(3) The Saudi Arabian Oil Industry in Relations with the United States

          Saudi Arabia is one of the most affluent countries in the Middle East due to their rapid growth of energy reourses; specifically, oil. Thirty-five percent of the worlds Petroleum, in 1991, came from the Organization of Petroleum Exporting Countries (OPEC), which is produced by Saudi Arabia and sold to other major powers around the world.  The Arabian-American Oil Company (ARAMCO), helped shape the relationship between the United States and Saudi Arabia through their trade of oil. Ownership of ARAMCO is divided among four major groups.  The Standard Oil of California owns about thirty percent of the company, Texaco also owns about thirty percent, Standard Oil of New York owns thirty percent, and Socony Mobil own about ten percent. With assistance from the U.S. government, in 1945, the Ras Tanura opened for business. Ras Tunara is a major oil-refinery and now contributes to the worlds economy. This strengthened the bond between the Middle East and the West in regards to trade and economic relations.  Saudi Arabia, mostly associated with the United States, wants to keep foreign ties strong with the West in order to keep these nations as a partner in oil drilling; however, the United Kingdom has been trying to gain bonds with Saudi Arabia.

   Throughout 1945 up until 2012, Saudi Arabia uses oil not only to fuel the economy but to also keep the United States on their side in any political battle or war. For example, when the West supported Israel in the Yom Kippur War (1973), Saudi Arabia raised the oil prices in order to send a message of discontent. This caused the United States to fight back, stating that Saudi Arabian defenses had to protect their oil fields because the United States threatened to take over and invade. These types of issues are a way for Saudi Arabia to insure that the United States will always be on their side in times of crisis. Most of these types of issues usually are ended by diplomatic means, or interference from diplomats in order to settle the affair.


   In return for the presence that the United States has within the growing country of Saudi Arabia, Saudi Arabia gains fifty percent of the total profit from oil and petroleum, boosting the economy of this independent nation.

Even though this occurs, the United States is trying to find ways through economics to set more stable ties with the country. In other means, the United States is trying to find a method in which they can be as useful to Saudi Arabia as their oil is to the U.S. in order to set an equilibrium of some sort. In a way, the United States is providing Saudi Arabia with military support in case of a unknown conflict between Saudi Arabia and another country. Also, Saudi Arabia has to endorse and support U.S. government securities financially. This ensures that Saudi Arabia can be modernized during its relations with the U.S., causing less cultural differences. The only way for Saudi Arabia to agree to supporting th U.S. government securities is through bribes and major persuasion.


    This unique method of keeping Saudi Arabia and the United States as allies is complex and hard to interpret. It is apparent that there is a bigger reason why Saudi Arabia needs the United States for support. Whether or not it is still the uses of the United States oil drilling services or if it is due to the fact that Saudi Arabia wants to have an ally in case of the outbreak of war, Saudi Arabia wants to keep good relations with the West. Oil is the main reason the Saudi Arabia and America are as close as they are, as well as the fact that Saudi Arabia obtains fifty percent of the profit, stimulating the economy drastically.

The Oil Kingdom: Part One