The Importance of Saudi Arabia to the US Economy
Saudi Arabia plays an incredibly important role in the economy of the United State, largely because of its position as one of the most influential members of OPEC, the group, which is formed of the countries which are net exporters of oil. Saudi Arabia has huge oil reserves and it is currently the country with the best capacity for increasing or decreasing its oil production in response to changes in oil prices and demand.
The US economy is highly dependent on oil, relying on oil for about 40 percent of its energy production and 97 percent of its vehicle fuel, as well as for the supply of the petrochemicals that are used by many manufacturing industries. Although the United States does produce some of its own oil, it has to import approximately two thirds of the oil that is uses. This means that it is very dependent on the oil producing nations, particularly the OPEC countries and Saudi Arabia. Saudi Arabia has a significant impact on the global oil and petrochemicals industry, which means that it can therefore have a potentially significant influence on the economy of the United States. About 13 percent of the oil that is imported into the US every year, over 100 million barrels a day, comes from Saudi Arabia. This is a significant amount, but Saudi Arabia, as a key player in OPEC, also has an indirect influence on the US, economy through its influence on the other sources of US oil imports.
The United States, with its economy that is dependent on oil, is an important export market for Saudi Arabia, which has an economy that is dominated by oil production. The United States is the largest export market for Saudi Arabia. Meanwhile, Saudi Arabia is one of the largest markets in the Middle East for exports from the United States. Saudi Arabia is also an important market for US exports, with many commercial and manufactured products made in the United States being exported to Saudi Arabia. Saudi Arabia is a particularly important market for the defense sector in the United States, with a lot of US made equipment being exported to Saudi Arabia.
The United States has a very special relationship with Saudi Arabia. This is largely based upon the importance of the trade of oil and other goods for both countries, but Saudi Arabia has also been courted by the United States due to its strategic location and importance in the Middle East. The good relationship between the US and Saudi Arabia, and the influence of Saudi Arabia on the stability of its region, is very important for the US politically as well as economically, and this political side to the relationship also has economic effects in the US, by ensuring a reliable source of Arab oil into the United States and by helping to make it possible for the US to trade with other Arab countries.
The arabamericangiving.org website is a good place to find out more about the importance of the Arab world for the economy of the United States, including information about the relationship between the US and other Arab countries.