The Tug Of War Over Saudi Production Policy

The Tug Of War Over Saudi Production Policy

Share to Linkedin Right now, outsiders of various stripes up to and including the U. S. president are attempting to direct Saudi oil policy. Unfortunately, two threads essentially contradict each other. Numerous politicians, scientists, and climate activists are insisting that Saudi Arabia should not invest in additional oil production capacity, while at the same time, politicians, economists, and consumer activists are calling for them to increase production. This is evidenced by dueling headlines: "Saudis resist calls to cut oil investments." WSJ 10/23-24/21 a9 and "White House calls on OPEC to boost oil production as gasoline prices rise" CNBC 8/11/21. In response, the Saudis have announced a plan to achieve net zero carbon emissions by 2060, but in the near term, they have chosen not to raise production beyond what has already been agreed to with its colleagues in OPEC+. It brings to mind the 1978 visit by U. S. Secretary of Energy James Schlesinger, who explained to the Saudis that oil in the ground was worth more than money in the bank, at the same time he was calling on them to invest in more production capacity. In other words, urging them down a path he thought unwise..[1] They did