00:03If the United States have so much oil, then why the U.S. relies heavily on Saudi Arabia?
00:08The U.S. produces more oil than any other country, yet it relies on Saudi Arabia to keep global prices
00:14stable.
00:15This dependence started in 1945, when President Roosevelt and King Abdulaziz agreed on a deal.
00:21U.S. military protection in exchange for oil supply.
00:24In 1974, the Petrodollar Agreement required Saudi Arabia to sell oil only in U.S. dollars, making the dollar the
00:32world's dominant currency.
00:34Saudi Arabia controls 17% of global oil reserves and leads OPEC, deciding how much oil is produced.
00:42In 2022, after Russia invaded Ukraine, oil prices surged, forcing the U.S. to negotiate with Saudi Arabia to increase
00:50production.
00:51But Saudi Arabia rejected, and prices got skyrocketed throughout the U.S.
00:56Even with record U.S. oil output, Saudi Arabia's control over OPEC and oil pricing makes it impossible for the
01:02U.S. to dictate Saudi Arabia.
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