A Century of War

1. Oil's Central Role in 20th-Century Power Struggles

No other element has shaped the history of the past one hundred years so much as the fight to secure and control the world’s reserves of petroleum.

Petroleum's Rise to Power. The 20th century witnessed the ascent of petroleum from a niche product to the lifeblood of modern economies and military power. This transformation fueled intense competition and conflict, as nations recognized the strategic importance of controlling oil resources. The book argues that the struggle for oil has been a central, often hidden, driver of major global events.

Beyond Simple Greed. The book emphasizes that the fight for oil was not merely about corporate profits, but about geopolitical power and national security. Control over oil reserves became a means to exert influence over other nations, shape global trade, and maintain military dominance. This struggle transcended simple economic considerations, becoming a core element of international relations.

A Century of Conflict. The book traces how the quest for oil has been a recurring theme in major conflicts, from World War I to the Cold War and beyond. The control of oil fields, pipelines, and shipping routes became a key objective in military strategy, and the denial of oil to rivals became a powerful weapon. This highlights the enduring link between energy resources and global power dynamics.

2. British Imperialism: A Blueprint for Global Control

Britain’s genius has been a chameleon-like ability to adapt that policy to a shifting international economic reality.

The Three Pillars of Empire. The British Empire, at its peak, rested on three pillars: naval supremacy, control of international banking, and domination of key raw materials, including oil. This combination allowed Britain to exert influence over global trade, finance, and resource flows, creating a system of "informal empire" that extended beyond formal colonial possessions.

Free Trade as a Weapon. Britain used the doctrine of "free trade" as a tool to maintain its dominance, manipulating trade terms to its advantage and undermining the economic sovereignty of rival nations. This policy, while seemingly benign, was designed to ensure British control over global markets and resources. The repeal of the Corn Laws in 1846, for example, was a calculated move to benefit British merchants at the expense of domestic agriculture.

The Art of Shifting Alliances. British foreign policy was characterized by a cynical pragmatism, shifting alliances as needed to maintain a balance of power on the European continent. This strategy, often referred to as "balance of power diplomacy," was designed to prevent any single power from becoming too dominant and threatening British interests. The shift from supporting Ottoman Turkey to backing Russia against Germany is a prime example.

3. Germany's Rise and the Seeds of World War I

Since Germany became the politically and economically strongest Continental power, did England feel threatened from Germany more than from any other land in its global economic position and its naval supremacy.

Germany's Industrial Miracle. Germany's rapid industrialization in the late 19th century, fueled by technological innovation and a focus on national economic development, posed a direct challenge to British hegemony. This "Wirtschaftswunder" (economic miracle) led to a dramatic increase in German industrial output, surpassing Britain in key sectors like steel and chemicals.

Naval and Rail Challenges. Two specific aspects of Germany's rise alarmed the British: the development of a modern German navy, which threatened British naval dominance, and the construction of the Berlin-Baghdad Railway, which would have created a direct land route from Europe to the Middle East, bypassing British sea lanes. These developments were seen as a direct threat to British strategic interests.

Oil as a Hidden Motive. While not the sole cause, the growing importance of oil as a fuel for naval vessels and industry added another layer of complexity to the Anglo-German rivalry. Germany's lack of secure oil supplies made the Berlin-Baghdad Railway even more strategically important, while Britain sought to control oil resources in the Middle East to maintain its naval advantage.

4. Petroleum as a Weapon: The Great War and Beyond

The Allies were carried to victory on a flood of oil…Without oil, how could they have procured the mobility of the fleet, the transport of their troops, or the manufacture of several explosives?

Oil's Strategic Importance. World War I demonstrated the crucial role of petroleum in modern warfare. The shift from coal to oil for naval vessels, tanks, and aircraft made access to secure oil supplies a matter of life and death for the warring nations. This realization transformed oil into a strategic weapon.

The Secret Eastern War. While the Western Front was the focus of much of the fighting, a secret war for control of oil resources was being waged in the Middle East. The Sykes-Picot Agreement, a secret pact between Britain and France, revealed their intent to carve up the Ottoman Empire and control its oil-rich regions after the war.

Betrayal and Broken Promises. Britain made conflicting promises to Arab leaders, promising them independence in exchange for their support against the Ottoman Empire, while simultaneously planning to divide the region with France. This betrayal highlights the cynical nature of power politics and the central role of oil in shaping postwar boundaries.

5. Anglo-American Rivalry and the New World Order

The central ambition of the realist school of American politicians is to win for America the position of leading nation in the world, and also of leader among the English-speaking nations.

Morgan's Role in the War. The United States, initially neutral, became a major supplier of war materials to Britain and its allies, with J.P. Morgan & Co. acting as the sole purchasing agent. This arrangement gave Morgan enormous influence over the U.S. economy and created a financial dependence of Britain on American capital.

Conflicting Goals. While Britain emerged from World War I as a territorial victor, the United States, or at least its powerful financial interests, emerged as the dominant economic power. This led to a period of intense rivalry between the two nations, as both sought to shape the postwar world order to their advantage. The struggle for control of oil resources was a key aspect of this rivalry.

The Rise of New York. The war shifted the center of global finance from London to New York, as American banks gained unprecedented power and influence. The creation of the Federal Reserve System and the mobilization of American capital for the war effort solidified New York's position as a major financial hub. This shift challenged the traditional dominance of the City of London.

6. The Bretton Woods System and the Rise of Big Oil

The combined power of its military dominance and monetary dominance allowed the United States the enviable luxury of printing endless paper certificates, its dollars, and giving them to the rest of the world in exchange for well-engineered cars, machinery, textiles and every imaginable product.

The Dollar as World Reserve Currency. The Bretton Woods Agreement of 1944 established the U.S. dollar as the world's reserve currency, pegged to gold at $35 per ounce. This system gave the United States enormous economic power, allowing it to print dollars and finance its trade deficits. The system was also designed to favor the interests of American oil companies.

Marshall Plan and Oil Hegemony. The Marshall Plan, designed to rebuild postwar Europe, also served to solidify American control over European oil markets. A significant portion of Marshall Plan funds was used to purchase oil from American companies, further entrenching their dominance. This created a system of dependence on American oil and the dollar.

The Power of New York Banks. The postwar period saw the rise of powerful New York banks, closely tied to the oil industry. These banks, through their control of capital flows and their influence over government policy, played a key role in shaping the global economic order. The concentration of financial power in New York mirrored the concentration of oil power in the hands of a few major companies.

7. Challenging the Cartel: Mossadegh, Mattei, and the Limits of Independence

Oil played a decisive role in the collapse of the Soviet Union. Oil defined American foreign policy in much of the world during the Cold War. And oil defines American military actions since the end of the Cold War as never before.

Mossadegh's Nationalization of Iranian Oil. Mohammed Mossadegh, the Prime Minister of Iran, challenged the Anglo-American oil cartel by nationalizing the Anglo-Iranian Oil Company in 1951. This act of defiance, while ultimately unsuccessful, highlighted the growing desire of developing nations to control their own resources.

Mattei's Challenge to Big Oil. Enrico Mattei, the head of Italy's state-owned energy company ENI, also challenged the Anglo-American oil cartel by seeking independent oil supplies and offering more favorable terms to developing nations. His efforts to break the cartel's grip on the world oil market made him a target of powerful interests.

The Limits of Independence. The fates of Mossadegh and Mattei demonstrate the limits of independence in a world dominated by powerful economic and political forces. Both leaders were ultimately undermined by a combination of economic pressure, political maneuvering, and covert operations, highlighting the lengths to which the Anglo-American establishment would go to protect its interests.

8. The 1970s Oil Shocks: A Manufactured Crisis

The Allies were carried to victory on a flood of oil…With the commencement of the war, oil and its products began to rank as among the principal agents by which they (Allied forces-ed.) would conduct, and by which they could win it.

The Bilderberg Meeting. The book suggests that the 1973 oil crisis was not a spontaneous event, but a carefully orchestrated plan by powerful Anglo-American interests. A secret meeting of the Bilderberg Group in May 1973 discussed a scenario for a 400% increase in OPEC oil revenues, suggesting that the oil shock was not a surprise but a planned event.

The Yom Kippur War as a Pretext. The Yom Kippur War of October 1973 provided the perfect pretext for the oil embargo and the subsequent price increases. The war, according to the book, was manipulated by Henry Kissinger to create the conditions for the oil shock, which served to strengthen the dollar and the Anglo-American financial system.

The Petrodollar Recycling Scheme. The oil shock created a massive flow of petrodollars into the hands of OPEC nations. These funds were then "recycled" through Western banks, creating a new system of financial dependence and further consolidating the power of the Anglo-American financial establishment. This recycling process was a key element of the plan.

9. Monetarism and the Debt Crisis: A New Form of Control

The debt assumes varying forms–internal, reparations, Inter-allied, etc.–and is generally represented by bonds or notes.

Volcker's Monetary Shock. In 1979, Paul Volcker, head of the Federal Reserve, implemented a radical monetary policy that dramatically increased interest rates. This policy, while ostensibly aimed at curbing inflation, had the effect of plunging the world into a deep recession and creating a debt crisis for developing nations.

The Debt Trap. The combination of high interest rates and falling commodity prices created a debt trap for developing countries, making it impossible for them to repay their loans. This led to a new form of economic control, as the IMF imposed strict austerity measures on debtor nations in exchange for financial assistance.

A New Form of Imperialism. The debt crisis of the 1980s was not a natural phenomenon, but a carefully orchestrated strategy to maintain Anglo-American dominance. The IMF, acting as a tool of Western financial interests, imposed policies that undermined the economic sovereignty of developing nations and further entrenched their dependence on the dollar system.

10. The Post-Cold War World: A Shift in Geopolitical Focus

The central ambition of the realist school of American politicians is to win for America the position of leading nation in the world, and also of leader among the English-speaking nations.

The End of the Soviet Threat. With the collapse of the Soviet Union, the United States faced a new challenge: how to maintain its global dominance in the absence of a clear ideological enemy. The focus shifted from containing communism to managing economic competition and securing access to strategic resources.

Targeting Japan and Europe. The book argues that the U.S. establishment, fearing the rise of economic rivals, began to target Japan and Europe. The Plaza Accord, the manipulation of the Tokyo stock market, and the destabilization of the European Monetary System were all part of a strategy to maintain American hegemony.

The New Bogeyman. With the end of the Cold War, the U.S. needed a new enemy to justify its military spending and foreign interventions. The book suggests that the "War on Terror" and the concept of an "Axis of Evil" were created to fill this void, allowing the U.S. to maintain its global military presence and control over strategic resources.

11. The New World Order: Oil, Power, and the Future

Out of these troubled times a New World Order can emerge, under a United Nations that performs as envisioned by its founders.

The Gulf War as a Pretext. The 1991 Gulf War, according to the book, was not simply about liberating Kuwait, but about establishing a permanent U.S. military presence in the Middle East and securing control over the region's oil resources. The war also served to demonstrate the power of the U.S. military and its willingness to use force to protect its interests.

The Caspian Sea and the Balkans. The book highlights the strategic importance of the Caspian Sea region and the Balkans in the post-Cold War era. The U.S. sought to control pipeline routes and energy resources in these regions, using NATO and other instruments of power to achieve its goals. The bombing of Serbia was a key step in this process.

A New Era of Control. The book concludes that the Anglo-American establishment, through its control of oil, finance, and military power, has created a new form of global dominance. This dominance is maintained through a combination of economic manipulation, political maneuvering, and military intervention, all designed to ensure the continued hegemony of the dollar and the Anglo-American world order.

Last updated: January 14, 2025