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Oil in saudi arabia for essay
Essay economic growth for saudi arabia
Oil in saudi arabia for essay
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Saudi Arabia is a primarily oil-based economy, with oil being the most important component of the nation’s rapid economic development since World War II. U.S. geologists discovered oil in the region in the 1930s, and since exports expanded most notably in the 1960s, production and rich revenues have been seemingly limitless. The amount of oil in Saudi Arabia’s reserves amounts to close to a quarter of the world’s entire oil resources, and today the country produces about 10,000 barrels a day. As a result, the valuable resource currently accounts for 90% of the country’s exports and contributes to 75% of government revenues annually. During the 1970s, following the Arab-Israeli war, Saudi Arabia’s economy was one of the fastest growing in the world due to a sharp increase in the value of petroleum.
Despite its thriving economy, Saudi Arabia today ranks 82nd in the world on the Index of Economic Freedom published annually by the Heritage Foundation and the Wall
Street Journal due to lack of business freedom, property rights, trade freedom, and most notably, freedom from corruption ("Saudi Arabia: Economy"). The nation also ranks 117th out of 150 in democracy (WorldAudit.org). Many scholars and scientists point to Saudi Arabia’s rich oil reserves as the main catalyst in the inhibition of freedom in the state, otherwise known as the “resource curse”. The resource curse is commonly defined as the relationship between a country’s excessive amount of natural resources and slow economic growth and developmental outcomes as opposed to other developing nations with less natural resources. In Saudi Arabia, it is oil that holds this debilitating effect, and like so many other countries plagued by the “resource curse”, the country has s...
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...conomy." Global Edge. Michigan State University, 1994. Web. 12 Nov. 2013.
"Saudi Arabia: Economic Freedom." 2013 Economic Index of Freedom. The Heritage Foundation, 2013. Web. 12 Nov. 2013.
"Saudi Arabia." Freedom House. Freedom House, 2013. Web. 12 Nov. 2013.
Shediac, Richard, Samer Bohsali, and Hatem Samman. "The Bedrock of Society: Understanding and Growing the MENA Region’s Middle Class." Booz&co. Booz & Co Inc, n.d. Web. 12 Nov. 2013.
"Taxes: Saudi Arabia." SAUDI ARABIA Tax Structure: Trade in Saudi Arabia,Trading in Saudi Arabia,Tenders in Saudi Arabia,B2B Business in Saudi Arabia,Saudi Arabian Business Sites. Matrix Net-on-line, 2000. Web. 11 Nov. 2013.
"Third Saudi State." The Kingdom - History of Saudi Arabia. N.p., 2002. Web. 12 Nov. 2013.
"World Report 2012: Saudi Arabia, Human Rights Watch." World Report 2012. Human Rights Watch, 2012. Web. 12 Nov. 2013.
Richard Manning Wrote the essay “The Oil We Eat – Following the Food Chain Back to Iraq” which was published in Harper’s Magazine February 2004 edition. In this essay, Manning discusses the evolution of agriculture and the consequences of it. Furthermore, Manning explores the relationship of fossil fuel, food calories and transfer of energy to illustrate earth’s prospective future. Through the use of charismatically presented factual arguments, visual powerful emotional narratives and the credibility of a few choice names, Manning creates an environment in his essay that allows flaws to escape otherwise unknown to majority reader.
" Middle East & North Africa Business Report, the Jordan 30 Mar.
The Ocean Ranger The Ocean Ranger was an offshore exploration oil drilling platform that sank in Canadian waters 315 kilometres southeast from St. John's Newfoundland, on the Grand Banks of Newfoundland on February 15, 1982, with 84 crewmembers onboard. The Ocean Ranger was the largest semi-submersible, offshore exploration, oil drilling platform of the day. Built in 1976 by Japan's Mitsubishi Heavy Industries, it operated off the coasts of Alaska, New Jersey, Ireland, and in November 1980 moved to the Grand Banks. Since it was so big, it was considered to have the ability to drill in areas too dangerous for other rigs.
Saudi Arabia and Qatar are both independent, Middle Eastern nations located on the Arabian Gulf peninsula. They share the same religion, same ruling style and same ruling religion. They are both Islamic monarchies where Wahhabism—a fundamentalist sect of Islam—is the primary faith among their people and the faith of their ruling families. Their economies follow nearly identical paths, as oil wealth is the primary sector of both of their Gross Domestic Products (GDPs) and largely controlled by the government. Both Saudi Arabia and Qatar are economically oil-driven Wahabist kingdoms; however, Qatar 's lack of reliance on Wahhabism coupled with its acceptance of its own ephemerality has
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.
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.
Crude oil is perhaps more easily found than water in the Kingdom of Saudi Arabia, which is home to nearly a quarter of the world's proven petroleum reserves (Klare 55). Naturally, this has caught the rapacious eye of the United States, which has, especially since the establishment in 1980 of the Carter Doctrine, increasingly defined the security of its extra-national oil supplies as a matter of vital national interest even during times of peace (33). At the end of World War II, envisioning the future need for oil, President Franklin D. Roosevelt met with Saudi King Abdel-Aziz Ibn Saud and offered the country and regime American protection, with a "vital but unspoken quid pro quo: in return for protecting the royal family against its enemies, American companies [would] be allowed unrivaled access to Saudi oil fields" (75).
They increase the spending on connectivity and human resources (Saudi Arabia Emergence Innovation Kingdom, 2014). Saudi Arabia is the largest economy in the Middle East and the richest Arab country. The economy of Saudi Arabia is entirely based on oil (Smetoolkit.org, 2014). Saudi Arabia is the 19th largest exporter and the 20th largest import market in the world (Saudiembassy.net, 2014). Exports now in the kingdom include all economic sectors.
Oil-Led Development: Social, Political, and Economic Consequences. CDDRL Working Paper 80. Robinson, J. A., Torvik, R. & Verdier, T. (2006). Political Foundations of the Resource Curse. Journal of Development Economics, 79, 447-468.
finding new ways to drill for oil and also refine it more efficiently to ensure that
Saudi Arabia, the leader of OPEC (Organization of Petroleum Exporting Companies), maintains a powerful position in negotiations with the U.S. and other countries. Its vast supply of oil directly effects per barrel pricing and is a unique bargaining tool in international politics. But Saudi Arabia is no ordinary country in today's world. Its borders are governed by a royal family of nearly 30,000 individuals, all of which share most of the wealth and almost all of the power. Its people, with foreign exceptions, are wholly Islamic and many practice the faith with a frightening sense of devotion. And despite the immense revenue generated by its oil reserves, part of its population still lives in absolute poverty. Although recently it has seen immense change, it is still a country fair behind the progressive world.
Over the past 200 years, mankind discovered the fossil fuels and they used this source to produce hug energy. This affects the environment in many negative ways and caused many issues worldwide such as urban air pollution and acid rain, oil spills and the high temperature of earth. Saudi Arabia has the biggest oil reserves in the world by 19.66% (the world factbook, 2011) and the second oil producer country in the world with roughly 10.121 million barrels a day – which account for 12% of the total world production of oil in 2010 (Fontinelle,2011). Moreover, the country relies heavily on oil industry. And the most successful companies in the country are thus whose work in oil industry such as ARAMCO Company. The reason behind this success is because most of these companies get financial support and attention from the Saudi government and sometimes the government owes these companies. Because of the massive reserve of oil and the high income that generated from oil, the country has less attention to seek for other sources of clean energy such as solar energy and wind energy which leads to the increase of air pollution in the country. However, oil is expected to last in the next 50 to 100 years (Hubbert, 1956). Furthermore, the International organizations have made many decisions to protect the environment and environmental resource such as Kyoto Protocol which decided to raise the use of solar energy to 50%of the total global energy use by 2020 (UNFCCC ,2005 ). Recently, these issues lead the Saudi government to realize problems, such as air pollutions, and start to invest in clean energy area but not as expected. These days many people in Saudi Arabia argue the uses of clean energy and replace with the fossil fuels. And they d...
...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.
However, you need to understand the situation in Saudi Arabia first. The way people drive in Saudi Arabia is insane. I mean, imagine that all cars are not following the traffic laws. You can go as fast as the car goes and you wouldn't be stopped at all. Leading to the deaths of nineteen people every day on the country’s roads.