[PEN-L:30146] RE: ex-URPE member makes good

["Devine, James" <jdevine@xxxxxxx>]

Title: RE: [PEN-L:30144] ex-URPE member makes good

A longer version of the quote from the fallen-away URPEr:>
Patrick Clawson, deputy director of the Washington Institute for Near East Policy, contends that a pro-US Iraq would lead to a reassessment of the US-Saudi alliance, which dates to World War II but has become strained since Sept. 11 attacks, and the worsening of the Israeli-Palestinian conflict.

>A friendly Iraq - home to the world's second-largest oil reserves - would provide an alternative to Saudi Arabia for basing US troops. Its oil reserves would make Saudi Arabia, the world's largest oil exporter, less important in setting prices, he said. In general, others contend, a US-allied Iraq could work to diminish the influence of OPEC, long dominated by Saudi Arabia, over oil supplies and prices.

>''We would be much more in a position of strength vis-a-vis the Saudis,'' Clawson said.<

I understand that Iraq has lots of oil reserves (at least they do now, before a likely destructive war, in which many may catch fire "accidentally"), but isn't Iraq a high-cost producer, especially compared to Saudi Arabia? So isn't it SA which has a greater ability to set the price? If so, doesn't that undermine Clawson's analysis? I can see Iraq as a military base for controlling Saudi Arabia (except that it would involve constantly putting down insurgencies), but it's hard to imagine it as a major player in the world oil market. Or am I wrong?

One theory of why Saddam H. invaded Kuwait (besides being given the "green light" by the U.S.) is that oil prices had fallen so low that Iraq couldn't make a profit on oil, because it was a high-cost producer. Is this true?

enquiring minds want to know.

Clawson used to be in some Maoist sect, didn't he? It's quite common for sectarians to have "god that failed" experiences.

------------------------
Jim Devine jdevine@xxxxxxx &  http://bellarmine.lmu.edu/~jdevine

> -----Original Message-----
> From: Michael Perelman [mailto:michael@xxxxxxxxxxxxxxxxx]
> Sent: Tuesday, September 10, 2002 10:54 AM
> To: pen-l@xxxxxxxxxxxxxxxxxxx
> Subject: [PEN-L:30144] ex-URPE member makes good
>
>
> Common Dreams has an article from the Boston Globe.
> http://www.commondreams.org/headlines02/0910-01.htm
>
> In it you can read:
>
> Patrick Clawson, deputy director of the Washington Institute
> for Near East
> Policy, contends that a pro-US Iraq would lead to a
> reassessment of the
> US-Saudi alliance, which dates to World War II but has become strained
> since Sept. 11 attacks, and the worsening of the Israeli-Palestinian
> conflict.
>
>  --
> Michael Perelman
> Economics Department
> California State University
> Chico, CA 95929
>
> Tel. 530-898-5321
> E-Mail michael@xxxxxxxxxxxxxxxxx
>