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I felt like we should have done that with Saudi oil after 9/11. Why did we let them have no consequences when their policies were most directly responsible for

I felt like we should have done that with Saudi oil after 9/11. Why did we let them have no consequences when their policies were most directly responsible for it, out of all countries in the world? We should have put a tariff on their oil and used Canadian crude until they stopped promoting extreme Wahabiism.

adventured 6y ago
Because it would have crashed the US economy. The US was highly dependent on Saudi oil back then, and Canada could not have come close to filling that gap (their output was 2m barrels per day circa 1999/2000, the US needed both all of that supply and OPEC supply). Over time the US has removed its dependency on Saudi oil, courtesy of fracking. OPEC oil is no longer necessary for the US economy. The most interesting thing about Saudi Arabia going forward is that the US will eventually benefit from destroy them as China is the primary beneficiary of Saudi oil (which will also make US oil that much more valuable, we'll send it to Saudi's #2 and #3 customers, Japan & South Korea). I'd expect the hawks in DC to eventually consider turning Saudi Arabia into another Syria. The second most interesting thing about Saudi Arabia, is their population to barrels of production ratio. It keeps plunging as the Saudi population soars and oil production can't keep up. A revolution is inevitable; that ratio plunging represents a ticking timebomb of the non-elite population's future wealth rapidly declining (while they perpetually fail to develop an alternative economy).
- souprock 6y ago
  No, a US tariff on Saudi Arabia wouldn't matter for either country. Make it an embargo, with other nations coerced into cooperating, and it would matter. The US was getting oil from closer places like Mexico and Venezuela. Some came from Africa. Saudi Arabia only mattered due to the overall effect on world price. Europe would buy from Saudi Arabia, so Europe didn't need to buy from where the US was buying.

adventured 6y ago

Because it would have crashed the US economy. The US was highly dependent on Saudi oil back then, and Canada could not have come close to filling that gap (their output was 2m barrels per day circa 1999/2000, the US needed both all of that supply and OPEC supply). Over time the US has removed its dependency on Saudi oil, courtesy of fracking. OPEC oil is no longer necessary for the US economy. The most interesting thing about Saudi Arabia going forward is that the US will eventually benefit from destroy them as China is the primary beneficiary of Saudi oil (which will also make US oil that much more valuable, we'll send it to Saudi's #2 and #3 customers, Japan & South Korea). I'd expect the hawks in DC to eventually consider turning Saudi Arabia into another Syria. The second most interesting thing about Saudi Arabia, is their population to barrels of production ratio. It keeps plunging as the Saudi population soars and oil production can't keep up. A revolution is inevitable; that ratio plunging represents a ticking timebomb of the non-elite population's future wealth rapidly declining (while they perpetually fail to develop an alternative economy).

souprock 6y ago
No, a US tariff on Saudi Arabia wouldn't matter for either country. Make it an embargo, with other nations coerced into cooperating, and it would matter. The US was getting oil from closer places like Mexico and Venezuela. Some came from Africa. Saudi Arabia only mattered due to the overall effect on world price. Europe would buy from Saudi Arabia, so Europe didn't need to buy from where the US was buying.