US-INSPIRED political machinations involving Saudi Arabia have driven down the price of a barrel of Brent crude to a mere $30 and have brought the UK oil sector to the brink of oblivion.
Opec, the cartel of oil producers led by the oil-rich Kingdom of Saudi Arabia has been labelled the villain of the piece for its failure to increase oil prices by reducing oil output in the face of a global glut of oil stocks. Well, there may be a smidgeon of truth in these claims, but over most of the past 45 years Opec has been pilloried by the West for taking actions that increased oil prices.
They really can’t win. And in any event it is all a red herring. If there is a genuine cartel that can control the price of oil it consists not of Opec but of the US and Saudi Arabia alliance. US production and stockpiling of oil has never been higher. By all accounts Saudi Arabia is on the point of selling shares in its national oil company Saudi Aramco and that can only be to strengthen even further its political and economic ties with the US.
Has world history seen stranger bedfellows? Would the US have any interest in having a relationship with the Saudis if that kingdom had no oil? No answers required please, as this really is the world’s dumbest rhetorical question. Self-interest is at the heart of the relationship and when a definitive history of the fallout from it is written it will not be on the list of Barack Obama’s favourite bedtime reads. Arguably, the US/Saudi Arabia cartel has forced down the oil price to put economic pressure on their common adversary Russia.
Clearly there are other external factors that have impacted on oil price such as the downturn in the economies of China and Europe but primarily US and Saudi over-production relative to demand is the root cause of the oil crisis.
This is an excerpt from an article published yesterday on www.energypost.eu.
Experts: Westminster has abandoned North Sea - Holyrood should take over oil
The National View: It's vital that Holyrood takes control of North Sea oil and gas
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here