The saudis no longer view oil as an effective

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Unformatted text preview: er controls over swaps and derivatives. Financial reform in the United States is already heading in this direction. The United States should also use international institutions to promote transparency and better governance in energy-producing countries that have been weakened by lower oil prices-such as Nigeria and many sub-Saharan African states. Transparency in markets must also be encouraged in China, as a lack of basic data about the oil market there-are China's oil imports put into storage or consumed?-places undue pressure on world prices. The opportunities presented by lower oil prices should not detract from the important goals of reducing global greenhouse gas emissions, enhancing the United States' energy security, and building a new generation of energy-efficient nonhydrocarbon fuel sources. But they should not be overlooked; it would be dangerous to ignore oil and "old energy." However laudable it might be to pursue clean energy , energy efficiency, and alternatives to oil and coal, oil will continue to be a critical factor in the world's economic stability and security. Defanging those that use oil as a weapon, prolonging moderate prices, and anticipating supply disruptions require an activist and global approach to energy, not a parochial and national one. It is time for Obama to publicly recognize that bringing energy independence to the United States is an impossible task and that pursuing more modest goals is a better way to ensure the country's energy security.0 257 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Good – AT: Saudi Political Weapon 258 Oil DDW 2012 1 Saudi Arabia won’t use oil as a political weapon and actively opposes those uses Pierce, Ph.D. candidate at the School of Public Affairs, University of Colorado, 12 Jonathan J. Pierce, Ph.D. candidate at the School of Public Affairs, University of Colorado, Denver, 1-5-12, [“Oil and the House of Saud: Analysis of Saudi Arabian Oil Policy,” Digest of Middle East Studies Volume 21, Issue 1, pages 89–107, Spring 2012,] E. Liu The Saudis have used their excess capacity to threaten or force other OPEC members to comply with their demands.The Saudis tend to utilize OPEC when it best meets their needs, as when it yields to their pressure, but also tend to act unilaterally or in concert with non-OPEC countries,such as the United States.This means the Saudis do not necessarily deem OPEC as an institution to wield their power within as they once did in the 1970s and 1980s, but as an asset to achieve their policy goals. The Saudis no longer view oil as an effective political weapon to force consumer countries, particularly the United States, to yield to other political demands. This is because the Saudis view their role within the global oil market as more important for long-term economic and political stability over their role in OPEC or within regional political alliances. For example, the Saudis made a direct political move in oil production in April 2002. Iraq ha...
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This note was uploaded on 01/30/2013 for the course ECON 101 taught by Professor Burke during the Spring '13 term at Southern Arkansas University.

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