• Saudi Arabia
    Scale and Nature of Attacks on Saudi Oil Makes This One Different
    In the swirl of conflicting reports about who might be responsible for the latest attack against Saudi Arabian oil installations, it is important not to miss what makes this latest attack categorically different from past skirmishes. Saudi Arabia and Iran have been engaged in a deadly proxy war for a number of years, and their respective proxies engaged in oil sabotage as far back as early 2018. More recently, Iranian-backed proxies have hassled international oil tankers, bombed an ExxonMobil operations center in Southern Iraq, targeted a key Saudi pipeline, and attacked a strategically important oil storage hub in the United Arab Emirates. These previous incidents, while signaling the vast vulnerabilities of the Gulf region’s massive energy operations, failed to rise to an emergency because the damages involved were relatively easy to ameliorate. Many considered these early aggressions as an ominous warning sign that more serious attacks could come if tensions continued to escalate. That day has arrived. The perpetrators of this past weekend’s attack on critical infrastructure at Saudi Arabia’s second largest oil field at Khurais and its large and vital crude oil stabilization center at Abqaiq selected high value targets that could potentially maximize the size and length of a partial cessation of Saudi crude oil exports. A U.S. government assessment suggested that the Abqaiq facility that is used to strip impurities such poisonous hydrogen sulfide out of raw crude oil to prepare it for shipping and use suffered from direct hits in at least 17 different places. Damaged stabilization towers and gasoil separation plants (GOSPs) that remove natural gas, sand, and natural gas liquids from raw crude, can be costly and time-consuming to repair or replace.  The targets were selected with an eye to disrupt a large portion of Saudi Arabia’s oil deliveries to market for a long time, not the couple of days more typical of a minor pipeline attack or small volume of a diverted oil tanker.  Shutting down oil fields in a sudden, unplanned manner, which resulted from the extensive damage to the stabilization units, can also create its own unique set of problems. U.S. security analysts have been gaming a missile attack on the Abqaiq stabilization complex for years, apparently not terribly accurately.   The immediate interruption of 5.7 million barrels a day of Saudi crude oil exports due to the attack generated the largest price jump in U.K. Brent crude futures on record. The disruption is currently being offset by sales of oil from Saudi storage facilities. Increases in production from unused Saudi oil fields and from spare capacity from other countries such as the United Arab Emirates will provide offsets in the longer run.  About 5.2 million b/d was lost to markets in the aftermath of Iraq’s invasion of Kuwait in 1990. During the eight year Iraq-Iran war that ended in 1988, the oil export infrastructure of both Iran and Iraq was mostly destroyed. The problem moving forward for Saudi Arabia (and for the United States, should it desire to intervene) is that it may prove tricky to thwart new oil-related attacks by Iran and its proxies. It is very unclear if a U.S.-led coalition preventative attack against missile batteries could even be effective. Iranian proxies and direct Iranian military assets are located on multiple fronts along the Saudi border. Distances are close and oil installations of other countries could also become at risk in any forceful escalation of violence. With so many armed parties across the Middle East, identifying and eliminating major threats to oil facilities will be challenging. Such threats can take many forms including missiles, armed drones, and cyber-attacks. Both the United States and most likely Iran have capability to engage in cyberattacks against each other’s electricity networks.  The real question is why has the deterrence of more conflict, even potentially against targets inside the Iranian homeland, failed to discourage such a large jugular attack on Saudi Arabia’s critical oil nodes? The explanation that it is the best way to force a negotiation rings hollow. The larger move against Saudi Arabia’s oil lifeblood puts the United States in a quandary. On the one hand, the Trump administration has been eager to consider stricter measures, including military strikes, that might deter Iran from new provocations. On the other hand, the United States and its allies surely want to avoid triggering a wider conflict. The attacks on Abqaiq and Khurais seem to give Iran several benefits, including putting the Saudi regime under greater financial pressure, creating a vast political dilemma for President Donald Trump in an election year, and enhancing perceptions of Iran’s hard power in the region.   If one could turn back the clock, doing more to end the bloodshed in Yemen might have provided more maneuvering room before things got to this regrettable juncture. Gestures toward negotiations, including the shuffling of higher volumes of IOU Iranian crude oil exports towards Asia and talk of credit lines, appear stillborn. The region is lurching towards potential economic disaster that will be made so much worse as the climate warms.  Iranian leaders might see geopolitical victory on their horizon but it could turn out to be a hollow one for their 80 million people.
  • Iran
    Is Iran Escalating Gulf Energy Attacks?
    The attacks on the sprawling Saudi oil facility bear all the hallmarks of an Iranian operation, marking a dangerous new phase in Gulf tensions.
  • Saudi Arabia
    Progressive Foreign Policy: A Conversation With Senator Chris Murphy
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    Senator Murphy discusses his progressive foreign policy vision and national security interests in Yemen and Saudi Arabia.  TALEV: Thank you. I’m going to be really concise, conciser than normal, this morning because the Senator actually has somewhere to be a little bit early, so we’re going to do half an hour of the you Q&A in twenty-five minutes. So we’re going to make this happen. Good morning. Welcome to today’s Council on Foreign Relations meeting with Senator Chris Murphy. I’m Margaret Talev, the politics and White House editor for Axios, and I will be presiding over today’s discussion. Senator Murphy, as you all know, is the junior senator from Connecticut. He is a member of the Foreign Relations Committee, and the top Democrat on the Subcommittee for the Near East, South Asia, Central Asia, and Counterterrorism, which will explain all of his planned adventures this summer, most of which got cancelled and redirected. He is also a leading advocate, as all of you know, in the bipartisan push right now for a gun control package that the president or Republicans can get behind. And his congressional district before joining the Senate included Newtown, Connecticut, home to Sandy Hook Elementary. So with that introduction, Senator Murphy, please come on up, make a few comments, and then we will move to this portion of the conversation. Thanks, again, all of you for being with us. (Applause.) MURPHY: Well, thank you very much, Margaret. I’m excited to spend some time with you here on stage. Thank you to all of my friends at the Council for having me back once again, and for all the great work that you do to keep the foreign policy community connected to Congress here in Washington. I want to talk to you a little bit this morning, for about ten minutes or so, about the future of what I will call progressive foreign policy, with an eye towards the next administration. In the two Democratic debates that we’ve had so far, if you count generously, candidates about spent about thirty minutes talking about foreign policy out of nine hours of debate. That’s less than 6 percent of the time on stage. And only two of the candidates have released anything that could be fairly characterized as a foreign policy plan. And we’ve seen a lot of plans from candidates. I get that primary elections generally aren’t decided on international issues, and this one probably isn’t going to be different. But if tonight’s debate plays out like the first two, I’m going to actually stat getting worried for my party for two reasons. First, I just think Democrats who are running for president have a civic responsibility to flesh out their vision for the world before they sit in the Oval Office. If Congress remains divided, then it’s going to be foreign policy where the next president has the most discretion. And I want a president who has given some real, deep thoughts to these big, hairy questions of how America intersects with the world before they get there. But second, I think in the last few months, and indeed just in the last few weeks, we have seen a major opening for Democrats to seize on the issue of national security. Trump won the election in part by selling himself as a deal maker who could get big things done with Iran and North Korea on nukes, with China and Europe on trade, with Mexico on the wall. But Americans are now coming to grips with this realization that none of those deals are getting done. It’s the most potent indictment of those dealmaker claims. And Trump’s casual flirtation with war with Iran, and his waffling on troop levels in the Middle East have made Americans really worried that Trump can keep us safe. Now, Democrats maybe can’t completely close the national security gap with Republicans that traditionally exists. But Trump gives us reason to try, because if we did we could make more progress on this gap, this election, than in the past. And that might make the difference in 2020. So here are a few thoughts to chew on, a little unsolicited advice for the small cadre of foreign policy thinkers who are advising our 2020 candidates. First, let make a simple argument, and it’s this: There is almost no important domestic progressive value that can be advanced without a foreign policy complement. You care about repairing America’s broken democracy? Well, the better China gets at exporting the tools of tyrants, the less check Russia feels on its efforts to manipulate foreign elections, then the less healthy our own democracy becomes. You want to focus on immigration? Well, the less involved America is in fixing broken counties in Central America the more refugees show up at our borders. And guess what? The xenophobic national movement is, indeed, global. When antiimmigrant parties score victories in Europe it strengthens the hand of similar movements here. Now, your priority is the climate? Well, you can’t save the Earth without global engagement. And rejoining Paris is just the easy part. After that, we need a massive global diplomatic effort to convince countries to comply. My point is this: Even for the Democratic candidates who say it’s time to focus on American problems, our issues don’t exist in a vacuum. If you care about democracy, or human rights, or the environment here, then you have to care about these fights everywhere. And you need to be engaged on them everywhere. But of course, there’s another reason for America to reenter these values fights. The world is a safer place the more people have access to self-determination, and freedom of speech, and protection from persecution or discrimination. The ideas that undergirded the post-World War II order have not suddenly come undone. Democracies still tend not to attack each other. Countries where women have equal rights to men, they breed fewer terrorists. Participatory democracies and open economies are still the best protection against instability. And of course, progressives should never cede ground about which party or political movement cares more about protecting America. We put our nation’s security first. And that’s why we think that we should put democracy promotion, and human rights, and climate change, back at the center of American foreign policy. Now, really, in some ways, that’s the easy stuff, elevating our game on these critical topics. Here’s the tougher sled, and it’s what I want to spend just a little bit more time talking to you about this morning. The foundational crisis that the next president will face is that his or her foreign policy toolkit, the levers that the president can press to try to protect and advance our interests abroad, is basically a 1988 Ford Taurus on a road that is crowded with shiny new Teslas and Land Rovers. Our obsession with defense buildups in a world where the most significant threats to the United States are not conventional military threats, and our refusal to create capacities to meet our enemies where they exist—this destines to slide us into global irrelevance, unless we figure out a new way to meet modern threats with modern capabilities. Now, before I go through a few of these new tools that the next president is going to need in order to be successful, let me give you just two examples of how our current toolbox is totally failing American national security interests. First, let’s look to Ukraine, where a new reformist president, who I met in Kyiv for the first time last week, is trying to deescalate tensions with Moscow. The American response to Russian aggression in Ukraine has been mostly a military one, because that’s what we do. Four billion dollars a year in new troop and equipment deployments to Eastern Europe, radar systems, javelin missiles, troop training packages for Ukraine. But Putin doesn’t change his behavior. Why? Well, because Putin actually doesn’t want to march his army on Kyiv. He wants to politically and economically destroy the country so that they eventually tire out and decide to cut a deal and return to Russia’s orbit. Brigades and missile systems aren’t a bad idea, it just can’t be our only idea. Putin delights when we spend $4 billion on military hardware and virtually nothing to try to break his energy grip on Europe, or attempts—or his attempts to hack into and disrupt the Ukrainian economy, or to use bribery to undermine an already corrupt military system. We’re not meeting Putin where he sits in Ukraine and the region. Second, let’s look at how the American government today is dealing with the global information war. China, Russia, North Korea, terrorist groups, they’re all putting billions of dollars into manipulating information flows around the world, especially in sensitive political environments. Now, it’s taken us way too long to catch up, but finally a few years ago Senator Rob Portman and I passed legislation establishing a new center at the Department of State, the Global Engagement Center, to combat global propaganda. Now, that’s the good news. The bad news, the money’s not in the State Department. The money is in the Department of Defense. And so the Department of Defense is quietly ramping up its antipropaganda messaging operation because, well, they’re the only ones who have the money to do it. Now, it would be more effective to empower voices in countries on the front lines of Russia or China’s information wars rather than American military bureaucrats. With small budgets, you can only afford to entertain small ideas, so we’re not thinking about funding high-quality content to help independent media outlets or funding a Russian language version of Al Jazeera that could be a real alternative to Russian satellite channels. There are hundreds of other examples of how badly we bungled our smart power tools, but the bottom line is this: the obsolescence of American foreign policy—of the American foreign policy toolkit is the real crisis. And building a new toolkit serves progressive values in two ways. First, it allows us to more effectively fight for democracy and human rights in climate, which are both domestic and global priorities for progressives. But creating more effective national security capabilities and relying less on the bluntness of raw military power and arms exports, it will get us into less dumb wars and military conflict. That’s a progressive value as well. Now, listen, we shouldn’t let our guard down. We’re never immune to a conventional military attack, and neither are our treaty allies. And I do believe that peace comes through military strength. I’m not arguing for a massive downsizing of our military budget. But there is such a thing as too much of a good thing, especially when military spending comes at the expense of creating capabilities that actually meets the threats that we face. So what do we need in this new foreign policy—this progressive foreign policy toolkit? I’ll end with just a few ideas. Number one, we desperately need more economic leverage around the world. In the Cold War, there were two superpowers. We, frankly, didn’t need to be that nimble to win economic friends because your only other choice was the communist Soviets. Not so today. The Chinese, the Indians, the newly semi-capitalist Russians, the Gulf states. Everyone is looking to win friends over to their value system based on economic relationships, and we’re losing out. Consolidating our international development agencies, it was a nice start, but we need to supercharge the investments that America—still the world’s biggest economy—can offer other nations. For instance, the Chinese are developing a model where they midwife a technology in their closed government-subsidized and controlled economy, and then they release it onto the world at a dirt-cheap price. Now, we need to have an answer to what China has done with 5G, and what they’re going to do with advanced batteries and AI in the next decade. And it can’t just be a robust campaign of shaming other nations who partner with Chinese companies. We need to put real public dollars, ideally in coordination with the Europeans, behind partnerships with Western companies who want to develop true competitor products to Chinese tech exports. Number two, progressives shouldn’t be afraid of new multilateral trade deals. Free trade can be a progressive idea. Now, we should rework the Trans-Pacific Partnership so that it’s less friendly to corporations and more friendly to workers and the environment, but it’s a mistake for progressives to not see trade policy and critical statecraft. We can use trade agreements as a way to export our values and our interests. We shouldn’t forsake this tool just because we signed some bad trade deals in the past. Number three, let’s get really serious about supporting existing democracies and fighting corruption in all countries, whether or not they’re democratic. If you total up all the money that the U.S. Department of State spends annually on protecting democracy and fighting corruption abroad, it’s about $2 ½ billion. Now, that sounds like a lot of money, but that’s as much money as the Department of Defense spends in two days. And it, frankly, pales in comparison to the amount of money that China, and Russia, and others are leveraging to undermine fragile democracies. So how do we do this? Well, here’s just one idea: Let’s create a new category of foreign service officers dedicated to fighting corruption abroad so that every single embassy in the world has one or more dedicated American staffers that put on—that are working on putting and protecting the rule of law first and from attack. Number four, and lastly, we need to harden the State Department and USAID. I always think back to this trip I took in 2011 when I was visiting Western Afghanistan. We met with a capable group of Army commandos who were protecting Afghan farmers from attacks by the Taliban. And that was great. What was not so great, the farmers that were protecting were growing poppy and selling it to the Taliban who now, with this American protection, at least paid for the crop, instead of having the Taliban steal it. What those farmers really needed were agricultural advisors to help them grow another crop and Afghan-speaking political advisors to help them negotiate a détente with the Taliban once the poppy supplied disappeared. But because all we can do in dangerous conflict zones is deploy twenty-year-old commandos, we are stuck guarding the poppy fields for the enemy. Or in Syria, where during most of the conflict over the last decade you know how many State Department advisors we’ve had side-by-side with our thousands of soldiers there? One. General after general tells us Syria is a political, not military, problem. So why don’t we have diplomats there? Well, because we haven’t developed any real hybrid class of diplomat warrior, despite the general failure of soldiers to do effective diplomacy. That can change. And progressives should lead that effort. And these are just four ideas. They’re the tip of the iceberg when it comes to new capabilities to meet Russia and China extremist groups where they lie. But the lack of creativity in American foreign policy today is maddening to me. But as I said, so is the lack of attention to serious national security thinking amongst leading Democrats. And if we don’t start thinking outside of the box about how to bring progressive values to the world stage, then no matter how the next president reorients American priorities, he or she won’t actually be able to effectuate new goals with the same military-heavy toolkit that exists today. Recognizing the new realities of the threats that we face and shifting our capabilities to meet these threats, that should be the goal of progressive foreign policy. This shift will benefit progressive values at home and keep us from falling into more ill thought out wars of choice abroad. Thank you very much for your time this morning, and I really look forward to a good discussion. Appreciate it. Thank you. (Applause.) TALEV: (Off mic.) MURPHY: (Laughs.) I am going to watch the debate. I didn’t watch all of the first two, because it was just hard to follow that many candidates. This one will be a little bit easier. TALEV: The seven-hour climate change debate? MURPHY: What’s that? TALEV: The seven-hour climate change—it wasn’t a debate; it was a town hall. MURPHY: And I guess—listen, I made the point that my friends who are running for president should be thinking more about foreign policy and that those that are questioning them should ask them more about it because it’s important. But I would also argue, it probably would expose some interesting differences between the candidates. If all you’re interested is fireworks on the debate stage, I imagine if you asked some pretty complicated questions about the negotiations with the Taliban or the future of U.S. relations with Israel, you might get some distinctions in the way that the candidates on that stage present their arguments and their beliefs. And so, yeah, I think there’s a lot of good reason for it to be a bigger part of the debate tonight and going forward than it has been. TALEV: I’m going to ask you about John Bolton, because we’re all thinking about it. But I want to ask you, just in terms of the Democratic field right now, as far as you can tell who do you think actually has the most substantive sort of built out foreign policy plan? I know you haven’t decided to, you know, publicly support anybody yet, but does everyone have a robust foreign policy team? Are you familiar with who everyone’s advisors are? MURPHY: No, I think it’s remarkable that there has been so little serious discussion of foreign policy proposals and priorities thus far in this campaign, especially because, as I mentioned, there’s been no shortage of serious thinking about policy. So there’s dozens of domestic policy plans that have been released by these candidates. But as far as I can tell, none of them have put down on the table an idea—their idea for what American presence in the Middle East will look like during their four or eight years in office, or what they would do alternatively in Syria or in Afghanistan. I get it. There’s maybe not a lot of demand for that amongst voters in Iowa or New Hampshire. But if you haven’t thought about those questions before you show up at the Oval Office, it’s hard to make it up on the fly. Bernie and Elizabeth have given speeches or written pieces outlining some of their basic priorities. Pete Buttigieg has given some interviews on this topic. Obviously those who come from the Senate, you know, have a just built-in set of experiences and expertise. Cory is on the foreign relations committee. But I think it’s really fascinating how little this discussion has been present. And I think that needs to change. TALEV: Do you think the phrase, “progressive foreign policy,” is there an agreement on what that means? Because I see different people use it in different ways. There’s a piece in The Atlantic this morning that, I’m paraphrasing, but the headline is something like: The problem with progressive foreign policy, or why it can’t work. And I’m just—I think I understand the rhetorical appeal of the phrase, but does it mean the same thing to everybody? MURPHY: No, it probably—it probably doesn’t. And, you know, the case that I’m making here today is that we should perhaps sort of simplify the discussion that we’re having about progressive foreign policy. I think we should connect our domestic progressive priorities to the fights that we have abroad. We need to understand that if you’re fighting for democracy here, if you’re fighting for human rights here, you have to be engaged globally on these issues. And, second, I do think that what does unite progressives is the idea that we should learn from our mistakes in Iraq and Afghanistan, while not withdrawing from the world. A progressive foreign policy is one in which we give the presidents the tools to succeed globally, other than the deployment of American troops or the export of American arms. I think that’s at the center of progressive foreign policy, right? We want We want a role in the world, but we want that role to look different than what has been available to prior presidents who really, when they saw a crisis, could only respond to it militarily. And that’s why I’m talking about capabilities. That’s why I’m talking about the nuts and bolts of what a president has at his disposal in order to respond in Ukraine, or in Syria, or in Central or South America. I think a progressive foreign policy is about capabilities. It’s a much more concrete discussion. And I think it ultimately gets us to the place where we want to be, which is forward-deployed with less chance that we get into dumb military conflicts, or we export weapons that end up facilitating or fueling dumb military conflicts. TALEV: Is it an anti-war platform? MURPHY: It’s not an anti-war platform in the sense that we always reserve the right to use military force in order to protect our interests abroad. But it is a recognition that, you know, over the last thirty years the threats that we faced are, by and large, not conventional military threats. But we don’t have the capabilities to meet Russia or China where they exist. And often, we try to—we try to create an adversary that is focused on fundamentally unconventional military attack. That’s why I make this point about Putin’s aims in Ukraine. Yes, he has figured out a way to sort of create hybrid military conflict, in which he’s invading without really invading. But ultimately he doesn’t want to march that army all the way to Kyiv. And we don’t have the capabilities to meet all of his asymmetric tools. TALEV: John Bolton’s departure this week as the national security advisor, it sort of had all the drama we’ve all come to expect out of daily operations at the Trump White House. But I’m wondering, like, what do you think it actually means for foreign policy? I’ve heard a lot of people this week say it doesn’t matter who the next national security advisor is because Trump’s going to do what Trump wants to do. Do you think that’s true? And, like, what are you looking for in the next month, kind of as he—you know, the president has said he’s going to name a new national security advisor probably next week. UNGA is coming up. You know, the spectrum of a potential Rouhani meeting—although the White House keeps downplaying that. Like, what are kind of the litmus test that you’re looking for in the next month, and do you think it matters that John Bolton’s gone? What impact do you think it will have? MURPHY: Well, the choice of national security advisor can’t not matter. Proximity to the chief executive always matters. And I think it matters in particular with this president. And the fact of the matter is, no matter how empowered Mike Pompeo is by the departure of John Bolton, he still isn’t in the White House every day. The national security advisor is. And so this choice does matter. Now, Trump, you know, is obviously very personality driven. And so if it’s somebody that he trusts and grows to trust, that person will naturally matter more. And so we’ll all watch this choice very carefully. But I don’t think you can say that it doesn’t matter. One of the points that I’ve tried to make in the last few days, which has been lost a little bit by my progressive friends, is that as bad as John Bolton is, we do have to also remember that there’s, you know, about 20 or 30 percent of foreign policy that is truly controversial, right, where there’s big differences between Republicans and Democrats. Seventy percent of it, you know, is basic blocking and tackling of American interests abroad, in which we don’t have disagreements. I was in the Balkans last week. And, you know, there’s not big disagreement between Republicans and Democrats about the role we should play to bring Serbia and Kosovo together in mutual recognition. And John Bolton was working on that, just like he was working on other things. And so I have always worried about John Bolton’s fascination with war, but I also worry about how fast we’re cycling through personnel in this administration because on the stuff that we don’t disagree on, this instability of personnel at the top of the White House is making the advancement of our interests impossible. When, you know, the president of Serbia and the prime minister of Kosovo don’t know who to talk to on a regular basis, even on the stuff that Republicans and Democrats can agree on, we can’t get anything done. TALEV: You must have agreed with John Bolton on some things, like perhaps his stance on Russia. I mean, do you—like, do you think that every instinct John Bolton had took the president in the wrong direction or do you think there are some firewalls that he put up that did help to slow down or hold back policy that you might not have been comfortable with? MURPHY: Well, I mean, listen, there’s not going to be anybody, you know, that occupies that position that I will disagree with on everything. And, you know, John Bolton, you know, did seem to have brought us to the brink of war with Iran. And so we were dangerously close, perhaps minutes away, from entering a conflagration with Iran that would have essentially dragged down the entire region. So you know, as dangerous as we thought John Bolton was, he might have been just that dangerous. But, yes, there were issues upon which he was giving good counsel to the president. But it doesn’t seem as if he had much impact. If he was trying to tell the president to put conditions on our reintegration of Russia with the G-7, the president wasn’t listening to that advice. The president seems to have made up his mind on some pretty big topics around the world. And no matter who you put in these big jobs, it doesn’t seem like there’s a lot of success in convincing him not to talk to dictators without preconditions, not to try to find ways to bring Russia back into the global hierarchical infrastructure. TALEV: Do you expect the president to meet with Rouhani? MURPHY: I don’t know. I mean, I guess I stopped trying to predict or expect anything from this White House. You know, I was—listen, obviously, you know, I’m torn, admittedly, on, you know, how this White House should conduct diplomacy. I generally am not a believer in refusing to talk to adversaries, or even enemies. But it is just absolutely startling how little diplomatic blocking and tackling this administration is willing to do ahead of a meeting between the president and a leader of a nation that is adversarial to us. And while I supported Trump’s initial talks with Kim Jong-un, in the end, you know, those series of talks didn’t move the needle significantly on any of the issues that are of concern to American and our allies. And it did legitimize his regime. And so if you’re going to just meet with Rouhani for a photo op, and you’re going to actually do nothing to bring them back into the JCPOA or try to address concerns about their ballistic missile program, then I do think we have to ask questions about whether we’re better off with or without that meeting. TALEV: And sanctions—if dialing back sanctions are a precondition for a meeting, do you support that at this time? Do you think the sanctions on Iran are appropriate right now? MURPHY: Well, no, I don’t believe that the sanctions are appropriate, in that they were applied to—as part of the president’s withdrawal from the JCPOA. And of course, this report from last night is just sort of too hard to believe, the idea that the president is going to release $15 billion in coordination with the Europeans to get Iran back into the compliance with the agreement, so that he can get his photo op, right? The idea that we are now paying additional money—or thinking about paying additional money to the Iranians—to get them to comply with a deal that they were already complying with, so that Trump can get a photo op, is kind of the personification of this administration’s foreign policy in many ways. And a sign of, you know, in fact, how hard it was always going to be to get any kind of deal with Iran that was better than the JCPOA. TALEV: I hate this clock. This clock is killing me. Let’s do a couple real quick, and then I know you guys have amazing questions so I will—I’ll forgo some of my other amazing questions. MURPHY: I’ll give short, amazing answers. TALEV: (Laughs.) Next month marks the anniversary of Jamal Khashoggi’s murder. Do you think that the Saudis are being held accountable by the rest of the world, and by the U.S.? And can you bring us up to speed on the latest with your plans, along with Senator Young, on forcing the vote on U.S. security assistance? MURPHY: The Saudis are not being held accountable. Mohammad Bin Salman has gotten away with murder. And it frightens me. The message that’s being sent to dictators and would-be dictators around the world about what they can get away with, especially when it comes to people under American protection. And I’m just absolutely heartbroken that the United States has somehow overnight become the inferior partner to the Saudis in our bilateral relationship. They call the shots, not the United States of America. And especially today, when we are less reliant on their oil than any before it confuses me as to why that would be the case. Senator Young and I have discovered a unique means by which we may be able to change our bilateral relationship for the better. Inside the Foreign Assistance Act is an ability to take a vote to compel a human rights report on a security partner. And then after that report is filed, Congress can pass legislation with fifty votes rather than sixty to change the nature of the security relationship in any way, put conditions upon it, for instance. I think that that’s an important new vehicle to try to perhaps put some conditions related to the investigation of the Khashoggi murder on our security assistance. But I think the president’s made it pretty clear by now that he’s going to veto anything we do to change our relationship with Saudi Arabia, as he did with our resolutions to pull United States troops out of the military coalition vis-à-vis Yemen. And so I think we need to keep the pressure up. I think we need to keep forcing these debates in the Senate to make the world understand that this silence on the Khashoggi murder from the administration is not shared by Republicans and Democrats in Congress. But I don’t know that that eventually results in legislation being signed into law. TALEV: We haven’t talked about Russia yet, and getting denied entry. Perhaps someone will ask. I want to close the part of our conversation actually with a domestic policy question, but I think it has broad interest to the rest of the world given the U.S.’s sort of unique status when it comes to guns and the general public. You, and Joe Manchin, and Pat Toomey, and Lindsey Graham, a bit, have all been trying to figure out what kind of a bipartisan gun control effort is ultimately amenable to President Trump and passable in Congress. And I’m just hoping you can briefly bring us up to speed. We know that you were in discussions with the president as recently as yesterday. Will you talk to him today? And how imminent is a decision or announcement on what could happen? MURPHY: So we had a—you know, about a forty-minute conversation with the president yesterday. We got into some of the details about expanded background checks. Others talked to the president at length later in the day. I don’t know whether I’ll talk to the president today, but I expect that our teams will be meeting throughout the day. I think the president needs to make a decision about whether he wants to get behind the 90 percent of Americans who support expanded background checks. And I think what we don’t know yet is whether he’s willing to do that, because it would involve taking on the NRA. The gun lobby is never going to support any expansion of background checks in this country. And the president has, I think, the right instincts, which is why he’s still personally involved in these talks, that the gun lobby is weaker than ever before, and this has become a voting issue for swing voters, and a turnout issue for young people in this country. But I don’t think he’s made the decision to break with the gun lobby and really sit down and do detailed negotiations with those of us who work on this issue. I will agree with you this is an international issue. I always remember a story that Matthew Barzun, our Obama-era ambassador to Britain told me. He said when he would go around to schools, he’d hand out two cards. And on one card he’d ask kids to ask a word that reflected something they liked about the United States, and on the other card a word that reflected something they didn’t like or confused them about the United States. And he called me to tell me about this exercise because he said, Chris, if you believe it, that on 70 percent of the cards in the second category the same one word is on the card? And this is sort of 2013-14. And so I was wracking my brain. I said— TALEV: Right after—right after Sandy Hook. MURPHY: Well, it was right after Sandy Hook. But it was also right after the disclosures about tapping Merkel’s phones, it was still in the—you know, in the aftermath of the Iraq War. So I said, well, is it spying? Is it Iraq? He said, no, it’s guns. It’s guns. Seventy percent of kids in England say the one thing they don’t understand or don’t like about the United States is guns. And so our inability to deal with this issue is one of the things that pushes us away from our allies. And from the very start, our foreign policy has been predicated on creating a model—an economic and a governance model here in the United States—that is so attractive to the rest of the world that they want to sign up with us. It’s not just about how strong our military is overseas. It’s about what the American experience represents to people. And this failure to deal with the epidemic of gun violence in this country, it is part of the story as to what drives allies and potential allies away from the United States. TALEV: Thank you. OK. At this time—oh, good, I see a couple hands—I would like to invite members to join in our conversation. And I want to remind everyone, this meeting is on the record. There are cameras in the back, as you can see. When I call on you, please wait for the microphone, and then if you would share your name and affiliation with us also that would be awesome. Keep them tight. We’ll get as many as we can. OK, let’s start right here. Q: I’m Paula Stern. And I’m going to ask a question based on my service for 10 years at the U.S. International Trade Commission, which I chaired. The use of economic nonmilitary instruments, you talked about trade and you talked about the idea of a progressive policy that would have a new multilateral trade negotiations. I’m wondering if you would address the existing theories of bilaterals we have put in place, the Trump administration has, and specifically the steel Section 232 restrictions on many of our allies, and many of the countries, for example you mentioned Ukraine three or four times. Whereas, there have been deals made separately with some other countries to not have the restrictions, as spelled out in the original proposals, country by country, that the president placed. So I’m wondering how you use our trade relations with these individual countries, recognizing that you said that military is something that we real on way too much, and that your new progressive policy should look at non-military means. MURPHY: Sure. Well, listen, there are all sorts of other elements, I would argue, to a progressive foreign policy vision of the world that I did not mention. One of them is the reinvestment in international associations and bilateral—multilateral arrangements. So I think progressives do believe that the world is safer if we all have forms through which we are interconnected. And that is something that this administration fundamentally does not believe. They are interested in the delegitimization of bilateral associations, organizations, and efforts. Which is why, on trade, they have chosen to conduct themselves on a bilateral basis. That is connected to their overall agenda of trying to delegitimize bilateralism. I share in the concerns of some of my Republican colleagues, Pat Toomey chief amongst them, who we just mentioned, the way in which the president has gone around Congress to try to use tariff policy as a national security tool, when it is actually Congress that is vested with the authority to institute tariffs for economic reasons. And so I think Congress has to capture back tariff authority. And the president has, you know, tried to convince us that it’s all about national security when really he is using it for classic economic justifications. And in general, I just think you got to be really careful about using trade policy and sanction policy as a tool to try to push American interests around the world. At some point the dollar may not be the world’s default currency. At some point, people may tire of the United States using our economy as a means to try to bully nations into complying with our national security priorities. Now, I’ve supported sanctions efforts. I’m not saying that I haven’t voted for those efforts. And I do actually think sometimes it makes sense to call countries to task with tariffs. But we have become generally over-reliant on using tariffs and sanctions as a way to bully countries into working with us on host of issues. And that has some real danger for the nation moving forward. Q: I’m William Hauser, Inter-University Seminar on Armed Forces and Society. And my question is, do you support or oppose the expansion of petroleum supply across Central and Northern Europe by Russia? MURPHY: So part of my trip last week that we’ve referenced a few times was to Germany, to make—are you talking about Nord Stream 2? I assume you’re talking— Q: About petroleum pipelines going through Europe. MURPHY: Right. So part of my trip last week was to—was to Germany to make the case to them that the completion of the Nord Stream 2 pipeline, which is about bringing gas into Russia—into Germany and Europe from Russia is a terrible idea, and that we are essentially countermanding the effectiveness of our sanctions policy against Russia, which we have jointly agreed to, by then allowing Russia to build pipeline capacity into Europe that obviates their need to continue gas flows through the Ukraine. Senator Johnson and I, he’s a conservative Republican from the Midwest. He and I have a piece of legislation that would stand up a billion-dollar American development capacity to support efforts inside Europe and other places to make them truly energy independent. Right now, again, we give advice of how you can wean yourself off of oil and gas produced in other places. We, again, try to sometimes use sanction policy to stop our friends in Europe from becoming more dependent on outside-produced fossil fuels. But we don’t really offer any help to them to do that. And so my view is that we should use the largess of the American government and of our finance institutions to actually help finance some of these wind projects, these solar projects, these geothermal projects in and around Europe. So I have grave misgivings about the construction of new pipeline capacity. But I think we can’t just complain about it, as the United States. We actually have to help the Europeans, especially some of the—some of the less-developed of the Europeans, come up with new plans. TALEV: So we found something you and President Trump have in common, on Nord Stream 2. MURPHY: Right. TALEV: OK. In the back. Yes, in the white dress. Q: Hi, Senator. Thank you so much. Can you also speak a bit more about a progressive foreign policy vis-à-vis some other transnational challenges? And specifically I’m thinking about climate change, about nuclear nonproliferation, and about refugees. TALEV: Don’t forget to identify yourself. Q: Yes. Who am I? Alex Toma with the Peace and Security Funders Group, and a very proud term member here at CFR. MURPHY: You know, so I did—I did reference these issues, as I was talking about, you know, progressives domestically care about the issue of immigration, and the treatment of minority groups, and of course if you care about those issues domestically you have to care about them internationally. You have to invest in economic development and security assistance in the Northern Triangle in order to allow people to stay home, which is what they want to do. They don’t want to have to flee to the United States. And of course, if you care about protecting our interests in the Middle East, then you have to understand the danger that refugee flows out of places like Syria presents to our national security and the national security of partners there. You know, we could care about refugees in dangerous places around the world because we are compassionate progressives, but we can also care about refugees in dangerous places because of cold-blooded national security interests. And so you know, from a progressive foreign policy viewpoint we can—we can pick, right, either genesis of our—of our concern. And I mention on climate change, one of the reasons why, you know, you need a massive investment in diplomacy generally around the world, and why you need to sort of fix our relationships with our allies and with our—and with our competitors, is that, you know, joining Paris is going to be the easy part, right? I mean, we have come to sort of mistake Paris for the end of the negotiation rather than the beginning of the negotiation. And so you are going to—you are going to have to have a surge of diplomacy as part of a progressive foreign policy agenda, because in order to negotiate to the climate—the climate goals in Paris, you’re going to have to have American leadership in a way that it doesn’t exist, obviously, today. Q: I’m Ari Baki (ph) with the Council on Foreign Relations and Lehigh University. Senator, you put democracy promotion at the heart of a progressive foreign policy. And what I would like to so is ask you to be a little bit more specific in terms of how you would apply this when the Democrats come to power, and say you were influential in this. And I’ll give you essentially three sets of countries to see how you would deal with them. Let’s start with alliances like Hungary and Turkey, where you have authoritarian leaders that have usurped the democratic processes. You have adversaries like China and Russia. And then you have important countries like India, where a populist leader is increasingly doing things that are quite undemocratic. So how would you approach these three types of problems, if you want, in terms of democracy promotion and give some meat to your arguments? MURPHY: Sure. So, you know, we often—we often create this dichotomy in American foreign policy in which we have interests here and values over here. And then we sort of ask how you would choose between values and interests. I think that’s a mistake, because, as I’ve argued, promoting democracy abroad is an interest. It’s not just a fuzzy value that Americans have. It’s an interest. We believe that the more people that have access to democracy, the more safe the world and the less threats that we face, and that ultimately the more stable our own democracy is. And so I think you have to sort of sit democracy promotion in a list of interests that you have in every one of the bilateral conversations that you referenced. And my argument is that you should be elevating democracy promotion in the conversations that you have with a sort of sometimes ally, like Turkey or the countries in Europe, that you mentioned. And that you need to be raising these issues and concerns earlier in your bilateral meetings and negotiations in a way that we aren’t today. Second, I think we need to be working together with the European Union in raising and presenting these concerns. I think if you’re not doing it jointly, then you aren’t making real efforts. Third, I think you’ve got to recognize the threats that are presented to democracy in these places. Part of the reason why I think we have to have these new beefy anti-propaganda efforts is because Russia is sort of taking advantage of the fact that we’ve downgraded democracy promotion in our conversations in a country like Turkey, right? They use information warfare to spin up anti-democratic narratives in those countries and provide excuses for Orbán to consolidate power. Well, I would argue that we have to be playing defense and offense when it comes to the information warfare against democracies. Defense in the sense that we need to identifying and rooting out these Russian trolls, and bots, and working with our allies in places like Hungary, for instance, to do it. Offense, in that we need to be funding counternarratives. We need to be actually putting money into truly objective journalism that’s going to identify the trolls, but also tell less objective narratives in these countries. That’s actually what the Global Engagement Center was setup to do. And then I do think occasionally you have to draw some hard lines and send some messages about allies that have just gone too far in attacking freedom of speech. And that’s why, to me, Saudi Arabia is a really important case study here. I think that when we don’t convey real consequences for murdering a journalist, a dissenter, someone that sought protection in the United States, then we are sending a message to all of those countries that you mentioned about what they can get away with. And so I wouldn’t argue that you break off relationships with every country just because they are backsliding on democracy. I think you attack some of the insidious forces that help those attacks. I think you elevate the conversation in the bilateral relationship. But then you do find ways to send hard messages that there is a moment that you’ve gone too far, right? There is a moment at which you can’t be part of Europe any longer if you’re not going to be a democracy. There is a point at which American security assistance does shut down, if you start going after—physically going after journalists or political dissenters. And we’re not doing any of those things. We’re not elevating the conversations. We’re not attacking propaganda. And we’re not showing where our bottom line is. TALEV: The pink jacket. Q: (Off mic)—from Al Jazeera. I just wanted to pick up on the issue of Saudi Arabia. You sent a letter this week, along with Senator Young, to the Saudi crown prince, regarding aid to Yemen. Do you think—is this a new approach to, you know, address him directly? And do you think that you will get any response from the Saudis? And what would happen if that aid is not released? And just one quick question, regarding the resolution that you have introduced along with Senator Young, is there a timeline for forcing that vote in the Senate? MURPHY: So I am—I’m infuriated that this withdrawal of funding for the U.N. has not gotten more attention here in the United States and globally. The beginning of this year, the UAE and the Saudis committed $750 million each to the U.N., which was commensurate to their commitment last year, in order to stave off what is going to be the inevitable starvation and disease this fall and this winter in Yemen. Cholera numbers are already spiking in and around the country. The Emiratis and the Saudis welched on their commitment. They literally pulled it back and decided that they weren’t going to make it, too late in the funding cycle, really, for other nations to make up the difference. And so as we speak feeding programs, health care programs, immunization programs that the U.N. runs in Yemen are shutting down. And tens of thousands, if not hundreds of thousands of Yemenis, many of them children, are going to die this month, and next month, and the month after because the Saudis and the Emiratis have decided that they are not funding the promises that they made. That is a moral abomination. And we should be raising this every single day with the Saudis and the Emiratis. And I’m going to be honest with you, this administration is not doing it. They are raising it, but they have all sorts of other issues that are on the table with them that often come first—many of them related to Iran. Iran dominates our negotiations and discussions with our Gulf partners. And as long as they are doing what we ask on Iran, then we let them go on Yemen and on their commitments to the U.N. And that is not acceptable. Senator Young and I sent a letter to the Saudis, who have frankly been more intransient than the Emiratis on this question. I don’t know if it will work, because so long as they don’t feel like they’re getting real pressure from the highest levels of the administration—and I’m not saying that assistant secretaries and deputy assistant secretaries aren’t asking the Saudis and the Emiratis to put up the money. I’m saying they’re not hearing that from the president, and they’re not hearing that enough from the secretary of state. And this is now a matter of life and death in Yemen. And it’s a stain on our country’s conscience to be still involved in a military coalition with the Saudis and the Emiratis when they are refusing to put up money to stop the humanitarian disaster. TALEV: And your timing on forcing the vote, this next couple weeks or what? MURPHY: You know, I think it’ll be—it’ll be this—my hope is it’ll be this fall. So the next couple weeks, September/October. TALEV: Gentleman in the back. Q: Nadeem Yaqub, a journalist with Voice of America. Quick question. By trying to host Taliban and Afghan government at Camp David, do you think President Trump killed the opportunity to have a deal on Afghanistan? And related to that, second question, if the negotiations or the dialogue, you know, continues after the presidential elections in Afghanistan, do you think the Afghan government will have a more important and robust role in the negotiations? MURPHY: So, I mean, I have not opposed the idea of having negotiations and talks with the Taliban. Obviously I would prefer the Afghan government to be a part of those talks. I would prefer for them not to have to occur sequentially, in which a deal with the Taliban—between us and them was a prerequisite to the Taliban’s talks with the Afghan government. But I think we have to admit that the emperor has no clothes. I mean, the policy of the last eighteen years has simply not worked. And the idea that we should just do more of the same of the next eighteen years—be engaged in a military conflict with the Taliban, the perhaps permanent occupation of Afghanistan—I don’t think is acceptable to the people that I represent in Connecticut. But the way in which Trump decided to orchestrate the denouement of these talks was cataclysmic. I mean, why on Earth did this agreement have to signed at Camp David? What was the benefit of bringing the Taliban and the Afghan government to the United States? How would the agreement be more legitimate being signed on American soil than on Afghan soil? I mean, this made no sense, these Camp David talks, except for the fact that Trump’s foreign policy is essentially first, second, and third about photo ops. And this at least would have been a photo opportunity for the president. Now, I don’t think he thought it through very well, because he might have gotten the initial photo op and then two, or three, or four days later the talks would have embarrassingly fallen apart, perhaps leading to even more violence then we’re going to get now. But the instinct to have this conversation was not wrong. And I guess in my mind, I’m upset that the photo op and the bad idea to bring the parties to Camp David, has caused the talks, which may have actually happened in something positive for U.S. national security interests, to collapse. TALEV: I’m being told I have time for one more question, unless you change your mind and you want to run late for Senate for us. Right here in the front. Q: John Duke Anthony, a long-time consultant for DOJ and State. If you can just elaborate a bit more on this pushing allies away. And it’s obviously that you’re conflicted, many of us are conflicted about how far, how fast you push and press an ally, who snaps back and says: Look, if you think you can get a better friend than us, then you must be smoking something. If we held elections here, it’s practically guaranteed that we will be displaced or deluded. The Islamists will come to power. You’ll have a far more entrenched, vociferous adversary than you can imagine. So over the years it seems as though pushing, presenting democratic values, processes, dynamism is very much for us psychologically intelligible. But at the end of the day, politically expendable, because other interests seem to trump it at the final hour. This leaves us in a very sticky, illogical, embarrassing situation. I’d like to see you elaborate a bit more, if you would. MURPHY: Sure. Listen, I don’t—I don’t think it needs to be embarrassing to the United States that we continue to deal with countries that have not made a transformation into a democracy. Again, that’s why, you know, I approach democracy promotion as a value—or, excuse me—as an interest that stands aside with other interests. There may be nations in which there are other interests that we have that may cause us to put democracy promotion in the middle of the pack. Others where we may make it a higher priority. And so my argument here is not that we should not be dealing with nations that haven’t made a commitment to democracy. My argument is that it should be higher on our list. And second, that we should take a whole bunch of steps to try to make it easier for democracies to expand or flourish in these places, which is why I make the argument that pushing back against propaganda or pushing back against the development and export of tools out of China that make autocracy and dictatorship easier, is really important to the broader fight for democratic values. And then lastly, I think we have for a long time been addicted to our form of democracy, right? So you don’t have a democracy unless you have an American-style democracy, or whether you have a British-style democracy, right? If you don’t have a parliament, and you don’t have a prime minister, then you’re not engaged in self-determination. I think we need to be flexible about the mechanisms by which people have greater ability to have a say in the way that their lives are run. You know, take a look at some of the transitions that have been happening in Jordan, for instance, in which they do not have a democracy, by Western standards, but they have a parliamentary system that, you know, over time has had a little bit more to say about the way in which things are run. Local democracy is still democracy. There may be ways in which, you know, autocrats still have control at the federal level but that there are decisions being made with democratic inputs at the local level. And so I think we got to be flexible about sort of the demands we make to empower individuals to have greater say over their lives. We’ve got to have mechanisms to push back on the influences against democracy, not just beat our friends over the head to be better about it. And then we have to look at it as an interest that stands side-by-side with other interests. And sometimes exists here, and sometimes exists there. And then do it all in coordination with the Europeans. You know, if we’re not doing democracy promotion with the Europeans, we’re not doing it—we’re not doing it well. And, again, you know, Europe and the EU stands as a great attraction to countries that are trying to correct their—correct for democratic deficiencies. And as the European Union disintegrates, with help from the United States, it makes it a whole lot harder to, you know, go to the Turks and say, hey, listen, you know, you don’t have a future with Europe if you’re not going to fix the flaws in your democracy. Well, today they look at Europe and they say, well, it doesn’t look like the members that are inside the EU have much of a future with the EU, the way things are going. So why should we get our act straight to be part of that club? And so if we don’t invest in these multilateral institutions that are part of our leverage on developing democracies, then we’re also—we’re also not doing all that we can. So that’s a big answer, but there are all sorts of approaches that you can take to try to—to try to elevate these conversations. And of course, we’re going backwards on all of those counts in the Trump administration. If we just start to make some progress forward in the next administration, and we start to have some candidates that are thinking a little bit more about this before they get there, we’ll be better off. TALEV: You don’t have time for one more do you? MURPHY: We’ll do one more. All right. All right. You didn’t need to pressure me that much, but one more. TALEV: Oh, good! Else is going to be so happy. (Claps.) All right. Q: Thank you, Senator. Nice to see you again. Elise Labott from Georgetown University. I was wondering, in the context of some of the things you were saying on Iran and Saudi Arabia, you’ve been, you know, very tough about Saudi Arabia’s role. But at the same time, you see these kind of constellations happening in the—in the Gulf, and with Israel, Saudi Arabia working closer with Israel against Iran. President Obama, one of the reasons he reached out Iran and wanted, you know, to have more of a rapprochement is because he said that the thought that the Saudis and the Iranians needed to share the region. And I was wondering in the context of the last year or so, with Mohammad Bin Salman and the concerns about Saudi Arabia, how you view a kind of—you know, this landscape going forward. What is Iran’s role now? Qatar has been playing an increasing role. What is, in your mind, the ideal kind of situation of great powers in the region, including how to incorporate Israel? Thank you. MURPHY: You know, I think that Obama’s instinct here was twofold. One, he thought that by taking this question of Iran’s nuclear weapons program off the table we could more effectively organize the international community to address Iran’s other malevolent behavior in the region. We never got a chance to really test that proposition. Second, he believed that we were better off having a dialogue with Iran than not, and that you can’t solve the various quandaries of the region without America being able to talk to both the Gulf states and the Iranians. And Yemen is a perfect example, right? We could have absolutely—John Kerry came very close to a peace deal in Yemen right before he left office. And he did that only because he could talk to both the Iranians, and the Saudis, and the Emiratis. And had we kept up our ability to talk to the Iranians, we might have been able to get a settlement of accounts in Yemen long ago. And so our decision to not talk to the Iranians makes everything harder in the region—Syria, Lebanon, Yemen, et cetera, et cetera. So, you know, I—listen, I think the Iranians are horrible actors in the region. But I also think we’ve closed our eyes to all of the dangerous things that the Saudis and the Emiratis have done over the years to undermine our national security interests. I mean, the idea that we just sort of, you know, put blinders on when the Saudis for twenty years have been funding the export of Wahabism, which serves as the building block to the international extremist movement, is nuts to me. And Hezbollah’s terrible, but so are the Sunni extremist groups that might not exist but for the decision of the Saudis to move an intolerant version of Islam all around the world. We talk to the Saudis. Let’s talk to the Iranians. And if we went back to the Obama-era premise, isolate their non-nuclear bad behaviors, and still have the ability to talk to them, side by side with the Gulf states, we’d be much better off. TALEV: I want to thank all of you, and Senator Murphy, for spending extra time with us. Thank you. Appreciate it. MURPHY: Thank you, guys. Thank you, everybody. Thank you, Margaret. (Applause.) (END)
  • Saudi Arabia
    Saudi Arabia’s Oil Vision and the Oil Price Cycle
    Saudi Arabia’s oil industry is on the move with strategic changes in leadership, investments, and a broadening of its global businesses. The moves, which include larger investments in refining and petrochemicals as well as global natural gas, should help the kingdom weather the large changes coming in global energy markets. Studies show that integration across the petroleum value chain can enhance long range profits for large businesses like Saudi Aramco. Saudi Arabia has also focused efforts on reducing the swings of the oil price cycle through its leadership to broker production cut agreements between the Organization of Petroleum Exporting Countries (OPEC) and other major producers like Russia (OPEC plus). Speaking at the sidelines of a major energy gathering, Saudi Arabia’s new oil minister, Prince Abdul Aziz Bin Salman, whose long service in the highest ranks of the Saudi oil sector spans multiple oil boom and bust cycles, told reporters that the OPEC plus alliance “was staying for the long term.”  Even as Saudi Arabia positions itself for the future, current challenges to Saudi aspirations for a higher oil price remain thorny. Continuation of the U.S.-China trade war has raised fears of a recession in Asia, a major growth market for oil use. The Asian economic flu of 1998 ushered in a period of low oil prices. Prospects that more oil will be coming to markets from Iran is another headwind for oil prices. Deterioration of U.S.-China trade relations creates a disincentive for China to abide by U.S. sanctions against Iranian oil exports. French efforts to keep the Iranian nuclear deal afloat is another similar wildcard on the level of Iran’s oil exports. Iraq’s production is also at record levels and the United Arab Emirates is still moving ahead with its plans to increase its oil production capacity to 4 million b/d by the end of 2020. Limited OPEC spare oil production capacity is one factor that has underpins oil prices. Oil price edged higher earlier this summer amid Iranian attacks on shipping and oil installations in and around the Strait of Hormuz but ultimately concerns about a possible weakening in oil demand were attributed as a key variable acting to keep a lid on oil price levels. Markets are also still adjusting to the role U.S. tight oil plays in potentially shortening the oil price cycle. While the U.S. shale industry aggregated capitalization was battered in 2018 in the U.S. stock market, leading some to predict a slowdown in U.S. crude oil output growth, cost-cutting and automation is expected to turn the tide for many companies. Rystad Energy reported that the grouping of the 40 top dedicated U.S. shale companies achieved positive cash flow in the second quarter of 2019, indicating that dilemma OPEC faces in trying to underpin oil prices. The hedging practices of the shale industry also influences the oil cycle. As prices rise, shale producers have moved to lock in prices in futures markets, which in effect adds selling pressures in futures markets upticks. In a presentation to investors, for example, Occidental Petroleum revealed that it hedging program covered a sizable 300,000 b/d of production via a three way collar hedge structure for 2020 that included a short put at $45 (floor sold price), a long put at $55 (floor purchase price) and a short call (ceiling sold price) at $74.09 in addition to selling similarly priced call options in 2021. Non-OPEC production continued to be on the rise this summer, with sizable gains from Brazil and Norway. U.S. oil production is set to gain close to 1 million barrels a day in 2020. U.S. oil production including natural gas liquids was up almost 2 million barrels a day between June 2018 and June 2019. OPEC’s 2019 agreement was helped along by an extended contamination problem at Russia’s Druzhba crude oil pipeline and caused Russian production to hit a three-year low of 10.8 million barrels a day in July 2019. It remains to be seen what Russia’s position will be as its pact with OPEC comes due for renewal in early 2020. The state of U.S. oil production and the overall health of the global economy will likely be pivotal variables. Saudi Arabia’s Crown Prince Mohammed Bin Salman, the architect of Saudi oil policy, discussions with Russian President Vladimir Putin at the G-20 meetings in Osaka Japan lay the groundwork for the current OPEC plus production agreement. But the Russian leader has also expressed in the past satisfaction with current oil prices of $60 a barrel, a level in line with current prices.
  • Women and Women's Rights
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  • Religion
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    Play
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  • Sudan
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    Is OPEC China's Problem?
    The decision by the United States to wind down waivers on U.S. sanctions against Iranian oil exports has laid bare some new realities about oil geopolitics that were previously not well understood. Oil supply shortages --regardless of whether they are orchestrated by the Organization of Petroleum Exporting Countries (OPEC) or come about from sabotage of oil facilities or escalating military conflicts in the Middle East-- are more China’s problem than the United States’ worry. President Trump muddied the waters of that perception by simultaneously bragging about U.S. freedom molecules (e.g. U.S. oil and gas exports), but then constantly jawboning OPEC to keep oil supplies high. No doubt Americans care about gasoline prices and don’t stomach petro-blackmail well, but everyone from Iran’s Supreme Leader Ayatollah Ali Khamenei to Wall Street hedge fund strategists are focused on how President Trump cannot afford let U.S. gasoline prices rise in an election year, and they are missing the forest for the trees. It is the Chinese economy, not the U.S. economy, that stands to lose the most from oil supply cutoffs. China’s oil imports have been rising and hit over 10.6 million barrels a day in April as the country’s refiners built up stockpiles ahead of expected disruptions from Iran and Venezuela. That begs the geopolitical question: Who does Beijing consider a reliable energy supplier and can they afford to skip U.S. oil and gas exports? If you are President Trump, you are probably thinking the answer to the second part of that question is no, especially since you are cutting off supplies from Iran. To address the reliability issue, let’s take a tour of Chinese suppliers. Saudi Arabia has been quietly shifting oil from the United States, where imports from the desert kingdom are nearing low levels not seen since the mid-1980s, to China where it is now the largest supplier to the Asian giant. But China has to worry about Saudi production cuts as part of future OPEC agreements as well as attacks on Saudi oil infrastructure.   Igor Sechin, head of Rosneft, told the St. Petersburg International Economic Forum this week that China and Russia should increase their oil trade. The statement coincided with bilateral meetings between Russian President Vladimir Putin and Chinese leader Xi Jiping in Moscow.  But Chinese investments in Russian oil firms have run afoul in recent years and the massive contamination of oil supplies shipped via the Druzhba pipeline to Europe is raising questions about Russia’s reliability as an energy supplier. China’s $160 plus billion in investments in foreign oil fields to garner secure equity crude oil supply in rogue petro-states has not panned out well. Several oil states have defaulted on Chinese loans or failed to deliver the promised oil. Most recently, oil payments by Venezuela to cover its $60 billion in borrowing from Beijing has fallen by the wayside as the country’s oil production has collapsed. Prolonged civil wars in Sudan and South Sudan have severely restricted the amount of oil Chinese companies could extract. Now with U.S. sanctions, oil shipments from Iran are in question. Angola, another important Chinese supplier, could see its production plummet by a third in the next few years if it cannot shore up investment. All this puts more importance on other Middle East supplies, which could face increased geopolitical risk if the escalating conflict between Iran and Saudi Arabia leads to additional sabotage against Persian Gulf shipping and production. Iraq, Kuwait and the United Arab Emirates are major suppliers to China. When the trade war with the United States worsened last year, Chinese firms curtailed spot market purchases of U.S. crude oil. It remains to be seen what the long run ramifications of less transitory, more structural worsening of U.S.-China relations would mean for energy ties. Presumably, China would intuitively feel relying on U.S. oil supplies would be strategically risky. And then, there is just the worry that the Gulf of Mexico hurricane season or a rapid downward spiral in oil prices could mean U.S. oil exports levels suddenly sink. All this leads back to the main point. China, which has no real experience in jawboning OPEC for more supply because it was energy self-sufficient in 1973, and even in 1990 when Iraq invaded Kuwait, has not grappled yet with this new reality. To date, China’s complaints have focused on complaining about U.S. policies towards Iran. That belies the fact that China is freeriding off the U.S. President making statements about the need for adequate supplies from OPEC to keep the global economy from slowing down. Moreover, the United States is accommodating China by making those statements, even as Washington cuts off access to Iranian oil. That raises an important question: when (and in the future, if) Saudi Arabia and Russia fail to respond to U.S. appeals to put more oil in the global market, are they secretly, or at least inadvertently, attacking China? It is a question that bears asking in Beijing. Even if Russia and Saudi Arabia have offered China extra oil in recent weeks, if that oil is just coming from elsewhere in the market (e.g. commodity shuffling) and doesn’t reflect added barrels, as is currently the case, the bill could someday be sent to Chinese consumers in the form of higher oil prices and a shrinking trade surplus.
  • Saudi Arabia
    Oil Sabotage Might Seem Like Small Potatoes, But Underlying Geopolitical Problems Are Not
    The United States keeps signaling that it has hard power. Most recently, the United States made known that it was deploying additional ships, the USS Abraham Lincoln and USS Arlington, to the Middle East. The USS Abraham Lincoln is now said to be in the Red Sea. This deployment follows a similar U.S. movement in the South China Sea. There appears to be a lot of hard power on display these days since China and Russia have also been moving military assets around the globe in a similarly transparent, public manner. You would think that all this bravado of big military hardware would be minimizing risky actions by small players. But, ironically, all this symbolism isn’t achieving much where oil security is concerned. That’s because state and non-state actors alike have learned that “sabotage” is hard to react to. But just because these acts of sabotage to date have seemed minor, it doesn’t mean that they are not geopolitically significant. Taken en masse, they are a symptom of an increasingly unstable setting at a time when spare oil production capacity in and outside OPEC is quite limited. The point is that as tensions rise among large and mid-size global powers, the list of recent and unusual oil sabotage acts is growing, and they could eventually add up to a major problem for oil markets. First, there was the mysterious contamination of Russia crude shipments to Belarus. That “sabotage,” now reportedly under investigation by Russia’s Federal Security Service (FSB), will reduce the availability of the physical storage tanks for some refineries along the Druzhba pipeline since removing the tainted oil by slowly diluting it in small amounts into clean oil will take months. The explanation of corruption should give little comfort. If the Kremlin cannot control its local corruption problems, or if it so wanted to teach a lesson to Belarus that it was willing to disrupt the reputation of its own oil exports, or if some technical production and collection problem was hard to solve, it’s not good news for European oil consumers. The Russian problem was followed by this week’s “sabotage” in the Persian Gulf which seemed to traders similarly penny-ante. First, a handful of ships near the port of Fujairah appeared to be bashed in with a sharp object like a limpet mine or ramming by another vessel or weapon on Sunday. Oil traders joked on twitter that the attack was not aimed to be serious since it is hard to move oil prices on a Sunday. Still, the location of the attack was significant because the United Arab Emirates has been investing to capitalize on the port’s location outside the Strait of Hormuz to expand crude oil storage facilities. Fujairah is also the location Arab countries held floating storage of over 70 million barrels of crude oil back in the mid-2010s as a precaution against oil disruptions following Russia’s invasion of Ukraine and Iranian statements threatening to close the Strait of Hormuz. The head of Iran’s Parliament’s national security committee tweeted that that “explosions” of Fujairah showed that the security of the south of the Persian Gulf is “like glass.”  Initial rumors that Saudi oil tankers were on fire or that the Fujairah port was on fire turned out to be fake news. A day later on Monday, Saudi Arabia confirmed that a drone attack had damaged two pumping stations on its East-West pipeline that carries oil from large eastern Saudi oil fields to the kingdom’s west coast where it can be exported to circumvent the Strait of Hormuz. Saudi Arabia also has export-oriented refineries on its west coast that typically serve Europe and utilize crude oil shipments from the East-West pipeline. Saudi Aramco had recently announced plans to expand the East-West pipeline and keeps chemical drag reduction agents on hand at the pipeline that mean the pipeline could handle up to 6.5 million barrels per day (b/d) of exports of crude oil via the Red Sea in an emergency, thereby bypassing the Strait of Hormuz. Last year, over 2 million b/d of oil were sent along the pipeline as part of normal logistical operations. To date, the oil market has reacted with a relative yawn to all these various sabotage reports. But the breakdown in norms across the globe – whether those norms are the free and clear operations of sea lanes, respected guarantees of oil quality, or most importantly, the safety and security of citizens, workers and vital energy infrastructure inside national borders-- is bad news for an internationally traded commodity like oil. A typical trader response is that the U.S. trade war with China takes precedence over these small sabotage events, given that trade conflict’s long run potential to harm global economic growth. However, analysts say China may be willing to add to its stimulus plans at least for now and so far, few are predicting a U.S. recession any time soon. By contrast, oil analysts from Wall Street firms such as Cornerstone Macro and Citi caution that the number of recent geopolitical events with implications for oil markets are running unusually high. The idea that U.S. production exists as a safety net seems equally spurious, even under the best of circumstances. U.S. output growth in any given month faces real limitations. Optimistic predictions for the Permian Basin that it could someday reach 8 million b/d might be possible, but for now, U.S. crude oil production is less than 15 percent of total global supply. Trump administration officials hint that Washington is prepared to use the U.S. Strategic Petroleum Reserve (SPR) and Washington-watchers figure the White House might ultimately be slow to turn any screws intended to stop China from buying Iranian oil. But as internal pressures on a wide variety of petro-regimes from around the world mounts, it might become harder and harder to stave off an upward march for oil prices this summer as small scale “sabotage” takes its toll on oil facilities in multiple locations at the same time internal conflicts continue to loom in major producing countries like Venezuela and Libya. The White House shouldn’t take great comfort in the fact that oil traders are relaxed. They (and their algorithms) could be simply wrong.
  • Slovakia
    Women This Week: Slovakia's First Female President
    Welcome to “Women Around the World: This Week,” a series that highlights noteworthy news related to women and U.S. foreign policy. This week’s post, covering April 8 to April 14, was compiled by LaTreshia Hamilton and Rebecca Turkington.
  • Saudi Arabia
    The New Oil Darwinism
    It’s a geopolitical jungle out there in the oil world right now and only the fittest will survive. The new oil Darwinism is replacing the older thesis that all producers can succeed over time because the current lack of adequate capital investment is going to create an oil supply gap in the future that will once again boost oil prices (the so-called supply hole thesis). There are still some active looming supply crunch proponents who are talking down the potential of U.S. unconventional oil and gas, but recent announcements by ExxonMobil and Chevron about robust plans for U.S. onshore drilling appear to dispel the notion that a debt-ridden U.S. industry is on the verge of potential failure. Projected Permian oil production for the two American oil majors alone is 1.9 million barrels a day by 2024, on top of already robust output from U.S. independent oil companies. Citi estimates that U.S. oil production increases could fill most of the expected increase in oil demand for the next five years. That could leave OPEC in a bind, Citi suggests, since the producer group could lose up to three million b/d of market share to U.S. producers if it chooses to cut production to defend $65 oil prices, according to Citi estimates. The unexpected success of U.S. shale has - for the time being - been ameliorated by the dramatic demise of output from within OPEC’s ranks. A variety of ongoing problems from civil unrest to sector mismanagement have created supply disruptions from Nigeria, Libya, Algeria, Venezuela, and Iran, the latter two impacted additionally most recently by U.S. sanctions policy. The situation prompted one Middle East oil leader to note privately that OPEC’s stronger members will take market share from smaller, more troubled OPEC members whose sectors are continuing to stumble. In the past, OPEC’s largest producers Saudi Arabia, the United Arab Emirates, and Kuwait have stepped in to replace fellow OPEC member oil exports disrupted by sanctions or war. The process has often created acrimony inside the producer group, especially when new production sharing agreements are required when and if a disrupted producer’s oil output is restored. This time around is no different. Iran, whose oil exports have recently been curtailed by U.S. sanctions, threatened to quit the organization at OPEC’s end of year meeting last December in Vienna amid accusations that Saudi Arabia and Russia were taking advantage of its conflict with the United States. A last minute compromise, orchestrated by Russian energy minister Alexander Novak, salvaged the tense situation by promoting a compromise, which exempted Iran from the wider OPEC-Russian production cut agreement. In the longer run, cohesion might become more difficult for the current OPEC grouping as divisions arise between members whose industries are deteriorating and need sharply higher prices to offset declines and those who can cope with new competitive forces and still be able to expand. For the time being, OPEC’s larger members are trying to preserve the organization while at the same time, embarking on strategies to cope with future challenges. Abu Dhabi’s national oil company (ADNOC) is partnering with Western firms to apply new technologies to boost capacity to five million b/d by 2030 and is looking for refining assets abroad. Saudi Aramco is pursuing a sophisticated strategy that includes diversification into natural gas, petrochemicals and trading as well as making sure to keep its production costs low to extract as much revenue as possible from legacy assets. But beyond diversification strategies, officials from OPEC’s big guns - Saudi Arabia, Kuwait, UAE and Iraq - have such low cost production that they are assuming that they can be the last ones standing. But while it might be tempting among Middle East producers to forge a policy to wait for U.S. shale to peak and sputter out in the coming years, it is early days on drilling technology innovation with new ideas on how to tap improved data, automation, lasers and CO2 injection to improve recovery rates not only in the United States, but around the globe. All that technology might mean that pure geology (e.g. ultimate size of reserves) might not matter as much as stable access to capital as a new winning characteristic of the future Darwinian challenge in oil. Thus, in the new Darwinian oil world, we can expect to see continued announcements about how low the largest players can go on costs. ExxonMobil threw down the gauntlet recently by stating its next Texas Permian oil increment will come at price tag of $15 a barrel, substantially below break evens for some of the smaller U.S. companies operating in the Texas shale. It’s also well below the kind of oil prices needed for OPEC’s member fiscal budgets which require oil prices to range from at least $45 to as high as $80 a barrel, depending on the country. As a new report published by Council on Foreign Relations on the Tech Enabled Energy Future notes, the convergence of automation, artificial intelligence, advanced manufacturing and big data analytics is poised to remake the transportation, electricity, and manufacturing sectors in ways that could eliminate oil use just at the same moment when those same technologies could make it easier and cheaper to extract oil and gas. As digital energy technologies take hold, large oil producers will have to consider whether their reserves could depreciate in value over time if they delay oil production and development in an effort to hold up prices in the present and garner short-term revenues. This reality is adding to the challenges many oil producer governments already face from mounting budgetary stress, prompting widespread calls for energy sector reforms in a host of oil states around the world. In the new digital energy world, fittest is being redefined and access to the largest reserve base will no longer be the overwhelming metric for success. The winners and losers could prove surprising.
  • Energy and Environment
    “Perceptions” about Oil or Demand Realities?
    Amin Nasser, Chief Executive Officer of Saudi Aramco, whose shareholder is a sovereign nation, weighed in this week with a warning against U.S. and European activist shareholders who are making demands of the world’s largest publicly traded oil companies. Nasser told an industry audience in London that the oil industry faces a “crisis of perception” among its stakeholders that puts at risk its ability to supply energy to billions of customers around the world. In a speech to International Petroleum Week in London Tuesday, Nasser outlined “urgent, collective effort” the oil industry must take to counter the perceptions crisis. Such steps would include pushing back on narratives that oil is a bad financial investment because demand might peak soon and offering the development of cleaner fuels that respond to consumer concerns about environmental, social, and governance issues. The speech comes on the heels of an active proxy season in the United States and Europe where shareholders of the largest oil companies, whose stocks are publicly traded, have asked the firms for transparent reporting on  how they will reduce the carbon footprint of their products and operations in line with the 2 degrees Celsius Paris climate accord goals, including setting concrete short, medium and long term targets for reductions. ExxonMobil has formally asked the U.S. regulatory agency, the Securities and Exchange Commission (SEC), to reject the shareholders efforts to bring the resolution to a vote at ExxonMobil’s annual meeting in May. Royal Dutch Shell has already adjusted its strategies to reflect similar requests and will link future executive pay to emissions reductions achievements. The company announced recently that it was buying German residential solar battery maker Sonnen and investing in electric vehicle charging stations in Europe in addition to its hydrogen fuel business in Germany. BP is also moving into the EV charging business, and has agreed to demonstrate how its business will align with Paris climate goals including executive remuneration based on emissions reductions. Chevron’s shareholders are asking for information on the company’s strategic vision and response to climate change risks and opportunities. Goldman Sachs is under pressure from activists this year to reduce the carbon footprint of its loan and investment portfolios. France’s Total whose stock performance has outpaced others in the last year, tweeted today that “It’s not about putting a green paint on @Total’s logo but a real evolution of our energy mix”, projecting that the company will hit 10 to 20 percent low carbon electricity by 2040 on top of 45 to 55 percent natural gas, leaving liquid fuels (oil and biofuels) at only about a third of the company’s product mix by 2040. The oil industry has trendlines to point to in its narrative that oil is hard to move away from. Global oil use climbed 1.3 million barrels a day in 2018, according to the International Energy Agency, amid stronger oil use in China and India. IEA projects similar growth for 2019. China’s oil use rose by 440,000 b/d last year, despite a 17 percent decline in car purchases. More surprising was higher U.S. oil use, which topped 540,000 b/d in growth last year as the American economy expanded. New academic studies reveal that economic expansion is once again linking to a rise in U.S. vehicle miles traveled (VMT) since 2012, dispelling the notion that millennials might drive less. U.S. Federal Reserve Bank economists are finding that millennials have the same consumption preferences as past generations, including interest in buying cars, but are less well off than members of previous generations. Some U.S. cities are also finding that use of ride hailing services can potentially increase VMT, rather than lowering it. These latest trends suggest that wild predictions that global oil demand would peak by 2020 will likely be off the mark. Still, the possibility that oil demand will plateau or even decline in the long run cannot be dismissed out of hand. That’s because in multiple sectors – across vehicles, manufacturing, freight and even plastics – digital technologies are transforming the way things are made, shipped and used, with large disruptions to current use patterns possible. Last summer, Citi published a report suggesting countries across the globe are beginning to strengthen restrictions on single use plastics, noting that China’s decision to stop imports of plastic waste last year. “With China no longer importing plastic waste and other countries unable to absorb the high level of supply, exporters will likely be forced to expand on domestic recycling infrastructure and/or cut back on the level of waste being produced,” Citi noted in its report. McKinsey & Co. estimates that recycling and substitution of biomaterials could shave 2.5 million b/d off rising oil demand for plastics manufacturing by 2035 and that 60 percent of plastics used by 2050 could come from production based on previously used plastic. Changes in global trade and freight practices could also substantially lower oil use in the future. In its “Less Globalization” scenario, BP projects that the rise in global economic expansion would lag about 6 percent, compared with a business as usual projection for 2040, translating into about a 2 percent loss of oil demand, if tariff wars and rising populism were to continue to dent global trade. That estimate for a minimal effect on oil use could prove optimistic, since next generation manufacturing technologies, increased use of optimization programs for logistics, increased use of alternative fuels in trucks and delivery vehicles and rising protectionism for jobs could mean bring much larger changes in oil use for aviation, shipping and on-road freight. Our modeling, in partnership with University of California Davis researchers, indicates that there are still many policy levers that could change the trajectory for oil use in transportation. We found, for example, that the possibility that proposed bans on new sales of internal combustion engine cars by 2040, mooted in Europe and even discussed in China and India, could shave 5 million b/d from future oil demand, if implemented broadly. In one scenario, utilizing the International Energy Agency’s mobility model, we defined the parameters of an internal combustion engine (ICE) sales ban policy as one where non-plugin, ICE-powered new vehicle sales go to zero in Europe, China, India and California by 2040. Plug-in hybrids are assumed to be exempt from the sales ban, as well as commercial freight vehicles, emergency vehicles, and 2/3 wheelers. Closing geo-fenced areas of major global cities to gasoline-powered cars, potentially in favor of electric vehicle ride sharing or greater use of public transit, could double this effect, our research concludes. New policies that promote use of alternative fuels for buses and in on-road trucking, a policy already underway in China, would also curb growth in oil use significantly. The bottom line is that a combination of rapid technological disruption and shifting geopolitics has the potential to adjust the trajectory for oil demand, potentially downwards, but also, without strong policy intervention, possibly upwards. That is creating great uncertainty for investment in the oil sector. Historically, investors have favored oil company shares and oil commodity financial derivatives because they felt that the sector would face future scarcity of both produced supplies and physical reserves. This view of peak oil supply propelled billions of dollars in capital investment in search of new reserves. Oil company reserve replacement was highly valued and rewarded. Now this presumption that oil demand could only flow one way – upward – is more uncertain and notions of long run oil scarcity look more doubtful as the industry unlocks the technical ability to produce more oil and gas from “source” rock, rather than from large already discovered reservoirs. These two new realities are not fantastical “perceptions.” They are the outcome of new uncertainties created by rapidly accelerating changes in technology. As shareholders pressure international oil companies (IOCs), they are increasingly positioning themselves to respond. A recent Wood Mackensie consultants report suggests that renewables could represent one fifth of total capital allocation for the major oil companies most active in the alternatives sector after 2030. That should be a cautionary note for national oil companies (NOCs) thinking that the oil majors can be the financing backup plan if their own attempts to expand (or possibly just to maintain) oil production capacity fail in the next few years. Increasingly, the majors will judge possible long-range mega-projects with a tougher eye, now that booking large reserves is not currently rewarded as it once was by Wall Street. That could create future difficulties for countries like Venezuela that are counting on foreign direct investment to bail it out of mismanagement of its oil sector. Thus, Mr. Nasser may be correct. Oil supply could prove volatile in the coming years (or even in the next few months) as national oil companies face increasing problems. But that problem won’t likely be tied to misperceptions by the shareholders of the IOCs. It is more likely to be related to how Saudi Aramco and its peers manage their current revenues and future investments.
  • Saudi Arabia
    What to Do About Saudi Arabia
    Play
    In the wake of recent geopolitical and economic upheavals in Saudi Arabia, please join our panelists as they discuss how U.S.-Saudi relations should move forward, as well as what Saudi Arabia's future means for the greater Middle East and its Western allies. 
  • Russia
    How Will the U.S. Respond to Russia-OPEC Cooperation?
    Congress is considering a bill that could punish countries for artificially boosting oil prices. What could that mean for warming ties between Russia and Saudi Arabia?