Saudi Arabia Breaks 45-Year Taboo With Veiled Threat to Use Oil as a Weapon
OK, let’s just contemplate the IF’s. If Saudis cut back on oil exports, their revenues would go down and prices would go up. That’s a panacea to US shale developers as they enjoy a windfall growing even quicker. Its also a panacea to alternative energy providers as their wares become more competitive. In the end, it just pretties up the business case for LNG as a fuel. Hey, please, Saudi Arabia. Use oil as a weapon. Show us that you are not trustworthy so the world has to factor in a risk of Saudis losing their marbles in any oil transaction. You make my day and the world won’t forget.
For 45 years, it’s been considered out of bounds for Saudi Arabia. But all of a sudden, Riyadh made what many read as a veiled threat to use the kingdom’s oil wealth as a political weapon — something unheard of since the 1973 Arab embargo that triggered the first oil crisis.