New Geopolitics Of Oil In The Middle East, And Its Implications For China’s Oil Diplomacy

This research thesis examines the significance of the new energy landscape, and the implications of Arab Uprisings for oil and global oil market. Not only are oil prices cyclical, but the geopolitics of oil is linked inexorably to the same cycle. The Middle East and its sub-region, Persian Gulf region, have long been amongst the most volatileregions of the world and major center of world affairs; strategically, economically, politically, culturally, and religiously sensitive areas. The location of the Persian Gulf has given the region a significant economic and strategic position. Both the Middle East and Persian Gulf region remain areas of unresolved and dangerous conflict involving the external powers, arms proliferation and ethnic and religious hatreds that go back centuries. The Persian Gulf and its coastal areas are the world’s largest single source of crude oiland related industries dominate the region. Due to their huge oil and gas resources, the regional statesplay a significant role in global economy and these natural wealth have made the region very importantfrom the geostrategic point of view. A revolution in energy production is under way in the United States, one that could lead to a new turning point in energy dynamics globally. In a reversal of the events a half century ago, U.S. energy demand growth isflattening, and after decades of lower output, U.S. production is soaring, though the United States remains a net oil importer.All these major elements have represented a serious threat to China regard to the increasing of its economic interaction, and its resource diplomacy with Middle East countries, where these resources abound. This analysis thus gives interesting insights not only into the dynamics of China’s oil diplomacy in Middle East, but also into Chinese oil diplomacy statecraft in general and how constraints that surface at the implementation level feedback into foreign policy formulation.