How Black Gold Changed the World: A Brutal History of Oil, Power, and Profit - History Collection

4. The Role of Oil in World War I

By the outbreak of World War I, oil had emerged as a critical strategic resource, reshaping military tactics and determining battlefield outcomes. The transition from coal-powered fleets to faster, more agile oil-driven warships granted significant naval advantages, notably benefiting the British Royal Navy. Armored vehicles, aircraft, and mechanized infantry all depended heavily on petroleum, highlighting oil’s central role in modern warfare. Nations scrambled aggressively to secure reliable supplies, driving geopolitical alliances and rivalries. As military planners recognized oil’s importance to national security, control over petroleum resources became synonymous with global power, fundamentally altering geopolitical strategies for decades to come.

5. Middle East as a Strategic Oil Region

In the decades following World War I, the Middle East rapidly emerged as the epicenter of global oil production, dramatically reshaping international politics. Vast reserves discovered in Saudi Arabia, Iraq, Kuwait, and neighboring nations drew intense interest from Western powers, fueling fierce competition for influence over regional governments. Oil companies, backed by powerful nations, negotiated lucrative agreements, often at the expense of local sovereignty and stability. Consequently, the Middle East became a geopolitical chessboard, with oil riches prompting interventions, alliances, and rivalries that continue to shape contemporary conflicts and power dynamics, highlighting the region’s enduring strategic significance on the world stage.

6. Oil and the Rise of Saudi Arabia

The discovery of vast oil reserves in Saudi Arabia during the 1930s dramatically altered the kingdom’s destiny, catapulting it from desert obscurity to global prominence. In 1938, American geologists uncovered enormous petroleum fields near Dammam, forever changing Saudi Arabia’s economic trajectory. Rapidly, oil revenues began to flow, funding infrastructure projects, urban expansion, and social reforms. The kingdom swiftly emerged as a pivotal player in global energy markets, leveraging its newfound wealth to assert significant geopolitical influence. This swift economic transformation not only reshaped Saudi society but also positioned the nation as a central actor in international politics and global energy security.

7. Oil Shocks of the 1970s

The 1970s witnessed two dramatic oil crises that profoundly impacted the global economy and exposed the vulnerability of energy-dependent nations. In 1973, the Organization of Petroleum Exporting Countries (OPEC) imposed an oil embargo targeting countries supporting Israel during the Yom Kippur War, rapidly quadrupling oil prices. Panic ensued, triggering severe fuel shortages, economic recession, and skyrocketing inflation worldwide. Again in 1979, the Iranian Revolution caused another drastic supply disruption, further destabilizing markets and exacerbating economic turmoil. These oil shocks demonstrated OPEC’s immense geopolitical leverage, reshaped global economic policies, and forced nations to reconsider their dependence on foreign oil.

8. America’s Oil Diplomacy

Throughout the 20th century, securing reliable access to oil profoundly shaped U.S. foreign policy, prompting strategic interventions globally, particularly in the Middle East and Latin America. Driven by energy security concerns, America supported authoritarian regimes and engaged in covert operations, including the 1953 CIA-led coup overthrowing Iran’s democratic government after it nationalized oil assets. Similarly, U.S. influence extended into Latin America, where petroleum interests guided diplomatic relationships and interventions. Oil diplomacy became integral to American strategy, intertwining economic goals with geopolitical maneuvering, and highlighting the lengths to which powerful nations would go to maintain control over crucial energy resources.

9. Oil and Environmental Disasters

The pursuit of petroleum has left behind catastrophic ecological scars, vividly illustrated by disasters such as the Exxon Valdez spill in 1989 and the Deepwater Horizon explosion in 2010. When the Exxon Valdez tanker ran aground off Alaska’s pristine coastline, millions of gallons of crude oil devastated marine ecosystems, killing wildlife and disrupting communities. Two decades later, the Deepwater Horizon rig exploded in the Gulf of Mexico, releasing unprecedented volumes of oil and contaminating vast marine habitats. These disasters highlighted the profound environmental risks associated with oil extraction and transportation, sparking global awareness and demands for stricter regulations and sustainable alternatives.

10. Nigeria’s Oil Wealth and the Resource Curse

Nigeria’s vast oil reserves, discovered in the Niger Delta in the late 1950s, promised prosperity but instead fueled corruption, conflict, and widespread poverty—a phenomenon known as the resource curse. Despite generating billions in revenue, the oil wealth rarely reached local communities. Instead, it enriched political elites and multinational corporations, breeding resentment and unrest among impoverished populations. Environmental degradation from oil spills further devastated agriculture and fisheries, exacerbating tensions. Militant groups emerged, demanding justice and compensation, plunging the region into decades of turmoil, and starkly illustrating how natural resource abundance can paradoxically trap nations in cycles of poverty and violence.

11. Venezuela’s Rise and Fall with Oil

For decades, Venezuela’s enormous oil reserves propelled rapid economic growth, funding ambitious social programs, infrastructure projects, and prosperity. However, the country’s heavy dependence on petroleum revenues left its economy dangerously vulnerable to global oil price fluctuations. When oil prices collapsed in the 2010s, Venezuela spiraled into severe economic crisis—marked by hyperinflation, shortages of basic goods, and widespread poverty. Mismanagement, corruption, and lack of economic diversification intensified the crisis, turning once-abundant wealth into a devastating burden. Venezuela’s tragic trajectory stands as a stark warning of the perils faced by nations overly reliant on oil exports, underscoring the volatility of petroleum-dependent economies.

12. Russia’s Energy Dominance

Russia has effectively leveraged its vast oil and natural gas reserves as powerful instruments of geopolitical influence, especially throughout Europe. By strategically controlling energy supply lines—such as gas pipelines traversing Ukraine and the Baltic Sea—Russia wields significant economic and political leverage, capable of shaping regional alliances and exerting pressure on neighboring states. Europe’s dependency on Russian energy has sparked concerns over energy security, prompting political tensions and strategic recalibrations. Moscow’s resource diplomacy, exemplified by disputes leading to supply disruptions, underscores how energy resources serve as pivotal tools in Russia’s broader ambition to restore and reinforce its global influence.

13. The Iraq War and Oil Interests

The 2003 invasion of Iraq reignited longstanding debates about oil’s influence on geopolitical decisions. Critics argued that securing Iraq’s substantial oil reserves played a significant, albeit controversial, role in motivating military intervention by the United States and its allies. Post-invasion, major oil companies swiftly moved to secure lucrative contracts, amplifying suspicions about the war’s underlying objectives. The conflict destabilized the region profoundly, altering global energy markets and intensifying political tensions. This contentious chapter highlights how deeply intertwined oil resources remain with international security strategies, fueling debate over morality, legitimacy, and the true drivers of military actions in resource-rich regions.

14. China’s Growing Oil Appetite

China’s rapid industrialization and urbanization have transformed it into the world’s largest oil importer, profoundly influencing its global strategies and foreign relations. Driven by surging demand, Beijing actively engages in energy diplomacy, forging strategic partnerships and making significant investments in oil-rich regions like Africa, the Middle East, and Latin America. Through initiatives such as the ambitious Belt and Road Initiative, China seeks stable petroleum supplies while simultaneously expanding its geopolitical influence. This growing oil dependence shapes China’s international alliances, investment priorities, and diplomatic maneuvers, underscoring petroleum’s enduring centrality in global power dynamics and economic competition.

15. Arctic Oil and Global Tensions

As melting ice reveals vast, previously inaccessible oil reserves beneath the Arctic seabed, a new frontier in geopolitical competition emerges. Countries like Russia, the United States, Canada, and Norway increasingly assert territorial claims and expand military presences in the region, driven by the promise of enormous petroleum wealth. This escalating rivalry raises serious concerns about environmental risks, indigenous rights, and potential conflicts over resource ownership. With billions of barrels of oil at stake, the Arctic has become a geopolitical flashpoint, highlighting how humanity’s relentless pursuit of petroleum continues to shape international tensions and fuel strategic power struggles.

Oil’s Legacy

From its discovery in Pennsylvania to today’s Arctic tensions, oil has profoundly shaped our world—driving economic prosperity, fueling geopolitical rivalries, and leaving devastating environmental scars. Throughout history, petroleum wealth has sparked both growth and conflict, enriching some nations while plunging others into turmoil. Yet, as climate concerns intensify and renewable energy sources gain prominence, oil’s dominance faces mounting challenges. The global shift toward sustainability offers an opportunity to redefine our relationship with energy, reduce geopolitical tensions, and protect our planet. Embracing this transition requires collective action, innovative thinking, and a commitment to building a future less dependent on the brutal legacy of black gold.