Monday, November 16, 2009

Saudi's Oil production a weapon against Iran?

This initial focus of this article describes the enhancing oil production Saudi Arabis is undergoing. In a mere two years their oil production has gone from a low $35 a barrel but to an astonishing $80 a barrel just last week. The focus of this article is not only to focus on the increased production of oil but how it affects Iran. The Saudi's have proclaimed that their efforts is simply to help out the global economy and it's deficit. But when you look at their neighboring country you notice that their efforts are not only helping them but it's hurting Iran. The Saudi's only need an amount of $51 dollars a barrel to cover its budget but Iran on the other hand needs an average of $90 a barrel. If the Saudi's were able to produce in the range of about $70-$80 for the rest of the year it would help their surplus, but for Iran it would force them to phase out food and energy subsidies in an attempt to help their economy. Not only would this affect their food and energy but this would force them to rethink their efforts on nuclear weapons. This would not only help the Saudi's but help worldwide.

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