| For over two hundred years, while states have depended on energy for their economic development, a relationship between energy and international affairs has developed. In the 20th century, the age of oil, many scientists have warned us of the peak oil era and its negative impacts on interstate relationships. This research investigates the contrasting arguments in economic incentives and interstate relations literatures whether economics leads to (1) conflicts, (2) cooperation or (3) there is no relation between them. Using cross-sectional time-series data of 80 dyads in offshore disputes around the globe from 1960 to 2004, I test the effects of crude oil, the most rewarding commodity, on the escalation of conflicts between littoral states. The analysis provides results that contrast with the common perception that oil inflicts conflicts. Instead, it shows that oil has no effects on the level of conflict. Thus, economic considerations, a tool of influence, may not be taken into account when leaders face the decision to engage in conflict. |
