Less than a month ago, the United States similarly lost its claim to superpower status when a barrel crude oil roared past $110 on the international market, gasoline prices crossed the $3.50 threshold at American pumps, and diesel fuel topped $4.00. As was true of the USSR following the dismantling of the Berlin Wall, the USA will no doubt continue to stumble on like the superpower it once was; but as the nation's economy continues to be eviscerated to pay for its daily oil fix, it, too, will be seen by increasing numbers of savvy observers as an ex-superpower-in-the-making.

That the fall of the Berlin Wall spelled the erasure of the Soviet Union's superpower status was obvious to international observers at the time. After all, the USSR visibly ceased to exercise dominion over an empire (and an associated military-industrial complex) encompassing nearly half of Europe and much of Central Asia. The relationship between rising oil prices and the obliteration of America's superpower status is, however, hardly as self-evident. So let's consider the connection.

Dry Hole Superpower

The fact is, America's wealth and power has long rested on the abundance of cheap petroleum. The United States was, for a long time, the world's leading producer of oil, supplying its own needs while generating a healthy surplus for export.

Oil was the basis for the rise of first giant multinational corporations in the U.S., notably John D. Rockefeller's Standard Oil Company (now reconstituted as Exxon Mobil, the world's wealthiest publicly-traded corporation). Abundant, exceedingly affordable petroleum was also responsible for the emergence of the American automotive and trucking industries, the flourishing of the domestic airline industry, the development of the petrochemical and plastics industries, the suburbanization of America, and the mechanization of its agriculture. Without cheap and abundant oil, the United States would never have experienced the historic economic expansion of the post-World War II era.

No less important was the role of abundant petroleum in fueling the global reach of U.S. military power. For all the talk of America's growing reliance on computers, advanced sensors, and stealth technology to prevail in warfare, it has been oil above all that gave the U.S. military its capacity to "project power" onto distant battlefields like Iraq and Afghanistan. Every Humvee, tank, helicopter, and jet fighter requires its daily ration of petroleum, without which America's technology-driven military would be forced to abandon the battlefield. No surprise, then, that the U.S. Department of Defense is the world's single biggest consumer of petroleum, using more of it every day than the entire nation of Sweden.

From the end of World War II through the height of the Cold War, the U.S. claim to superpower status rested on a vast sea of oil. As long as most of our oil came from domestic sources and the price remained reasonably low, the American economy thrived and the annual cost of deploying vast armies abroad was relatively manageable. But that sea has been shrinking since the 1950s. Domestic oil production reached a peak in 1970 and has been in decline ever since -- with a growing dependency on imported oil as the result. When it came to reliance on imports, the United States crossed the 50% threshold in 1998 and now has passed 65%.

A brief excerpt of the transcript is posted below. The entire interview can be read at the New American Media website.

During the Cold War the world order was fairly well defined. There's a new international energy order. Who are the players in this version of the great game?

In the Cold War era, the two main poles of power were the Western block, with the United States as the dominant power and the Soviet block. In this new world order, I believe it's bifurcated between energy surplus countries -- countries which have enough energy to supply their own needs and to export energy to others -- and energy deficit states, countries like the United States, China, Japan and European countries which don't have enough energy to meet their needs and are dependent on imports from other countries and therefore are beholden to them in various ways, economically and increasingly politically.

What about the group of countries who are neither militarily powerful like the United States is, and also deficit in energy? Do they just fall off the order?

Those countries are at the bottom of the barrel, literally speaking and if they're poor developing countries like in Africa and Latin America, they're going to suffer terribly, because among other things, agriculture is an oil dependent activity and the price of agricultural products has risen enormously and as a result, food prices have risen and we've seen terrible consequences of this, with rising food prices, food riots and people facing starvation. This is a product, as much as other things, of the rising price of energy.

Can you give some examples of how the energy consumers like the United States are wooing the energy producers?

Many of these countries in the developing world are themselves facing internal unrest or separatist movements. Nigeria is a good example of this. The government in Abuja, the capital, is the recipient of all the oil wealth, but the majority of its own citizens do not see the benefit of the oil wealth. They live in absolute poverty and often suffer the environmental consequences of oil production, and they're rising up in revolt - especially in the Niger Delta region in the south where the oil comes from. What they want from the United States or other suitors like China is weapons in return for oil. So we are pouring weapons in. The United States is becoming involved indirectly in a counter-insurgency war in the Niger Delta region. Similarly, China is deeply involved in Sudan's counterinsurgency in Darfur and in the southern Sudan region where there is another civil war on the way.

The RAND Corporation of Santa Monica, California, was set up immediately after World War II by the U.S. Army Air Corps (soon to become the U.S. Air Force). The Air Force generals who had the idea were trying to perpetuate the wartime relationship that had developed between the scientific and intellectual communities and the American military, as exemplified by the Manhattan Project to develop and build the atomic bomb.

Soon enough, however, RAND became a key institutional building block of the Cold War American empire. As the premier think tank for the U.S.'s role as hegemon of the Western world, RAND was instrumental in giving that empire the militaristic cast it retains to this day and in hugely enlarging official demands for atomic bombs, nuclear submarines, intercontinental ballistic missiles, and long-range bombers. Without RAND, our military-industrial complex, as well as our democracy, would look quite different.

Alex Abella, the author of Soldiers of Reason, is a Cuban-American living in Los Angeles who has written several well-received action and adventure novels set in Cuba and a less successful nonfiction account of attempted Nazi sabotage within the United States during World War II. The publisher of his latest book claims that it is "the first history of the shadowy think tank that reshaped the modern world." Such a history is long overdue. Unfortunately, this book does not exhaust the demand. We still need a less hagiographic, more critical, more penetrating analysis of RAND's peculiar contributions to the modern world.

Abella has nonetheless made a valiant, often revealing and original effort to uncover RAND's internal struggles -- not least of which involved the decision of analyst Daniel Ellsberg, in 1971, to leak the Department of Defense's top secret history of the Vietnam War, known as The Pentagon Papers to Congress and the press. But Abella's book is profoundly schizophrenic. On the one hand, the author is breathlessly captivated by RAND's fast-talking economists, mathematicians, and thinkers-about-the-unthinkable; on the other hand, he agrees with Yale historian John Lewis Gaddis's assessment in his book, The Cold War: A New History, that, in promoting the interests of the Air Force, RAND concocted an "unnecessary Cold War" that gave the dying Soviet empire an extra 30 years of life.

We need a study that really lives up to Abella's subtitle and takes a more jaundiced view of RAND's geniuses, Nobel prize winners, egghead gourmands and wine connoisseurs, Laurel Canyon swimming pool parties, and self-professed saviors of the Western world. It is likely that, after the American empire has gone the way of all previous empires, the RAND Corporation will be more accurately seen as a handmaiden of the government that was always super-cautious about speaking truth to power. Meanwhile, Soldiers of Reason is a serviceable, if often overwrought, guide to how strategy has been formulated in the post-World War II American empire.

Among the many reasons given for the recent surge in gas prices is China's soaring demand for petroleum. Because the Chinese are running around the world buying up every available barrel of oil, the argument goes, we Americans have to pay that much more to outbid them for the leftover pools of crude. And the fact that the Chinese yuan has been growing stronger while the American dollar is shrinking in value has only exacerbated the problem.

Unquestionably, there's some truth to this. China's consumption of oil rose from about 4.2 million barrels a day in 1997 to 7.8 million barrels in 2007, an increase of 86%, the U.S. Department of Energy reported earlier this year. More to the point, the percentage of this oil that had to be imported grew even more. In 1997, China supplied all but 1 million barrels of the oil it consumed each day from domestic fields; by 2007, the shortfall between domestic output and consumption had jumped to 4 million barrels, all of which had to be imported.

In fact, he has no idea just how deep the Pentagon rabbit hole goes or how far down it his family already is.

Rick believes that, despite its long reach, the military-industrial complex is a discrete entity far removed from his everyday life. Now, if this were 1961, when outgoing President Dwight D. Eisenhower warned the country about the "unwarranted influence" of the "military-industrial complex" and the "large arms industry" already firmly entrenched in the United States, Rick might be right. After all, he doesn't work for one of the Pentagon's corporate partners, like arms maker Lockheed Martin. He isn't in the Army Reserve. He's never attended a performance of the Marine Corps band (not to mention the Army's, Navy's, or Air Force's music groups). But today's geared-up, high-tech Complex is nothing like the olive-drab outfit of Eisenhower's day: It reaches deeper into American lives and the American psyche than Eisenhower could ever have imagined. The truth is that, at every turn, in countless, not-so-visible ways Rick's life is wrapped up with the military.

So wake up with Rick and sample a single spring morning as the alarm on his Sony (Department of Defense contractor) clock interrupts his final dream of the night. Donna is already up and dressed in fitness apparel by Danskin (a Pentagon supplier that received more than $780,000 in DoD dollars in 2004 and another $456,000 in 2005) and Hanes Her Way (made by defense contractor and cake seller Sara Lee Corporation, which took in more than $68 million from the DoD in 2006). Committed to a healthy lifestyle, she's wearing sneakers from (DoD contractor) New Balance and briskly jogging on a treadmill made by (DoD contractor) True Fitness Technology.

Rick drags himself to the bathroom (fixtures by Pentagon contractor Kohler, purchased at defense contractor Home Depot). There, he squeezes the Charmin, brushes with Crest toothpaste, washes his face with Noxzema; then, hopping into the shower, he lathers up with Zest and chooses Donna's Herbal Essences over Head & Shoulders -- "What the hell," he mutters, "I deserve an organic experience." (The manufacturer of each of these products, Procter & Gamble, is among the top 100 defense contractors and raked in a cool $362,461,808 from the Pentagon in 2006.)

In go his (DoD supplier) Bausch and Lomb contact lenses and down goes a Zantac (from DoD contractor GlaxoSmithKline) for his ulcer. Heading back to the bedroom, he finds Donna finished with her workout and making the bed -- with the TV news on -- and lends her a hand. (Their headboard was purchased from Thomasville Furniture, the mattress from Sears, the pillows were made by Harris Pillow Supply, all Pentagon contractors.) They exchange grim glances as, on their Samsung set (another DoD contractor) the Today Show chronicles the latest in chaos in Iraq. "Thank god we never supported this war," Rick says, thinking of the antiwar rally Donna and he attended even before the invasion was launched. NBC, which produces the Today Show, is owned by General Electric, the 14th-largest defense contractor in the United States, to the tune of $2.3 billion from the DoD in 2006, and has worked on such weapons systems as the UH-60 Blackhawk helicopters and F/A-18 Hornet multimission fighter/attack aircraft, both in use in Iraq.