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Oil in saudi arabia for essay
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Crude oil is such an essential part of our modern lives that we can often take for granted that our supply of it will remain constant. Small, unstable countries often hold great amounts of this precious resource, along with the ability to cut our supply in a moment’s notice. Therefore, the discovery of oil in Saudi Arabia caused a dramatic increase in the revenue of the country. Saudi Arabia’s newfound wealth was exploited to serve the political and economic needs of an opportunistic Islamic monarchy, while the concerns and rights of its subjects were consistently cast to the wayside. Through a global trade network, Saudi Arabia found great prosperity at the cost of sacrificing its founding principles.
Stability of the Arabian Peninsula created the opportunity for the newly formed Saudi Arabia to encourage foreign investments, and thus the eventual oil industry. The Arabian Peninsula of the early 20th Century was characterized by diverse and militant Islamic groups (Federal Research Division, 2004, p. 10). Although oil was discovered by 1938, Saudi Arabia did not begin to reap its benefits and face its problems until after World War 2.
Oil has often been described as a ‘transforming force’, and this description is easy to apply to Saudi Arabia. Prior to World War 2, government yearly revenues barely reached half of a million dollars (Mansfield, A History of the Middle East, 1991, p. 281). By 1950, revenues were up to $56 million, and by 1956, they were at an unprecedented $200 million.
While oil revenue has been observed to bring positive effects to Saudi Arabia, large amounts of money have the intrinsic ability to corrupt leaders and produce negative effects. The extravagance of the Saudi Royal Family has drawn particular att...
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...tment of Economics - Boston College.
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Mansfield, P. (1991). A History of the Middle East. Victoria: Penguin Group.
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After the Second World War, the world was more interesting in oil than ever before. The conflict itself made the countries of the world realize that oil was a serious factor in the quest for power. From this point in history, oil was considered the driving force behind a successful economy and therefore attaining power. Therefore the quest for oil heightened during and after World War II. In the effort to acquire more oil, many countries began to seek out additional locations to drill and this drove the United States to the Middle East. In late 1943 a man named DeGolyer who was a geologist went on a mission to Saudi Arabia to survey the possibility for oil. His mission there concluded that “the oil in this region is the greatest single prize in all history”. With such a conclusion it is not surprising that the United States began extremely concerned with the oil concessions there.
Cobb, Paul. "Introduction." Ibn Munqidh, Usama. Book of Contemplation Islam and the Crusades. New York: Penguin Books, 2008. xv-xlii.
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Hause, S., & Maltby, W. (2001). The Ancient Near East: Mesopotamia, Egypt, Phoenicia and Israel. Essentials of Western Civilization (pp.7-15). California: Wadsworth.
Hourani, Albert. A History of the Arab Peoples. Cambridge, MA: Belknap of Harvard UP, 1991. Print.
Although the United Sates and Saudi Arabia present the United States and Saudi Arabia’s relationship as excellent, there are actually two nations who have bitter disagreements but who allies through oil. The only thing that has held this alliance together is the US dependence on Saudi oil. The United States has felt and still fells that it is a necessity to have bases present in the Middle East to protect oil, and silently to protect Israel. The relationship began in 1933 when Standard Oil of California signed an agreement with the Saudi government. In 1943 FDR affirmed that the defense of Saudi Arabia was a vital interest to the United States and moved troops into the region. Future presidents would emulate this declaration and mobilization of troops to Saudi Arabia. Again in 1945 Abd al Aziz, the Saudi king, and FDR would cement this alliance, on a US warship in the Suez Canal. Soon after, airfields were constructed at Dhahran and other spots over Saudi Arabia; beginning a long tradition of US military facilities in Saudi Arabia. Abd al Aziz was the first of his line of successors to meet with US presidents. The relationship was only strengthened with the onset on the Cold war, as the US used the bases in Saudi Arabia as potential air force launch sites to the USSR and constructed more military facilities. In 1941 Harry S. Truman made another assertion of Americas protection and alliance with Saudi Arabia to Abd Al Aziz. Truman stated that “support for Saudi Arabia’s territorial integrity and political independence was a primary objective of the United States.” (Countrystudies.com) Another stipulation of this pact was that the US established a permanent military training mission in the Saudi Arabia. That mission lasted until 1992. Soon after the pact between Truman and Aziz was agreed upon the US-Saudi relationship would endure its first major disagreement. On May 14th, 1948 Israel was declared an independent state in the former Arab dominated Palestine. Israel’s independence was backed the United States. Saudi Arabia refused to acknowledge the country of Israel and to engage in any relations with them. The Saudis concerns of the Israel-US relationship were reinforced in the 1970’s and 1980’s when the US sold arms to Israel, but refused to sell arms to Saudi Arabia. In some cases congressional leaders refused to sell arms to Saudi Arabia on the grounds that Saudi Arabia might use them against Israel.
Lewis, Bernard. The Middle East: A Brief History of the Last 2,000 Years. New York: Scribner,
The United States has had several scares throughout its history in terms of oil, most turn out to be over exaggerations of a small event. However, these scares highlight a massive issue with the U.S. and that issue is the U.S.’s dependence on foreign oil. Why does it matter that our oil should come from over seas? In a healthy economy this probably wouldn’t be as relevant, but the U.S.’s economy is not exactly healthy at the moment. There are 4 things that I would like to address: what the problem is, how it affects us, what some solutions are, and what solutions I feel are best.
An unstable economy in some Arab countries resulted in a failure to maintain order and democracy. Brownlee, Masoud and Reynolds (2013) claim that the lack of oil resources and currency wealth proved to be impediments i...
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 international realm.
...Arabia is a petrostate. Oil dominates the national economy, international exports, and the nation’s politics. It has greatly shaped what the kingdom is today. Having started out as somewhat of a tourist economy, the kingdom has become a world, monetary power. From their massive amounts of oil and extremely cheap production, the country has been able to gain large amounts of affluence and political power. With its large abundance of oil, the country has been able to profit immensely on sales and spur diplomatic outcomes to their benefit due to the great need of the resource. Without the discovery oil, Saudi Arabia would be of little importance in the modern world, having the Grand Mosque be the extent of its importance. But because of its discovery of oil, Saudi Arabia became of international importance, coming to be one of the greatest assets to world superpowers.
The discovery of oil in Middle East in the late nineteenth century added a critical dimension to the region as major outside state powers employed military force to protect their newly acquired interests in the Middle East. The United States efforts to secure the flow of oil have led to their ever-increasing involvement in the Middle East’s political affairs and ongoing power struggles. By the end of the twentieth century, safeguarding the flow of oil from the Persian Gulf had become one of the most important functions of the U.S. military. The close relationship between the United States and the Saudi royal family was formed in the final months of World War II, when U.S. leaders sought to ensure preferential access to Saudi’s petroleum. The U.S. link with Saudi Arabia and other countries in the region has demonstrated to be greatly beneficial to both parties, yet it has also led to ever deepening U.S. involvement in regional politics.
...n. "Twenty Years after the Embargo US Oil Import Dependence and How It Can Be Reduced." Energy Policy 22.6 (1994): 471-85. Print.