Gulf Oil And
SYMPO S IUM : GULF OIL AND GA S : WHAT ARE THE PRODUCER S THINKIN G ? GULF OIL AND GAS : WHAT ARE THE PR O DUCERS THINKIN G ? Nathaniel Kern, Fareed Mohamedi, Lucian Pugliaresi, Jean-François Seznec The following is an edited transcript of the sixtieth in a series of Capitol Hill conferences convened by the Middle East Policy Council. The meeting was held Thursday, April 22, 2010, with Thomas R. Mattair presiding. THOMAS MATTAIR: Executive director, Middle East Policy Council, and associate editor, Middle East Policy; author, Global Security Watch—Iran: A Reference Handbook Today we’re examining what the oil and gas producers are thinking when they make their calculations and which economic and political factors influence their decisions. The domestic economic factors would be their need for revenue, their desire to diversify their economies, their need to satisfy domestic constituencies — and, in the case of Iraq, the domestic political instability that could challenge oil development. In the international realm, what are the geopolitical forces that the producers have to take into account? Where is demand falling, and where is it rising? Who do their most important customers have to be in a strictly economic sense, and who are their most important political and strategic partners? We have some divergence taking place there now, as the customers are in the East and the security partners are in the West. NATHANIEL KERN: President, Foreign Reports Obviously, none of us here can speak for the governments in the region. But I will de- scribe some of the changes that have occurred in the historic relationship that the United States has had with a key producer — Saudi Arabia — and then look to the future and the mutually beneficial mixture of “hard” and “soft” power each of the two countries brings to the relationship.
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