You are currently browsing the tag archive for the ‘Saudi Arabia’ tag.
This post continues the conversation in response to my post “Offshore Oil Drilling, Energy Independence, and America’s Security” from April 7th, 2010.
Now let’s set the record straight. While it may be true that Canada and Mexico are the top exporters of oil to the US (when it is broken down by nation), these nations are insignificant when it comes to regions and the greater oil market. Canada and Mexico together are insignificant to the oil market because they do not affect the price of the oil market. This market is what affects our own economy and threatens the security of our nation, creating unwanted entanglements that flow deeper than most realize.
The reality is that the oil market is like any other market in an economy – it fluctuates. But this market is controlled by an exclusive group of nations mainly in the Middle East – the ones who have the most oil – known as OPEC. Neither Canada nor Mexico are card-carrying members, by the way.
Now here is the important thing: in 1945 FDR makes an agreement with Saudi Arabia to secure energy reserves for future interests. From that point on, America has had a vested interest in the Middle East.