Committees Briefing 2000
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Petroleum Committee

• Oil, Middle East politics and  U.S. foreign policy - June 2000
• Management of small oil fields - February 2000

Oil, Middle East politics and U.S. foreign policy

The vice-chairman of the AmCham Egypt Committee on Petroleum, Mohamed Said Salama, began the committee meeting on June 6 by welcoming the speaker, Dr. Gregory Gause, director of the Middle East Studies Program at the University of Vermont. The discussion focused on ‘Oil, Middle East politics and U.S. foreign policy.’ Dr. Gause’s presentation concentrated on U.S. foreign policy, especially towards Saudi Arabia, also mentioning issues affecting the U.S.-Saudi relationship.

In 1998, oil prices had reached a low of $10 a barrel, and the Saudi government was facing a serious 25-percent budget deficit. Funding the Iraq-Iran War in the 1980s and financing the U.S. military effort in the Gulf War had put a heavy strain on the economy, and it was obvious that the kingdom was suffering serious economic problems when it was announced publicly that "the good old days" of the Gulf states were over.

Saudi Arabia was faced with two options: the first was to cut government spending and minimize subsidies, while the second was to try and raise the price of oil. Ultimately, they succeeded in raising the price per barrel to $30. Dr. Gause ended his presentation by noting that oil prices have become a factor in the upcoming Bush/Gore presidential campaign and elaborated on how this would affect the U.S.-Saudi relationship.

Management of small oil fields

At the January 24 meeting, guest speaker Eng. Sherif El Ezzawy, chairman of Petroleum Investment Company (PICO), led a discussion on the management of small oil fields. Items on the agenda included market characteristics, investment from 1974 to 2000 and ways to optimize the management of small fields.

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