THE FIRST OIL CRISIS
Sitting next to Yasmin in the space above the conference room where the fate of global energy dominance was being decided, I sipped my cola and pondered deeply, specifically about the future of the Arabian Empire.
There was a similar example to consider - the Kingdom of Saudi Arabia (ٱلْمَمْلَكَة ٱلْعَرَبِيَّة ٱلسُّعُوْدِيَّة).
'In my previous life, despite production costs barely exceeding $10 per barrel, Saudi Arabia continuously pushed for higher oil prices. Their economy heavily depended on oil revenues to fund massive welfare and military expenditures. It wasn't the citizens or private businesses that shouldered the vast financial deficits, but the oil sector.'
Saudi Arabia had no direct income tax, nor indirect taxes like VAT or corporate tax, except for a religious tax of about 2.5%.
This was insignificant compared to its ninth-largest global military expenditure and enormous welfare programs, relying heavily on oil sale revenues.
Free healthcare and education, waived tuition and dormitory fees, substantial welfare subsidies – a country with a 30% unemployment rate couldn't sustain this without oil dependency.
This meant that even with a production cost of around $10, oil prices needed to stay above $50-60 per barrel to prevent Saudi Arabia's economy from collapsing.
The kingdom was stuck between maintaining royal authority and appeasing its people through excessive populism.
However, the situation in the Arabian Empire was entirely different.
Was it due to the foresight of my father and grandfather, or simply because they viewed the citizens as lesser beings?
The Arabian Royal Family never intended to share even a fraction of oil sales revenue with the people.
The recent new city project was funded through government bonds purchased by the Royal Family, not by investing royal funds into national finances.
The people, already burdened with debt, were somewhat pitiable.
In the Arabian Empire, with almost no industrial enterprises and no welfare, the people struggled in the barren desert.
But what could be done?
The Royal Family valued family over the empire, though they did consider the citizens important too.
After all, isn't it said that precious children should be raised strictly?
"So, we need to create more job opportunities for our people. They shouldn't rely on welfare and weaken the nation's competitiveness. They should be worked hard, like dogs, for the future of the Arabian Empire."
While the lack of industrial infrastructure in the barren desert was daunting, perhaps it was fortunate that the Arabian Empire was heavily secularized.
In a capitalist society where every movement is calculated for maximum efficiency, it was a relief not to see workers stopping to pray five times a day.
As I mulled over these thoughts, the lower-level meeting finally concluded.
"Shall we go now?"
"Sounds good."
With Venezuela and the Arabian Empire reaching a dramatic agreement, the Iranian representative nodded in agreement.
For Iran, it was nauseating to join hands with Sunni leader, the Arabian Empire, but the prospect of a significant increase in oil capital was irresistible.
Watching them stand up and walk away together, I turned to Yasmin and asked curiously.
"Where are they going?"
"They're probably off to see the journalists."
"Journalists? To announce our formation of OPEC?"
"More like… 'America! We're going to raise oil prices! Brace yourselves for the storm!' It's like a declaration of war."
"...Insane."
***
In the United States of America, Washington D.C., Langley, Virginia, stands the headquarters of the Central Intelligence Agency (CIA).
This federal independent agency operates in the shadows to protect the United States from the grasp of the Soviet Union and Communists during the ongoing Cold War.
Many lives of operatives around the globe are lost like dust in the wind in the pursuit of global dominance.
In these halls, where the quiet shadow of death looms rather than the overt gunfire of war, cold efficiency and loneliness prevail.
Yet, today, the usually calm fortress was filled with loud voices.
-Bang, bang, bang
"What is this nonsense?! Representatives of the Iran Empire and the Republic of Venezuela meeting in Riyadh, the capital of the Arabian Empire?!"
"...As reported, sir!"
"I know that, damn it!"
"..."
The man pounding his fist on the desk in the innermost office of the CIA headquarters was Richard Helms.
As the Director of the Central Intelligence Agency (D/CIA) since 1966, he wielded enormous power in the American intelligence community for seven years.
His uncontrollable anger stemmed from the fact that he, a titan in the intelligence community, was unaware of a secret meeting that would sway the world's energy market.
Worse, he was learning about it from the news.
On the black-and-white TV in the CIA Director's office, a man in a suit, evidently from the Middle East, was announcing something to the journalists.
Specifically, it concerned the future direction of global energy dominance.
-Click, click
"Ladies and gentlemen, thank you for your time today."
"..."
"I am Ahmed Zaki Yamani, the Minister of Petroleum of the Arabian Empire and Chairman of the Arabian Aramco Group. I am dedicated to responsibly and strategically managing the energy resources of our great nation."
"..."
"The reason I, a mere Minister of Petroleum, am here with the Ministers of Petroleum from the Iran Empire and the Republic of Venezuela is… for the establishment of OPEC (Organization of the Petroleum Exporting Countries)."
-Click, click, click
-Click, click, click
The birth of this colossal trust, which could manipulate not only the global energy market but also world industry and economy, left the journalists in shock.
Even the spies dispatched from the United States, United Kingdom, France, Germany, Soviet Union, Japan, and Korea were no exception, gaping in astonishment.
"For decades, as I immersed my hands in the vast reserves of oil, contributing to the development of my country and the global industry, I have always thought."
"..."
"That our share in the modern industrial world, which revolves around oil, is far too small!"
"..."
"I am grateful that the Iran Empire and the Republic of Venezuela have empathetically agreed with my view."
Translation: You've had your fill of cheap oil till now, right? Now it's our turn to reap the benefits.
"So, we three among the top five oil-producing countries have united to form OPEC (Organization of the Petroleum Exporting Countries)."
"..."
"Through this, OPEC is committed to fostering cooperation, stability, and sustainability in the global energy market, not just for our domestic development but also in international relations."
"..."
"We believe in the power of energy diplomacy to build bridges, stimulate economic growth, and solve global challenges."
Translation: Now, we're weaponizing oil. Be prepared. If OPEC doesn't like a country, we'll just 'shut off the oil'.
"OPEC is based on fairness, transparency, and mutual benefits in global energy, not just for its member countries."
"..."
"We emphasize that our goal is to maximize the value of our energy resources while positively contributing to the energy security and stability of the international community."
Translation: No, that's just lip service. We're planning to collude and inflate oil prices.