Energy Matters

Saudi Arabia should have a serious international PR problem. But, it doesn’t.

If you are familiar with an instance in which Saudi Arabia has stepped up and provided aid to individuals in another nation in terms of food, safety or human rights, write in, and I’ll make note of it here.

Meanwhile, I am familiar with none.

Meanwhile, U.S. fuel consumers are sending $700B a year to Saudi Arabia for oil (as noted by T. Boone Pickens at Oil and Gas Investor’s Energy Capital Forum in Houston this June 10), and Saudi Arabia owns a large portion of the U.S. gasoline refining and distribution capacity. (To be clear, Pickens did not discuss this topic; he did say he has donated some $700MM of his personal net worth to many nonprofit endeavors, including Oklahoma State University.)

U.S. producers, meanwhile, are not permitted to own, explore or develop oil resources in Saudi Arabia.

American legislators were alarmed when China’s CNOOC Ltd. tried to buy the U.S.’ Unocal Corp. (the bid was eventually lost to Chevron Corp.), saying American oil and gas producers are not allowed such freedom to outright own oil and gas assets in China, thus it would be unfair that China would own oil and gas assets in the U.S.

The U.S. relationship with Saudi Arabia is with one blind eye, and a wink with the other.

(As for Pickens’ comments at Oil and Gas Investor’s Energy Capital Forum, see Boone Pickens On U.S. Ethanol: ‘It’s An Ugly Baby’, a video press conference with Pickens at http://www.oilandgasinvestor.com/Headlines/WebJune/item2872.php, and the story from his Forum comments at http://www.oilandgasinvestor.com/Headlines/WebJune/item2823.php.)

–Nissa Darbonne, Executive Editor, Oil and Gas Investor, A&D Watch, www.OilandGasInvestor.com; ndarbonne@hartenergy.com 

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