29 Apr 2011:
Gulf Nations’ Social Policies
Playing Role in Oil Price Rises, Report Says
The generous social benefits being doled out by Saudi Arabia and other oil-rich Persian Gulf nations are contributing to high oil prices
, according to a report by the energy advisory firm, PFC Energy. The report said that populist spending programs, which have recently become even more generous in an effort to ward off the social unrest that has swept much of the Middle East, are forcing some Arab OPEC countries to keep oil prices high to pay for generous social policies. Such policies include high government salaries, direct payments to citizens, “payoffs” to the religious establishment, housing allowances, and large subsidies to keep gasoline prices low. “Today’s high oil prices facilitate the financing of the expansive spending packages that [Saudi] King Abdullah has recently announced to prevent outbreaks of popular unrest within the country,” said the report, prepared for the firm’s private clients. PFC Energy also citied the countries of the United Arab Emirates as funding growing social largesse with oil revenues. The report said increases in government spending among OPEC countries makes it unlikely that the oil cartel will allow oil prices to dip below $90 per barrel in the future.
Yale Environment 360 is
a publication of the
Yale School of Forestry
& Environmental Studies
Yale Environment 360
articles are now available in Spanish and Portuguese on Universia
, the online educational network. Visit the site.
Business & Innovation
Policy & Politics
Pollution & Health
Science & Technology
Antarctica and the Arctic
Central & South America
Tribal people and ranchers join together to stop a project that would haul coal across their Montana land. Watch the video.
is now available for mobile devices at e360.yale.edu/mobile
An aerial view of why Europe’s per capita carbon emissions are less than 50 percent of those in the U.S. View the photos.
Ugandan scientists monitor the impact of climate change on one of Africa’s most diverse forests and its extraordinary wildlife. Learn more.
video series looks at the staggering amount of food wasted in the U.S. – a problem with major human and environmental costs. Watch the video.
video goes onto the front lines with Colorado firefighters confronting deadly blazes fueled by a hotter, drier climate. Watch the video.
A three-part series Tainted Harvest
looks at the soil pollution crisis in China, the threat it poses to the food supply, and the complexity of any cleanup. Read the series.