Iranian democracy and American energy

[ JUNE 29, 2009 - OKLAHOMA CITY, OK ] - The recent elections in Iran have certainly commanded the headlines of the world’s media outlets, and it’s hard not to notice the growing cries among Americans in support of free and fair elections abroad. We might never know if the elections in Iran were legitimate, a product of fraud or otherwise shady devices, but it is innately American to question, re-question and remain suspicious of allegedly unfair election practices. The American media and public are fixated on Iran’s treatment of its dissenters and the constant violence filling the streets, and with good reason. We simply can’t comprehend much about elections that don’t smell right past a routine recount or a few hanging chads.

Something the media hasn’t really touched on, however, is the relationship of this election to the global energy crunch and ultimately the U.S. The connection isn’t exactly as clear as a newspaper headline, either.

The national revenue of Iran is derived almost solely from the sale of oil, and it ranks fourth on the list of the world’s top exporters of the fuel. Iran’s ruling class, like other similarly situated oil-producing nations (Venezuela comes to mind), has learned over time how to utilize a large portion of its oil revenues to maintain clout among a majority of its citizens. For example, Iran currently uses oil revenues to subsidize basic necessities such as bread and milk. These subsidies are expensive, but their widespread use and emergence as the norm gives the nation’s poor and rural citizens good cause to maintain the status quo in the democratically elected sector of government. Thus, an Ahmadinejad victory in this month’s election wasn’t exactly unlikely, particularly since he has long billed himself as a populist in tune with the nation’s poor (a campaign line ripped from the book of Hugo Chavez himself).

In this way, the price of oil has a direct impact on the Iranian government’s ability to resist reform. As long as oil revenues are up, Iran can continue to fund its social-net policies. Is it really any surprise, then, that the recent political and social unrest in Iran is coming shortly after the peak of a global recession and at a time oil prices hit bottom? The jury might still be out on that correlation, but real reform or change of Iran’s governmental structure is probably unlikely for as long as the country creates 80 percent of its revenue through oil proceeds.

The question, then, is how does this all relate to American or global energy interests? The answer lies in America’s role as a leader in the global push towards alternative energy discovery and enhanced production and use of our domestic blessings. If oil revenue is a foundation of modern Iranian policies, then decreased Western reliance on oil could be the earthquake to crack it. The U.S. is uniquely equipped with the ingenuity, industry and leadership to provide the push for real energy innovation in the coming years. The notion of leading international efforts for a common good is surely as American as the preference for democracy itself.

The point here is not geared towards support for reform in Iran, but rather to take a closer look at the impact of the price of oil on the U.S. and its international counterparts. We now live in a world where the value of alternative energies and greater use of domestic resources is no longer just good rhetoric. These homegrown resources and innovations are an integral part of our national energy independence and could prove to be an increasingly powerful tool in America’s diplomatic arsenal.

Jim Roth, a former Oklahoma corporation commissioner, is an attorney with Phillips Murrah P.C. in Oklahoma City, where his practice focuses on clean, green energy for Oklahoma.