Well, I’m glad you’re impressed. That was my intent.
The oil market is a single market. It means little where we get our oil. If any major oil producing nation were to interupt production it would drive up worldwide oil prices for all worldwide buyers. Best I can remember Japan gets more than 50% of it’s oil from the ME, and Eurpoe gets a significant amount from them. We’re 8/9/10%ish from the ME I think. Still, that is significant enough that an interuption of ME oil would drive US gasoline and oil prices through the roof. (As Japan, China, Europe would be also competing for oil purchases in the worldwide market)
The point is simply this: The oil industry is intertwined worldwide. What happens in South America, the Middle East or Africa is pertinent to all buyers, no matter where they get their oil.
So I don’t know what nation you’re suggesting is “the right country.” AFAIK, Saudia Arabia is sitting on something like 25% of all the known oil reserves in the world.
If any one nation in the world has the capacity to influence worldwide oil supply it is unquestionably Saudia Arabia.
Lastly, the comment, “Something’s worth what it’s worth. Oil prices are up because that’s what oil costs. Why are Arabs not allowed to sell their property for a decent price?” got my attention.
OPEC is a price fixing cartel. That is anathema to the American mindset. To the extent oil’s “worth” is artificially elevated by price fixing (which is exactly what OPEC does) (Read: colluding to reduce output and maintain stable pricing) it engenders resentment from a nation hooked on Suburbans, Expeditions and Escalades. If BP, Royal Dutch Shell, ExxonMobil, Conoco, et al met regularly met to discuss output they’d all be indicted.
Still, you have a point and if that is indeed his complete thoughts that seems hopelessly foolish, from a practical, political and operational POV.
Still, it remains a fact that the only nation on earth, (if you must choose a single nation) that has both the capacity and leadership to influence worldwide oil supply it is Saudia Arabia. (including American gas prices)
He’s also not suggesting that hasn’t been done in a milder fashion. Saudia Arabia has a long, close relationship with the west, especially the US. You don’t think that politicians haven’t in [sometimes less than] subtle ways reminded SA that it in their best interest to keep US oil prices low?
Maybe The Donald is all wet, but it’s not as far fetched as it would seem. Not is it conceptually out of the question that SA use it’s own capacity and influence to increase—at least temporarily–output. But threatening SA is about the last thing this world needs right now.
