It's the Oil, Stupid: U.S. policy for Qatar, UAE, Yemen, & Oman

Qatar

The government:

In Qatar, the ruling Al Thani family continued to hold power following the declaration of independence in 1971. The head of state is the Emir, and the right to rule Qatar is passed on within the Al Thani family. Politically, Qatar is evolving from a traditional society into a modern welfare state. Government departments have been established to meet the requirements of social and economic progress. The Basic Law of Qatar 1970 institutionalized local customs rooted in Qatar's conservative Wahhabi heritage, granting the Emir preeminent power. The Emir's role is influenced by continuing traditions of consultation, rule by consensus, and the citizen's right to appeal personally to the Emir. The Emir, while directly accountable to no one, cannot violate the Shari’a (Islamic law) and, in practice, must consider the opinions of leading notables and the religious establishment. Their position was institutionalized in the Advisory Council, an appointed body that assists the Emir in formulating policy. There is no electoral system. Political parties are banned.

The economy:

In 1973, oil production and revenues increased dramatically, moving Qatar out of the ranks of the world's poorest countries and providing it with one of the highest per capita incomes. Despite a marked decline in levels of oil production and prices since 1982, Qatar remains a wealthy country.

Oil production will not long remain at peak levels of 500,000 barrels (80,000 m³) per day, as oil fields are projected to be mostly depleted by 2023. Fortunately, large natural gas reserves have been located off Qatar's northeast coast. Qatar's proved reserves of gas are the third-largest in the world, exceeding 7000 km³. The economy was boosted in 1991 by completion of the $1.5-billion Phase I of North Field gas development. In 1996, the Qatargas project began exporting liquefied natural gas (LNG) to Japan. Further phases of North Field gas development costing billions of dollars are in various stages of planning and development.

Qatar's heavy industrial projects, all based in Umm Said, include a refinery with a 50,000 barrels (8,000 m³) per day capacity, a fertilizer plant for urea and ammonia, a steel plant, and a petrochemical plant. All these industries use gas for fuel. Most are joint ventures between European and Japanese firms and the state-owned Qatar General Petroleum Corporation (QGPC). The U.S.Qatar's oil and gas industry, and U.S. is the major equipment supplier for companies are playing a major role in North Field gas development.

Possibly the best example of all nations in the Middle East--no political parties, no dissent, plenty of oil, and no questions asked.

United Arab Emirates

The UAE is a collection of several emirates which is ruler or commander. These were created in the 20th century by the western powers. The government is similar to Syria's:

The relative political and financial influence of each emirate is reflected in the allocation of positions in the federal government. The ruler of Abu Dhabi, whose emirate is the UAE's major oil producer, is president of the UAE. The ruler of Dubai, which is the UAE's commercial center and a significant oil producer, is vice president and prime minister.

Since achieving independence in 1971, the UAE has worked to strengthen its federal institutions. Nonetheless, each emirate still retains substantial autonomy, and progress toward greater federal integration has slowed in recent years. A basic concept in the UAE Government's development as a federal system is that a significant percentage of each emirate's revenues should be devoted to the UAE central budget.

Though the United Arab Emirates have a kind of parliament, there are no elections and parties in the United Arab Emirates. The Federal National Council (Majlis Watani Ittihad) has 40 members, representing the Emirates, appointed by the rulers of the constituent states to serve two-year terms, with only advisory tasks. The United Arab Emirates does not allow political parties.

The economy is what you might imagine:

In 2003, the UAE produced about 2.3 million barrels (370,000 m³) of oil per day--of which Abu Dhabi produced approximately 85%--with Dubai, and Sharjah to a much lesser extent, producing the rest. Indeed, estimates say that Dubai has less than 10 years of oil left at current production levels and Sharjah has less. Sharjah however, does have some gas reserves remaining. Dubai's small remaining gas reserves are earmarked for use by Dubai, which is one of the largest aluminum smelters in the world, with a very low cost per ton of production, thanks in part to its energy needs being met by these gas reserves.

So again, not much of a democracy, but to compensate, there are plenty of oil reserves that are conveniently sold to the West.

Yemen

The government of Yemen has many characteristics similar to other western nations:

Politics of Yemen takes place in a framework of a presidential representative democratic republic, whereby the President of Yemen is both head of state and head of government. Although it is notionally a pluriform multi-party system, in reality it is completely dominated by one party, the General People's Congress, and has been since unification. Executive power is exercised by the government. Legislative power is vested in both the government and parliament. The Judiciary is theoretically independent but in reality it is prone to interference from the executive branch. Yemen is a republic with a bicameral legislature. Under the constitution, an elected president, an elected 301-seat House of Representatives, and an appointed 111-member Shura Council share power. The president is head of state, and the prime minister is head of government. The constitution provides that the president be elected by popular vote from at least two candidates endorsed by Parliament; the prime minister is appointed by the president. The presidential term of office is 7 years, and the parliamentary term of elected office is 6 years. Suffrage is universal over 18.

The economy features oil but less prominently than many of its Middle Eastern counterparts:

Following a minor discovery in 1982 in the south, an American company found an oil basin near Ma'rib in 1984. A total of 27,000 m³ (170,000 barrels) per day were produced there in 1995. A small oil refinery began operations near Ma'rib in 1986. A Soviet discovery in the southern governorate of Shabwah has proven only marginally successful even when taken over by a different group. A Western consortium began exporting oil from Masila in the Hadhramaut in 1993, and production there reached 67,000 m³ (420,000 barrels) per day in 1999. More than a dozen other companies have been unsuccessful in finding commercial quantities of oil. There are new finds in the Jannah (formerly known as the Joint Oil Exploration Area) and east Shabwah blocks. Yemen's oil exports in 1995 earned about $1 billion.

Marib oil contains associated natural gas. Proven reserves of 280 to 370 km³ (10-13 trillion cubic feet) could sustain a liquid natural gas (LNG) export project. A long-term prospect for the petroleum industry in Yemen is a proposed liquefied natural gas project (Yemen LNG), which plans to process and export Yemen's 480 km³ (17 trillion cubic feet) of proven associated and natural gas reserves. In September 1995, the Yemeni Government signed an agreement that designated Total of France to be the lead company for an LNG project, and, in January 1997, agreed to include Hunt Oil, Exxon, and Yukong of South Korea as partners in the project (YEPC). The project envisions a $3.5 billion investment over 25 years, producing approximately 3.1 million tons of LNG annually. A Bechtel-Technip joint venture also conducted a preliminary engineering study for LNG production/development.

Oman

The government:

Politics of Oman takes place in a framework of a absolute monarchy whereby the Sultan of Oman is not only head of state, but also the head of government. Chief of state and government is the hereditary sultan, Qabūs ibn Saˤīd as-Saˤīd, who appoints a cabinet to assist him. In the early 1990s, the sultan instituted an elected advisory council, the Majlis ash-Shura, though few Omanis were eligible to vote.

The economy:

Oil was first discovered in the interior near Fahud in the western desert in 1964. Petroleum Development (Oman) Ltd. (PDO) began production in August 1967. The Omani Government owns 60% of PDO, and foreign interests own 40% (Royal Dutch Shell owns 34%; the remaining 6% is owned by Compagnie Francaise des Petroles [Total] and Partex). In 1976, Oman's oil production rose to 366,000 barrels (58,000 m³) per day but declined gradually to about 285,000 barrels (45,000 m³) per day in late 1980 due to the depletion of recoverable reserves. From 1981 to 1986, Oman compensated for declining oil prices by increasing production levels to 600,000 b/d. With the collapse of oil prices in 1986, however, revenues dropped dramatically. Production was cut back temporarily in coordination with the Organization of Petroleum Exporting Countries (OPEC), and production levels again reached 600,000 b/d by mid-1987, which helped increase revenues. By mid-2000, production had climbed to more than 900,000 b/d where they remain. Oman is not a member of OPEC.

Natural gas reserves, which will increasingly provide the fuel for power generation and desalination, stand at 18 trillion ft³ (510 km³). An LNG processing plant located in Sur was opened in 2000, with production capacity of 6.6 million tons/YR, as well as unsubstantial gas liquids, including condensates.

Oman does not have the immense oil resources of some of its neighbors. Nevertheless, in recent years, it has found more oil than it has produced, and total proven reserves rose to more than 5 billion barrels (0.8 km³) by the mid-1990s. Oman's complex geology makes exploration and production an expensive challenge. Recent improvements in technology, however, have enhanced recovery.

Oman is another good example of a nation in the Middle East with a monarchial system controlling oil reserves.

Tags: oil, Middle East, Corporations, U.S. Foreign Policy, Bush Administration, Qatar, United Arab Emirates, Yemen, Oman