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Let's Know Things

US-Saudi Relations

Let's Know Things

Colin Wright

News Commentary, News

4.8593 Ratings

🗓️ 8 November 2022

⏱️ 23 minutes

🧾️ Download transcript

Summary

This week we talk about MBS, Biden, and OPEC Plus.

We also discuss the clean energy transition, fistbumps, and kowtowing.

Show notes / transcript: https://letsknowthings.com/episode337



This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit letsknowthings.substack.com/subscribe

Transcript

Click on a timestamp to play from that location

0:00.0

The United States and Saudi Arabia established full diplomatic relations in the mid-20th century. And from that point forward,

0:22.1

ties have been tight, largely because of what each side gets from an interwoven economic,

0:27.1

military, and diplomatic arrangement. The U.S. as the world's largest economy, wielding the world's

0:33.6

largest military, needs a lot of oil. And the Saudis have just gobs of that. They are the second

0:40.1

largest oil producer with the second largest oil reserves in the world, and they are the world's

0:45.2

largest oil exporter. That export capacity enabled in part by how cheap it is for them to produce

0:51.5

and ship oil compared to other producers, which generally have

0:55.1

more difficult to access oil deposits, which are thus more expensive to get to and pump, and which

1:00.8

in some cases are only able to pump oil that requires a lot more costly processing to make it

1:06.8

suitable for the global market. The Saudis, in contrast, have easy to get, easy to process and

1:13.1

sell oil, but they're located in a highly unstable part of the world where there are generally

1:18.2

several wars ongoing at any given moment, the consequence of invasions or turmoil caused by

1:24.5

internal or external forces, and they deal with near-constant threats of regime

1:29.5

change while also sharing a border with their ideological, governmental, and military-arch rival,

1:35.5

Iran. The Saudi stockpiles of cheap and easy oil then makes them a target, and even with that

1:41.3

resource wealth aside, they've got a lot of enemies close to home,

1:45.1

many of whom would love to see them wiped out, even if they didn't have all those fossil fuels

1:50.4

and all that money to steal. The dynamic here, then, is that the country with the world's

1:55.4

largest military and massive energy resource needs provides military support, physical and threatened, and diplomatic backing,

2:03.6

for one of the world's largest purveyors of said resources, which itself is located in a highly precarious and tumultuous region,

2:11.6

and surrounded by sworn enemies and potential future sworn enemies.

2:16.6

Both sides of this equation have traditionally gotten a lot from this relationship,

...

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