Abdel Majid Farid - Oil and Security in the Arabian Gulf

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ROUTLEDGE LIBRARY EDITIONS:
WAR AND SECURITY IN THE MIDDLE EAST

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Volume 8

OIL AND SECURITY IN THE
ARABIAN GULF

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OIL AND SECURITY IN THE
ARABIAN GULF

Edited by
ABDEL MAJID FARID

First published in 1981 by Croom Helm Ltd

This edition first published in 2017 by Routledge

2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

and by Routledge

52 Vanderbilt Avenue, New York, NY 1001

Routledge is an imprint of the Taylor & Francis Group, an informa business

1981 Arab Research Centre

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-138-19428-1 (Set)

ISBN: 978-1-315-54183-9 (Set) (ebk)

ISBN: 978-1-138-65775-5 (Volume 8) (hbk)

Publishers Note

The publisher has gone to great lengths to ensure the quality of this reprint but points out that some imperfections in the original copies may be apparent.

Disclaimer

The publisher has made every effort to trace copyright holders and would welcome correspondence from those they have been unable to trace.

1981 Arab Research Centre

Croom Helm Ltd, Provident House, Burrell Row,

Beckenham, Kent BR3 1AT

Reprinted 1983

British Library Cataloguing in Publication Data

Oil and security in the Arabian Gulf.

1. Persian Gulf states National security

2. Persian Gulf states Foreign relations

I. Farid, Abdel Majid

II. Arab Research Centre

327.536UA653.P/

ISBN 0-7099-0507-6

Printed and bound in Great Britain by
Professional Books, Abingdon, Oxon

Contents

Sheikh A. Al-Tariki

Fred Halliday

Robert J. Hanks

Area Ruben N. Andreasyan

Robert Pranger

James E. A kins

Ahmed Baha El-Din

Douglas Hurd

Michael Field

Michel Jobert

Pierre Desprairies

Indu Prakash Singh

Tim Niblock

Mohammad El-Rumaihi

Conclusion: Analysis of Policy Implications
The Arab Research Centre

Abdel Majid Farid

The issue of security in the Arab Gulf has an importance which goes beyond the regional location of the area. It is enough to note that instability in the area may result in the interruption of oil supplies to other parts of the world. Hence, it may have grave economic consequences and bring about the danger of global war. The security question has been intensified because of the position occupied by the area as regards oil production. It can never be ignored that the oil produced in the Gulf area represents two-thirds of OPEC production and half the quantity on sale in the world market. It also provides Japan with about 80 per cent of its oil needs, and around 65 and 15 per cent respectively of those of Western Europe and America. Not to mention that the oil reserves in this area amount to 70 per cent of the worlds total. In other words, the existence of oil thus increases the importance of the area, which must remain, for a long time, a cockpit of events.

It is expected that the 1980s will bring about many changes that will make their mark on the area. Some events have prepared the scene for such developments. The fall of the Shah and the proclamation of the Islamic Republic in Iran, the Soviet presence in Afghanistan, the formation of an American task force to intervene in the area, the failure of the Camp David agreement and the outcome of the Iraq-Iran war are among them.

The international Symposium on Oil and Security in the Arab Gulf organised by the Arab Research Centre on 1 to 2 October 1980 has stressed the importance of the area. It has proved a successful step in the work of the ARC and demonstrates a genuine interest in and attempt to deal with developments in the Arab world.

Academics, strategists, oil experts and politicians representing various Arab and international interests were present at the Symposium. As well as from the Arab world, the participants came from the United States, the Soviet Union, Britain, France and India. No Iranian specialist was available to participate in the work of the Symposium. Mr Fred Halliday, the expert in Iranian affairs, undertook to present an analysis of the internal situation in Iran and the Iranian point of view on oil and security in the Arab Gulf.

The programme of the Symposium took into consideration the views of all interested parties vis--vis the question of oil and security in the Arab Gulf. The policies of the US in the area are opposed to those of the USSR. British policy goes along with the general Western policy led by the US. On the other hand, France advocates more independent policies and, to some extent, challenges the general framework of Western policy. The interests of the Third World were represented by a speaker from India. India has traditionally played a major part in the non-aligned movement and is often the voice of the Third World in economic matters.

The attitudes of the Arab parties on the question of oil and security were given fair treatment in two papers, put forward through discussion, and were the necessary background to the whole scene.

Producers and Consumers

The Arab oil producers cannot help feeling victimised and intimidated by the oil consumers and the West in general. In the words of the former Oil Minister in Saudi Arabia, Sheikh Abdullah Al-Tariki: Tn the past, oil companies posted the price they wished to pay [and were] cheating Now we are accused of setting the price too high, trying to wreck Western civilisation and attempting to destroy Third World countries The Arab world has been accused of greed while trying to come to an agreement with the West. Cooperation with the West is a key issue in Tarikis paper. He states that Arabs may have a lot of money, perhaps, but we are not rich We are not interested in profits. We prefer development. Thus the Arabs are in need of Western expertise and technology. To settle the differences between the Arab world and the West, Sheikh Tariki is convinced that a formula like the one OPEC is now proposing to fix the price of oil is beneficial to everybody.

It is possible for the consumers to adopt such a formula, perhaps with some modifications. In his paper, Mr Douglas Hurd expresses his confidence that the interests of the Gulf states coincide with those of Britain and the West. However, he looks at such a coincidence of interests in a different way, stating that oil producers and oil consumers alike wish to see the uninterrupted flow of oil. Britain is interested in strong economic and commercial links. Mr Hurd also welcomes the investment of Gulf funds in the Western economies.

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