http://groups.yahoo.com/group/energyresources/message/11759

My view is that the political factors motivating the mass murder and suicides of September 11 involved the oil industry and globalization in the Arabian Peninsula. Here is the story.

Beginning in 1998 (after the collapse of oil prices due to the Asian Financial Crisis), the Saudi monarchy decided, for "strategic reasons," to globalize its economy and society beginning with the oil sector. The oil industry had been nationalized since 1975, which means that foreign investors were allowed to participate only in "downstream" operations like refining. But in September 1998 Crown Prince Abdullah met in Washington DC with senior executives from several oil companies. According to Gawdat Bahget, "The Crown Prince asked the oil companies' executives to submit directly to him recommendations and suggestions about the role their companies could play in the exploration and development of both existing and new oil and gas fields" (Bahget 2001: 5). These "recommendations and suggestions" were then submitted to a Supreme Council for Petroleum and Mineral Affairs in early 2000 (after being vetted by the Crown Prince), and, by mid 2000, the Saudi government began to cautiously respond to them, by ratifying a new foreign investment law. Under the new law, "tax holidays are abolished in favor of sweeping reductions in tax on profits payable by foreign entities, bringing them nearer to levels that apply to local companies. Wholly owned foreign businesses WILL HAVE THE RIGHT TO OWN LAND, sponsor their own employees and benefit from concessionary loans previously available only to Saudi companies" (Bahgat 2001: 6) [Note: it is obvious why "the right to own land" would be a red flag for anyone committed to the sacred character of the Arabian Peninsula.] The Middle Eastern experts were literally falling over themselves in their effort to highlight the new Investment Regulation. One described it in the following words, "Keep your fingers crossed, but it looks as if Saudi Arabia is abandoning almost seventy years of restrictive, even unfriendly policy toward foreign investment" (MacKinnon 2000). This law constituted, in effect, a NAFTA-like agreement between the Saudi monarch and the US and European oil companies..

Hmmm.... Osama would see this as quite an affront!! more infidels in Saudi !!... .

-- Anonymous, October 10, 2001

Answers

Good morning everyone!

Brent - Nice catch!

I don't have the url handy at the moment, but about 2 months ago I read that Saudi was in deep trouble. Why? Major baby-boom, lower oil prices, which reduced quality of life for younger generations - a breeding ground for rampant fundamentalism.

According to the one article I read, Saudi has an 18% unemployment rate, must ration water, and the job market is terrible (currently only 1 job available for every 2 people, soon expected to be 1/4 when the next group of kids reach 18). The funding situation is so bad that Saudi is actually advocating foreign tourism!

Adding to the mix is that many Saudis are unrealistic as to how the working world really works. In the city of Jedda, a man made front- page headlines for taking a job as a bellhop! Others are upset because they have to take manual labor positions, and they're embarrassed to tell their families - manual labor is only for foreigners, "not" native-born Saudis.

I think you can see the picture, and it isn't a pretty one. No wonder BP has switched to "Beyond Petroleum"...

-- Anonymous, October 10, 2001