U. S was sustained through the 3 major oil crises that happened in 1973 and 1980 (Iranian War) and after the Gulf War in 1991, where the prices of petroleum products increased very high. 75 to 80% of imports from OPEC stabilized the situation during 1970s and 1980s Now the share of OPEC is dropped to 55% replaced by new suppliers like Mexico, Venezuela, Canada and Nigeria. Saudi oil exports were major to U. S in 2000 but slowly dominated recently by Canada as shown in the following figure. Source taken from http://www. data360. org/dsg.
aspx? Data_Set_Group_Id=627> Though the Total US Gross Oil Imports increase from 1991-204, the U. S oil exports from Saudi Arabia have declined during the timeline, which is shown in the following two figures. Source taken from http://eurota. blogspot. com/ Source taken from http://eurota. blogspot. com/ Source taken from http://eurota. blogspot. com/ Saudi oil is trusted and recommended to U. S. allies and the spread is across the most countries from Asia, Pacific regions, Indian subcontinent, and the Eastern and Southern African regions.
Saudi oil many times proved as an insurance instrument in protecting the American and global economies. Saudi’s oil policies in the international market saves hundreds of billions of dollars of economic costs during the times of crisis. The supply shortfalls caused by others are easily handled by the oil reserves of Saudi. that would have resulted had they not intervened to compensate for oil supply shortfalls caused by others. The monthly U. S. Crude oil and Petroleum products from Saudi Arabia are keeping its pace from 1994 to till date, as depicted in the following figure.
Irrespective of the attacks faced from the Saudi nations, Saudi Arabia's oil stands vital to the economic status of United States and its allies. However, the oil prices keeps the economy of the Saudi in fluctuation. When ever oil prices are high, income comes in and expenses increase. And when oil prices go down the government and the private traders run into cash lack and limp for capital investments. Non-Oil Saudi Exports Though small, the Saudi non-oil exports to the United States average to $0. 5-1. 0 billion per year and are constantly growing.
Saudi Arabia, keeps it important to grow these non-oil exports to American companies and investors. Saudi invested more than 30 years in developing the non-oil industries and exports. These categories include petrochemicals like- fertilizers, fibers and plastics and other non petroleum manufacturers. The traditional trading networks like Hajj to Africa, Asia and to some of the European countries. Some of the products from Saudi like- pop top can lids, air conditions, fabrication materials and other plastic materials are already in growth in terms of exports.