The REAL Reason for Saudi Arabia’s Shift Away from U.S.

China Has Just Surpassed the U.S. As World’s Largest Importer of Oil

Saudi Arabia has warned of a shift away from the U.S.

Here’s the real reason: China just dethroned the U.S. as the world’s largest importer of oil.

As Oil Price notes:

Last month the world witnessed a paradigm shift: China surpassed the United States as the world’s largest consumer of foreign oil, importing 6.3 million barrels per day compared to the United States’ 6.24 million. This trend is likely to continue and this gap is likely to grow, according to the EIA’s October short-term energy outlook. Wood Mackenzie, a leading global energy consultancy, echoed this prediction, estimating Chinese oil imports will rise to 9.2 million barrels per day (70% of total demand) by 2020.

World Liquid Fuels Consumption

Forget Syria, Iran and Bahrain … the stated reasons for the Saudi shift.

Those are all real … but the much bigger driver is oil. Indeed, most geopolitical policy is based upon oil (and here) and gas.

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  • jadan

    What does it profiteth the wiley Chinee to become the world’s largest importer of foreign oil if they are unable to breath their own air? I don’t know why they don’t all have lung cancer, bronchitis, or persistent hacking cough. They all smoke and they breath that toxic fog they call air.

  • Ian56

    Don’t forget that Chins is in a joint venture to build a massive new refining and export facility in Saudi.

    Saudi has trouble exporting more of it’s heavy, high sulfur oil because of the lack of global refining capacity for this type of oil.

    The joint venture is intended to address this issue and allow more oil to be exported to China.

    • Veri1138

      As for the high sulfur oil, it stands in a class with Anwar and Keystone XL. The oil is prohibited from being used in The West. Unless you like wearing a gas mask just to breathe. Such oil is used mainly in countries that lack environmental and health protections.

  • Ian56

    America is now nett energy neutral.

    It still imports 6m barrels of oil a day but has an excess of natural gas.

    An export facility for natural gas is being built in Texas in a joint venture with Qatar.
    The gas is to be exported to Europe.

    America is expected to produce large surpluses of carbon based energy in the future as production of natural gas increases.

    America is already the largest producer of oil in the world, having just surpassed Saudi Arabia and is still increasing production.

    Kind of puts the Neocon wars over “natural resources” into perspective (sic).

    • fuqdisqus

      It’s not about natural resources such as oil for use. It’s about the sick freaks of US empire trying to control the world.

      • Veri1138

        Using the Petro-dollar. Saudi Arabia is key to OPEC staying on the dollar regime.

    • helen

      Russia is the biggest oil producer, not Saudi or United Stasi of America!

    • Lucretius Carus

      “But the Cupboard Was Dry… US Energy independence sounds good Too bad it’s not going to happen. Here’s a current factoid: The EIA reports that the latest 4-week average for US production of oil (crude + condensate; which is the definition of oil) was 7.6 million barrels a day, while refinery runs used 15.8 million barrels daily. The 8.2 million barrel a day difference is made up of imports. Shale oil is not the salvation: in order for shale to simply maintain the current level of crude oil production – half our needs – the country woud require the equivalent of 10 new Bakken plays over the next ten years. And there are not 10 more to be had. Data for natural gas is even weaker. Half-a-glass is only full in very dim light.” h/t CK Michaelson of Some Assembly Required.

      We are IMO on the (hopefully) long, downward slope of Hubbert’s Curve, despite the propaganda asserting otherwise.

  • SnuffAGlobalist

    I really have trouble believing this explanation for the Saudi action. There is much more to this than oil. While oil is a factor in the wars of terror spawned by the globalist bought US government, there is more here than is now being revealed in the above story. Note that I didn’t say “bought and paid for government”, because the globalists, while they have bought off our government, actually pay for nothing, we the citizens are paying for these wars of terror on the people of the Middle East, Africa, and the globalist war against us,

    Saudi Arabia is in an intense relationship with Israel. In fact, the Israelis have a military base in Tabuk, in northwestern Saudi Arabia. The Israelis and the Saudis have a signed agreement to arm and fund the terrorists in Syria, that the globalist controlled US press call “rebels.”

    Just recently, the Israelis have strengthened that relationship with Saudi Arabia, as the story that they were moving away from the US broke this week. Supposedly, it is due to US policy toward Iran. That story, I believe to be false.

    Iran, with the second largest population of Jews in the Middle East, is an embarrassment to Israel, because the Iranian Jews refused a recent offer by Israel of up to $10,000 each, to move to Israel. The Iranian Jews cited the fact that they are IRANIAN, and that they are proud of their Iranian Jewish heritage.

    Saudi Arabia is a tool of the globalists, who also run the US, AND the oil game, so, there is some other reason for this story of Saudi Arabia moving toward China, than merely oil.

  • SnuffAGlobalist

    Perhaps the Saudi questionable “move toward China”, is a tactic developed by the recent meeting of several of the dictator states in the region of the Gulf with Israel in an effort to pressure Congress to go to war with Iran.

    “Oh, NO, Saudi Arabia is going to be friends with China, we can’t let them to that.. let’s go to war with Iran so that Israel and Saudi Arabia will like us again….” sic.

    From Debka…

    “Israel and Saudi Arabia are coordinating policies to counter US détente with Iran ”

    DEBKAfile Special Report October 2, 2013, 9:15 PM (IDT)

    “Associates of Prime Minister Binyamin Netanyahu Wednesday, Oct. 2,
    leaked word to the media that high-ranking Gulf emirate officials had
    recently visited Israel, signaling a further widening in the rift
    between Israel and President Barack Obama over his outreach to Tehran.
    These visits were in line with the ongoing exchanges Israel was holding
    with Saudi and Gulf representatives to align their actions for
    offsetting any potential American easing-up on Iran’s nuclear program.
    reports that this is the first time Israel official sources have
    publicly aired diplomatic contacts of this kind in the region. They also
    reveal that Israel, Saudi Arabia and the Gulf emirates have agreed to
    synchronize their lobbying efforts in the US Congress to vote down the
    Obama administration’s moves on Iran.”

    http://www.debka.com/article/23323/

  • Ellis

    This is like a squabble inside the family that has to do with the U.S. opening up talks with Iran. First of all, Saudi Arabia and Iran are competitors, and so Saudi Arabia wants to make sure that it gets something for the U.S. tilt, assurances that it won’t lose too much political influence in the region to Iran, if U.S.-Iranian relations are regularized. Second, there will be more Iranian oil and gas on world markets — so Saudi Arabia wants to make sure that it doesn’t lose profits.

  • EarlyMedievalSerf

    Quite frankly I’ve always questioned the need for the United States to maintain a good relationship with the Wahhabi fanatic Saudi kingdom. It’s one of those things where ‘we’ve always done it this way so let’s keep doing it’ and no one ever questions why. Sure we have some bases there, but we have bases everywhere. Saudi has always overstated its oil reserves and they’re loyalty seems two-faced. Iran is no better and the US holds long grudges so don’t expect the Iran-US situation to all of the sudden normalize. It’s been 50 or 60 years since the Cuban missile crisis and here we are still punishing Cuba, few of whom (except for Castro) were even alive at the time of the Crisis.

    • Veri1138

      The economic ruling class in the US has a long memory. And they still want their sh*t back from Cuba.

  • EarlyMedievalSerf

    Quite frankly I’ve always questioned the need for the United States to maintain a good relationship with the Wahhabi fanatic Saudi kingdom. It’s one of those things where ‘we’ve always done it this way so let’s keep doing it’ and no one ever questions why. Sure we have some bases there, but we have bases everywhere. Saudi has always overstated its oil reserves and they’re loyalty seems two-faced. Iran is no better and the US holds long grudges so don’t expect the Iran-US situation to all of the sudden normalize. It’s been 50 or 60 years since the Cuban missile crisis and here we are still punishing Cuba, few of whom (except for Castro) were even alive at the time of the Crisis.

  • EarlyMedievalSerf

    “Sadara Chemical Co., a venture of Dow and
    Saudi Arabian Oil Co., is due to start production at a $19.3
    billion complex in Saudi Arabia in the second half of 2015.”

    Interesting…..and apropos.

    http://www.bloomberg.com/news/2013-10-24/dow-chemical-earnings-miss-estimates-after-decline-at-epoxy-unit.html

  • Manofsteel11

    Of course, this is ‘a little’ more complex than a Saudi shift toward oil export to China.

    1. This is about US vs. China long-term struggle to reset the petrodollar regime/US debt/Chinese currency global economic dominance.
    The Saudis are trying to maneuver in this context to ensure they
    a) keep their regime in place
    b) counter balance regional powers
    c) maximize economic interests

    2. Oil is but one element in the economic equation. And, it is not a sudden new development.
    a)The Saudis have been exporting most of their oil to the Far East for many many years.
    b) The Saudis traditionally exported some 15% of their oil to the US each year.
    That is, until recently, when the US shifted its(!) strategy and ramped up its domestic energy production.
    At the same time, China (naturally) moved in.
    c) The Saudis used to get some 15% of their imports from the US, but since the early 2000s this has changes, with China becoming a dominant exporter to the Kingdom.

    3. The US used its military presence and weapons exports to ensure the Saudi royal family that they will remain in power. However, the Saudi elite is observing with concern a shift in US policies per the withdrawal from Iraq, US public diplomacy during the revolution in Egypt, the lack of US intervention in Syria, Bahrain and its stance vis-a-vis the Ayatollahs in Iran.
    No US bases or weapons shipments will make the Saudis blindly believe that the US will ensure the future of the Kingdom if Iran is allowed to intervene in the region and acquire nuclear capabilities.
    Security and economic interests are inherently intertwined.

    4. Proved reserves, production and refinery capacity have all be relatively flat since the mid/late 80s. Therefore, while EIA’s projections seem to indicate an up trend, we are yet to witness a big change in trend upwards, even if the Chinese are cooperating with the Saudis to revamp their infrastructure, as we know the Saudis are expanding their investments into other less traditional export areas beyond oil.

    • robertsgt40

      Correct. I’m also guessing the Saudis are seeing a pile of gold worth more than a pile of paper.

  • 80on40

    The pivot to check China’s asiatic growth, which is known as Oceania geographically,

    occurred strategically: much like U.S. and the west kissing up to the Saudis to counter

    nazism is their quest for petroleum during FDR’s time, we are now placing our killing

    machinery in such a way as to correctly reflect the fascist character U.S. has become.

    • Veri1138

      Not quite. The pivot, again, can be viewed as an attempt by the US to imply a threat to attack China if the Saudis shift away from the petro-dollar. If China’s industrial capacity to use oil is destroyed, or the shipments of oil from the ME to China are disrupted…

      The US retakes the number one spot. The PetroDollar remains.

      • helen

        That’s when you have your nuclear war! The Chinese are ready for that now!

  • Veri1138

    When the Saudis accelerate their divestiture of petro-dollars, then game-on.

    Coupled with the recent inability of the US to assist in deposing non-friendly regimes for Saudi Arabia.

    The US military pivot towards Asia-Pacific and a disastrous AirSea Battle strategy (read the thing, it is full of buzzwords and little to no substance. How the Pentagon can consider this a serious strategy is beyond any serious military planner). With the pivot, the US now threatens Saudi’s new Best Friend, China.

    The military pivot toward China could be viewed in the context of threatening Saudi Arabia by implying an attack on China. This is PetroWars to preserve the PetroDollar.

    The dollar would be fine as a world reserve currency. However, such developments above and in many posts below illustrate that a very few would stand to lose wealth and power and control if the dollar were truly globalised.

    A world dollar, in which the dollar is the acknowledged world reserve currency, not controlled by The Fed – might even disappear the entire national debt of the US as the dollar would be freely used the only international currency.

    And The Fed and their cronies would not like that very much.

  • Joe

    If the US petrodollar link falls, I don’t think any country will follow US to act as a military servant for the Saudi. China is definitely not interested to use force.

    • lol

      egypt and pakistan will step in to fill that role

  • Shona

    T R U S T Y O U R G O V E R N M E N T. N O T H I N G T O T H I N K A B O U T H E R E.

  • Martin1

    Well, it’s quite simple: the 19th century was British,
    the 20th century was American,
    and the 21st is the Chinese century.
    Just accept this fact.