January 12, 2005
India Daily
Saudi Arabia is going through a major transition. Al-Queda cells are so numerous that the kingdom is getting tired of eliminating them. They keep growing back before you eliminate them. The Jihadis are targeting foreign expatriate workers working in the oil industries. Many of these workers are slowly leaving Saudi Arabia to protect their lives.
Saudi Arabia ha a major crisis – workers willing to stay and work in the oil industry. The perception among the foreign workers are so bad that that the Saudi Government is slowly getting panicked.
If there is a solid knock out type terrorism in Saudi Arabia, the expatriate worker population will leave and the Saudi oil will get stuck right in the Arabian peninsula escalating oil price to level imagined before.
India’s vulnerability in oil is remarkable. In the whole world, she has least domestic oil compared to the growing demand. The higher oil price will be so devastating that Indian economy can reel for years and decades to come with high debt, negative balance of payments and external debt.
The growing Forex reserve can dry out in no time once it is clear that India just does not have enough reliable energy resource
Saudis in general are in a very precarious situation. According to international think tanks an increasing number of North American technical experts have backed out of projects for prominent oil companies in the kingdom because of similar security concerns. The health of the oil industry undoubtedly is critical to the country's political and social stability, as oil export revenues amount to 90-95 percent of total Saudi export earnings, 70-80 percent of state revenues and approximately 40 percent of the country's gross domestic product.
Saudi problem will extend itself right into India because as a matter of the only country that just cannot live without middle-eastern oil is really India and not United States.
India’s inability of utilizing coal, nuclear and other alternative energy can hurt badly.
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