Oil has been a pivotal factor in shaping the global economy and political landscape throughout the 20th and 21st centuries. Yergin emphasizes that oil’s economic significance stems from its role as a primary energy source, driving industrialization and modern economies. The discovery and exploitation of oil fields, particularly in the Middle East, transformed previously underdeveloped regions into pivotal players in the global market. The wealth generated from oil exports allowed these nations to wield significant economic influence and leverage over oil-importing countries.

Politically, oil has been a critical factor in international relations and conflicts. Yergin analyzes the ways in which many nations have regarded control over oil resources as a strategic objective. For instance, during World War II, the Allies and Axis powers both recognized the strategic importance of oil, leading to battles over oil-rich territories. Post-war, the nationalization of oil industries in countries like Iran and Venezuela marked significant shifts in power from multinational oil companies to sovereign states. This transfer of control often led to political tension and conflict, as exemplified by the 1973 oil embargo, during which Middle Eastern oil producers used oil as a political weapon in the Yom Kippur War, drastically affecting global economies.