Do Oil Exports Fuel Defense Spending?

Clayton K. S. Chun | Strategic Studies Institute | 2010-02-17

"Many national security analysts have viewed oilexporting countries with some trepidation. Although these exporting nations supply a vital energy source to the United States and her allies, it comes at a price. A great wealth transfer occurs in this process from oil importers to exporters. In some cases, oil importers face economic woes if energy prices rise sharply. Additionally, some critics might argue that oil exporters now have the financial wherewithal to acquire a military capability that could threaten neighbors or create intra-regional instability with global implications. If oil revenues are the major factor that determines defense spending levels, then an oilexporting nation's neighbors or other powers need to become more vigilant during times of great energy demand or price increases. Conversely, decreases in oil revenue might presage a reduction in defense spending and a corresponding lessening of tensions. Could oil prices be a significant factor in determining defense spending?"