Energy Kingdoms: Oil and Political Survival in the Persian Gulf

Center on Global Energy Policy Series

by Jim Krane

After the discovery of oil in the 1930s, the Gulf monarchies—Saudi Arabia, Kuwait, Qatar, the United Arab Emirates, Oman, and Bahrain—went from being among the world’s poorest and most isolated places to some of its most ostentatiously wealthy. To maintain support, the ruling sheikhs provide their subjects with boundless cheap energy, unwittingly leading to some of the highest consumption rates on earth. Today, as summertime temperatures set new records, the Gulf’s rulers find themselves caught in a can they curb their profligacy without jeopardizing the survival of some of the world’s last absolute monarchies?In Energy Kingdoms, Jim Krane takes readers inside these monarchies to consider their conundrum. He traces the history of the Gulf states’ energy use and policies, looking in particular at how energy subsidies have distorted demand. Oil exports are the lifeblood of their political-economic systems—and the basis of their strategic importance—but domestic consumption has begun eating into exports while climate change threatens to render their desert region uninhabitable. At risk are the sheikhdoms’ way of life, their relations with their Western protectors, and their political stability in a chaotic region. Backed by rich fieldwork and deep knowledge of the region, Krane expertly lays out the hard choices that Gulf leaders face to keep their states viable.

Genres: Nonfiction, Economics, Politics, Middle East, Business

215 pages, Kindle Edition

Published January 8, 2019

Reviews

[Jessica · Rating 5 out of 5]

A current and relevant must-read. I think this should be added to high school curricula and taught in the context of the oil shale revolution in the US.

[Aisha · Rating 4 out of 5]

This book takes you back in history before the discovery of oil in the Gulf Arab states. It suggests that the Gulf Arab states have lived two golden ages one before oil (with trading associated with hajj), and the second one is associated with oil discoveries. It then goes on to discuss how the IOC have been taking control of the oil export revenues for almost two decades before the Gulf elites started to demand control over their own resources. Importantly, the book provides a historical overview of the evolution of Gulf Arabs' energy policy, which has led to today's energy-economy-political dilemma. It
argues that the abundance of cheap oil and gas resources have created unintended consequences that challenge the political and economic stability of the Gulf Arab states. In particular, the fossil fuel subsidies have been a driver for increasing domestic consumption, which has started to eat into the main source of income, oil exports. The drop in oil prices have put pressure over the Gulf states to rethink their social contract. Yet, the removal of these subsidies remains to be a difficult choice for the Gulf states should they choose to maintain the status quo.

[David Nygaard · Rating 5 out of 5]

This is a very well-researched book that exceeded my expectations. It is recent (2019) and provides a great overview of the geopolitical drivers in the region, as well as the perverse role that subsidies have played and the policies that governments in the region have used to overcome an ever increasing path dependence on fossil fuels that now threatens the future of the region. The book makes me want to seek out the author's other work. It provides a solid comparative overview of the countries and the major companies in the region but also explains how and why it is necessary to move away from subsidies and provides some lessons for the rest of the world.

[Zoltan Pogatsa · Rating 5 out of 5]

I give few books 5 stars, but this one really deserves it. Two simple theses, well proven by plenty of relevant facts: 1.) Gulf rulers have bought the loyalty of their subjects, so they are not under pressure to democratise, 2.) this very status quo makes them the most wasteful region on the planet in terms of energy use.

[Aruna Tayi · Rating 4 out of 5]

Living in Dubai this book fascinated me a lot to read about the Gulf countries and how they evolved from being poor tribes to one of the richest and highly successful, developed countries of the middle east after they discovered Oil.

[Shreyas Karanth · Rating 4 out of 5]

A nice, concise read about the Gulf states and their relationship with energy, subsidies and how all that correlates to the stability of the monarchy. Very well written, in simple language, and explains the whole "rentier state" approach to the GCC nations wonderfully.

[Sachin Bhatia · Rating 5 out of 5]

The quality of research is very good

[N · Rating 2 out of 5]

Very (very) biased and inaccurate. I can mention many examples where Jim's subjective assumptions influenced the book.

[Tyler · Rating 5 out of 5]

Energy Kingdoms is a well written and concise look at the political mechanics underlying the energy industry on the Arabian Peninsula. Krane aptly criticizes political theories where needed, and confirms others where appropriate. Overall the book is a greatly supported crash course on the middle eastern monarchies.