Oil and Saudi Arabia Essay

4106 Words 17 Pages
Exposing the Saudi Arabian Royal Family, U.S. foreign policy, and the poverty currently occurring within Saudi Arabia Preface

The current world dependence on oil leaves much to be said about the impact of Saudi Arabia and the Middle East on foreign policy and international politics. Presently the world's largest consumer of oil, the U.S. depends on Saudi Arabia and much of the Middle East for the energy to run its businesses, its homes, and most importantly, its automobiles. In the past few months U.S. consumers have felt the pressures of increasing gasoline prices as they struggle to commute and live their daily lives. This leaves the U.S. with important decisions to be made on behalf of its citizens and its position in the
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Its main focus is to explain the incentives of each group involved in the Saudi Arabian situation, and heavily criticize groups acting in their own interest rather than that of Saudi Arabia. Finally, it will make a recommendation for all groups to promote democracy and a stronger economy within Saudi Arabia. Hopefully, it will serve as an enlightening tool for an incredibly important, yet strangely unique and complicated dilemma.

Oil The current growth in the world economy only partially explains the high per barrel amount being paid for oil in today?s markets. Since January of 2004 oil prices have risen from under $35 per barrel to a record high of $42.33 on the New York Mercantile Exchange (See Appendix A). At first glance it could be assumed this increase in price is due to a lack of supply that could meet the current demand. However, a recent article in the The Economist explains, ?Three related things, or so it seems: surging demand; petroleum-distribution bottlenecks, especially in the United States; and speculation aimed at pricing in the risk of some big future setback in supply.? Surging demand can be clarified by the growth in the world economy, especially in the United States where the market is on the upswing and the summer driving season has arrived. The distribution bottlenecks should eventually clear and will probably drop prices below $40 per barrel. But the most important factor to consider is

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