One of our favorite whipping boys is the Kingdom of Saudia Arabia.
There is no doubt about it, Saudia Arabia is probably not the best friend a nation could have, but the KSA is not the worst enemy either, and I would say far from it.
No doubt, its population is deeply conflicted between its deeply (and yes hardcore) held Islamic nature and the ideals that allow them to drive around in the Mercedes Benz automobiles, Nissan Patrols, and Land Rovers I would guess they do not want to give up their air conditioned flats & fancy automobiles.
Yes, those same citizens of the KSA then may take some of their wealth and send to those who would destroy the ideals that brought them air conditioning and fancy automobiles. However, think about this.Intestingly enough here is a story about another oil/energy power player:
Russia will soon cease to be a world power Telegraph
Russia's economy is overwhelmingly dependent on oil and natural gas and the country's prosperity depends on international commodity prices. At present, global oil prices are pushing upwards towards $100 a barrel and Russia's national coffers are overflowing.
Hence Mr Putin has the resources to rebuild his threadbare armed forces. Less than 10 years ago, Russian finances were so parlous that the Kremlin was forced to default on its debts in 1998. Today, Mr Putin has amassed some of the biggest foreign exchange reserves in the world. Moreover, Mr Putin knows that a dose of assertive nationalism goes down well with the electorate - and presidential and parliamentary polls are due in March next year.
The Telegraph published the article a little more than one year ago. How much has changed since then, oil went on a major bull rush and increased in price by 50% from what it was then, and is now 50% off from where it was then.
While, I don't have a source, I do recall hearing V. Putin saying Russia would use oil as a weapon. Looks like Russia is not the only nation using oil as a weapon. Does that sound conspiratorial? Yeah it does, do I normally poo-poo such conspiracies, yes I do.
Certainly, KSA for a long time was the only single nation able to affect oil prices on its own over the years (that ability is questionable right now). The article above notes how low oil prices were a major part of the USSR collapsing. I have to believe KSA was complicit in keeping oil prices low (while making token cuts from time to time).
Labels: Oil, Russia, Saudia Arabia