Fossil Fuels as Strategic Resources
Oil and gas are not just energy commodities. They are strategic levers. Their production, transport, and pricing shape international alliances, military planning, and diplomatic leverage.
Unlike solar panels or wind turbines, fossil fuels:
- Are physically stockpiled in strategic reserves
- Are traded through global spot and futures markets
- Are secured by military and naval deployments
- Are central to national energy security doctrines
The ability to produce, refine, and export fossil fuels underpins economic sovereignty. Countries without control over energy inputs remain dependent and geopolitically vulnerable.
Strategic Petroleum Reserves (SPRs) and Emergency Readiness
The United States Strategic Petroleum Reserve (SPR) was established in 1975 after the OPEC oil embargo exposed the fragility of import dependence.
As of April 2025:
- The SPR contains 388 million barrels of crude oil
- Releases are used for market stabilization, not just emergencies
- Europe maintains over 200 million barrels of combined reserves across member states
- China has built up a strategic reserve of over 900 million barrels, though its release policy is opaque
No analogous stockpiling exists for wind, solar, or battery components. Fossil fuels provide dispatchable energy on command. Renewables do not.
Oil and Gas as Foreign Policy Instruments
- Controls roughly 38% of global oil supply
- Sets coordinated production quotas to influence prices
- Saudi Arabia, UAE, and Russia are the principal swing producers
- Russia’s cooperation with OPEC+ has allowed it to manipulate global prices while funding military operations in Ukraine
- Transformed the United States from net importer to net exporter of crude and natural gas
- Reduced vulnerability to Middle Eastern instability
- Enabled diplomatic leverage through LNG exports to Europe and Asia
- Strengthened the U.S. dollar by reinforcing petro-dollar demand through global oil trade
Russia-Europe gas dependency:
- Prior to 2022, 40% of EU gas was supplied by Russia
- Nord Stream pipelines (now defunct) were designed to lock in long-term dependence
- After the invasion of Ukraine, Europe scrambled for LNG, triggering global price spikes
- Germany reopened coal plants and rationed gas in 2023–2024 to stabilize supply
Fossil fuels determine which nations are price takers and which are price setters.
Fossil Fuels and Military Logistics
Modern militaries cannot operate without fossil fuels.
As of 2025:
- NATO logistics chains are built around diesel and jet fuel infrastructure
- The U.S. Department of Defense is the world’s largest single petroleum consumer
- Jet fuel (JP-8) powers all tactical aircraft, drones, and large-scale transport operations
- Naval fleets run on heavy fuel oil and marine diesel
- Electric alternatives remain unviable due to low energy density and recharge times
Green military pilot projects exist (e.g., solar-powered UAVs), but they are symbolic and non-operational at scale. War-fighting capability depends on oil.
Energy Leverage in U.S. Diplomacy
LNG exports have become a central element of U.S. foreign policy.
From 2016 to 2025:
- U.S. LNG exports grew from near-zero to over 13 billion cubic feet per day
- Europe became the top customer after Russian supply contraction
- U.S. energy diplomacy has secured long-term contracts with Poland, Germany, Japan, and South Korea
- LNG terminal construction is expanding in Texas, Louisiana, and the Gulf Coast
By offering energy security to allies, the U.S. reinforces its geopolitical alliances while competing with authoritarian producers like Russia and Iran.
Global Chokepoints and Maritime Security
Control over fossil fuel transport routes remains a critical concern:
- Strait of Hormuz: 20% of global oil passes through this narrow channel. Iran has repeatedly threatened closure.
- Suez Canal: Disruptions delay both crude and LNG shipments, as occurred in 2021 and 2024
- Malacca Strait: Southeast Asia’s lifeline for LNG and petroleum imports from the Middle East
- Panama Canal: Essential for U.S. Gulf-to-Pacific LNG and refined product exports
Naval power and fossil fuel security are directly linked. The U.S. Fifth Fleet, Royal Navy, and Indian Navy all maintain forward presence in energy-critical waterways.
The Green Delusion: Dependency on China
The push for green energy creates new dependencies, especially on China:
- China controls over 85% of global rare earth processing
- 78% of global solar panel exports come from Chinese firms
- Over 70% of lithium-ion battery manufacturing is China-based
- EV supply chains are vertically integrated by Chinese conglomerates (e.g., CATL, BYD)
Replacing one form of energy dependency (oil from OPEC) with another (minerals from China) does not enhance sovereignty, it just shifts the point of control.
April 2025 Strategic Landscape
- U.S. Congress passed new LNG acceleration permits to counter Chinese energy influence
- The EU Energy Security Strategy (2025 update) reaffirmed natural gas and nuclear as essential to grid stability
- Japan reopened multiple LNG terminals damaged by the 2021 earthquake, reinforcing fossil fuel as its base load
- Global oil prices have declined significantly and stabilized from previous levels.
- Brent crude futures are trading around $65.42 per barrel, and U.S. West Texas Intermediate (WTI) is at approximately $61.65 per barrel.
- This downturn is attributed to several factors:
- Economic concerns: Growing apprehensions about global economic stability and reduced demand, particularly due to escalating trade tensions between the United States and China, have dampened the demand outlook.
- OPEC+ production adjustments: While OPEC+ had previously implemented deep output cuts to stabilize the market, recent reports indicate that the group is considering accelerating oil output increases, which could further impact prices.
- The International Energy Forum warned of future volatility due to underinvestment in upstream fossil fuel exploration