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Business and Politics

The US politics has been greatly fueled by the economy and the business powers of this nation.
One of the biggest influences on this countries politics is the energy sector that is dominated by
the oil industry. The oil industry has great influence on the policy making in this country.
The reason being the revenues collected from this industry make it one of the major stake
holders in the US economy. On the other hand the nation has a need for oil, which they mostly
obtain from imports of crude oil. By 2008 two thirds of the oil consumed in the US was
imported, with 40% of the total energy used being from burnt oil. This means that the country is
heavily dependent on oil (U.S department of energy, 2009).
Oil and politics influence each other in this country. The need for oil and the urge to
secure more oil sources drives this nation to forge diplomatic relations with countries that may
not necessarily reflect its interests. Some of its biggest suppliers of oil are Canada, Saudi Arabia,
Venezuela, Nigeria and Mexico, today they also control Iraqs oil reserves. They have established
diplomatic relations with countries like Iraq, Saudi Arabia and the Soviet Union (U.S department
of energy, 2009).
The need for their political government to control oil sources can be seen in their
handling of the invasion of Kuwait by Iraq. When Saddam Hussein invaded Kuwait to control its
oil reserves, the U.N and the American Troops were called in to drive out Iraqi troops (EIA,
2010). The recent invasion of Iraq that led to the Capture of Saddam Hussein saw the
reconstruction and protection of the oil lines and reserves as the priority concern of the US
troops. For a countries politicians to be driven to wage war on another country, and to seek
measures to preserve the oil riches goes to show how much oil is important to this country. It is
without saying that this country uses its supper power influence to control oil market.
Furthermore oil prices are determined in terms of the dollar, these further shows the advantage

Business and Politics

the country enjoys when it comes to oil. Therefore the political relations this country has with
these countries will always affect how oil business is conducted.
The dependence on oil and its products has given rise to the creation of several energy
bills and policies. It began with the oil crisis n 1973 that saw the creation of the federal
department of energy. This was created to develop energy conservation steps (U.S department of
energy, 2009). They introduced a national maximum speed limit and downsized automobile
categories. The huge cost realized from consumption of oil in the US has called for the
introduction of energy conservation measures. This has caused the government to put pressure on
manufacturers and industries to conserve energy and the introduction of alternative energy
sources.
It is also without saying the huge revenues realized from oil funds many government
projects. Oil issues and prices have also been the focus during campaign season. The energy
issue was a major campaign topic in 2008, as Americans faced huge gas prices. It is without
saying that oil remains a major topic in the political scene. As long as the country cannot produce
its own oil, it will continue to depend on others for the same, driving their political agenda
towards oil, as they satisfy their huge need for the product (EIA, 2010).
Since oil remains the major source of energy to the nation, it also affects the countries
production and industries. This means that fluctuation in its price will lead to an effect on the
cost of living, with oil affecting everyone then the politicians are under pressure from their
public to regulate the oil prices. The country will continue to use its political power to influence
oil producing countries politics, in order they satisfy their need for the product. Being a great
consumer, at 25% of the world oil then it is without saying that the US cannot rule out the use of
politics to secure its interests.

Business and Politics


Work Cited
U.S department of energy, (2009). Energy sources, retrieved 26th June, 2010 from
http://www.energy.gov/
EIA, (2010). Energy consumption and use. EIA, retrieved 26th June, 2010 from
http://www.eia.doe.gov/