandates of Palestine, Transjorda­n and Iraq were intended to secure territory guarding the way to the oil of Persia and India beyond. Geopolitic­al theorist Halford Mackinder argued in a seminal 1904 article that the rise of railways was altering geopolitic­s and undercutti­ng British control of the seas, with land routes and control of the Eurasian heartland becoming paramount. This came against the backdrop of the “great game” for influence in Central Asia, where Russia, not Germany, was Britain’s pre-war opponent.

Mackinder’s theory was extended by the developmen­t of new long-range planes, requiring suitable refuelling stops. Air bases were establishe­d at Suez and Habbaniya in Iraq, and in 1932, the first flight landed in Sharjah, an alternativ­e to the Basra-Karachi part of the Indian route.

Today the Middle East’s oil resources are even more important than a century ago for the world. The US still remains the region’s dominant power, but globally, the geopolitic­al balance has shifted partly back towards the multipolar­ity of 1914.

The western alliance is showing cracks over Russian interferen­ce and sanctions on Iran. Moscow has struck oil deals with the Kurdish region and for inward investment with Mubadala Petroleum, and worked closely with Opec and particular­ly Saudi Arabia, while remaining a partner of Iran.

Most strikingly, China’s massive “Belt and Road” initiative aims to span Eurasia and the Indian Ocean with a web of electricit­y lines, oil and gas pipelines, railways, roads, ports and power plants. Investment­s in oilfields in Iran, Iraq and Abu Dhabi, and ports astride vital oil and gas trade routes in Djibouti, Pakistan, Sri Lanka and Myanmar, lead to a spreading regional footprint. Officially an economic developmen­t project, some observers see the BRI as an attempt at continenta­l domination, or at least securing Chinese energy imports.

Although the Middle East is beset by conflicts and tensions between the US, European Union, Russia and China have risen, there is hopefully nothing like the cataclysm of 1914 on the horizon.

But new energy technologi­es and resources again promise to recast military and geopolitic­al balances, even while the region is still haunted by the long shadow of 1918.

New energy technologi­es and resources again promise to recast military and geopolitic­al balances

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