US foreign policy ( chapter 3) Essay Example | Topics and Well Written Essays - 2250 words

US foreign policy ( chapter 3) - Essay Example During the Civil War, oil use was seen in the United States (Committee of Foreign Relations, 1975). Being the largest user and producer of oil, it also supplied oil to the Allied Forces during the First World War. The use of oil in the US industries was prominent in the post-war era and this prompted the US to fear oil supply depletion. The US was also concerned about oil supply being largely controlled by foreign interests like British Petroleum and Royal Dutch Shell (Committee of Foreign Relations, 1975). Moreover, the US also feared British control of numerous oil fields outside the United States. â€Å"All the known oil fields, all the likely of probable fields outside of the United States itself are in British hands or under British management of control, or financed by British capital† (Terzakian, 2006, p. 72). This prompted the US to be more restrictive of its oil exports and to consider other sources of oil. After the First World War, the US Senate asked the President to report on the restrictions being imposed on Americans exploring oil in foreign nations (Committee of Foreign Relations, 1975). Reports on how Americans were excluded from the exploration of foreign oil fields were revealed by a State Department report. Those which were under British control were especially active in excluding American oil explorers. Congress was prompted to pass the Mineral Leasing Act of 1920 and this act set forth that oil and minerals outside the US can be explored by US nationals (Randall, 2005, p. 19). The Congress also implemented what is now known as the Principle of Reciprocity wherein oil and other minerals in the US lands could be used for exploitation by domestic foreign-owned corporations, but if the same privileges were not given to US nationals, these corporations would not be able to own stock or control