Saudi Arabia in the 1980s: Foreign Policy, Security, and Oil

By William B. Quandt | Go to book overview

Chapter Eight
Saudi Oil Decisions

SAUDI ARABIA'S primary means for advancing its national interests is its oil production. Thus decisions on production levels, prices, and investment in future capacity take on extraordinary importance. In addition, they are one of the few concrete, public manifestations of the Saudi political process. Yet even though the record of oil production is readily available, it remains difficult to interpret the motivation behind Saudi oil decisions. As usual, the Saudis themselves are not particularly forthcoming in describing their own motivations.


Economics or Politics?

Two schools of thought exist concerning Saudi oil behavior. One places primary emphasis on economic factors. For example, Saudi domestic and foreign expenditures require a certain level of production to generate needed revenue. In addition, price moderation in comparison to other OPEC members is rational behavior in light of the size of Saudi reserves and the near total dependence on oil as a source of wealth. These factors, often mentioned by Western economists, suggest that it is in Saudi interest to produce substantial quantities of oil at comparatively moderate prices.

But economic analysis can also argue for producing less oil (probably at higher prices), avoiding the accumulation of huge financial surpluses, and counting on future price increases to make oil in the ground a worthwhile form of investment for the future. This is the argument often made by Saudi technocrats who believe Saudi revenue needs could easily be met by producing as little as 5 million to 6 million barrels per day instead of the level of 8 million to 10 million bpd that has prevailed

-123-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Saudi Arabia in the 1980s: Foreign Policy, Security, and Oil
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 196

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.