Why Saudi Arabia Will Never Let Oil Hit $200
The Real Reason Saudi Arabia Will Always Side With America
Eleven men sit around a table deciding the price of oil for the entire world. Ten of them want to raise it. One walks out, flies home to talk to his king, comes back eight hours later, and quietly torpedoes the whole thing.
That moment is why the Middle East looks the way it does today.
This isn't really a story about diplomacy or alliances. It's a story about the math underneath all of it — what it actually costs Saudi Arabia to pull a barrel of oil out of the ground (*$3*), what Iran needed to sell it for to keep their economy from collapsing (*$19*), and the one thing that genuinely terrifies a petrostate: not low prices, but prices so high the world finds a replacement and stops needing you at all.
In this one we get into:
— Why the Ghawar oil field is basically cheating, and how Saudi Arabia gets 10,000 barrels out of a well using the same electricity it takes Texas to get 500
— What a "fiscal breakeven" price actually is, and why $40 oil is fine for some countries and a death sentence for others
— How the Stevenson Plan killed the British rubber monopoly in the 1920s, and why every Saudi oil minister since has been quietly haunted by it
— Why Saudi Arabia did to American shale in 2016 what they did to Iran in 1976 — and what that reveals about who the kingdom is actually loyal to
The short version: Saudi Arabia doesn't pick friends. It picks self-interest. Sometimes that lines up with America. Sometimes it doesn't. The oil math explains all of it.
#Maxinomics #Oil #SaudiArabia #Iran #OPEC #Geopolitics #Economics
00:38 Breakeven Oil
03:05 The Day Saudi Arabia Betrayed Iran
04:47 Petrostates
09:53 The Rubber Lesson
11:29 Oil Per Person
14:01 Is It America's Fault?
15:02 Footnotes
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