International Relations

The Oil Illusion

NRO has a great piece on why
the threat of an Arab oil embargo is an empty one
. The Arab nations need to
sell their oil more than we need to buy it. About a quarter of our oil supply comes
from Arab nations, while nearly all of the Arab nations survive off of oil revenues.
We can make up the loss in oil through domestic drilling and shifting sources. The
Arab nations can’t make up the loss in revenue from a boycott of the US. The
endgame of all this is that the Arab states have no leverage. They can complain
all they want about our support of Israel or our ousting of Saddam – but we needn’t,
nor should we, listen.