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Military Exercises: When Oil Pumps Up Defense Spending


“He who has oil has empire.” –Advisor of French Prime Minister Georges Clemenceau, December 1919 Oil has been called the lifeblood of the world economy.  Whoever controls more energy resources has – pardon the pun – more power. As worldwide oil consumption has grown exponentially during the past decades – from almost 60 million barrels…

“He who has oil has empire.” –Advisor of French Prime Minister Georges Clemenceau, December 1919

Oil has been called the lifeblood of the world economy.  Whoever controls more energy resources has – pardon the pun – more power.

As worldwide oil consumption has grown exponentially during the past decades – from almost 60 million barrels per day in 1980 to nearly 91 million barrels per day in 2013  – countries that export oil have experienced strong economic gains.  Oil profits are often linked to an increase in defense spending, with oil-exporting countries better able to acquire advanced weapons systems or build their internal security capabilities.


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