People who make a big fuzz about this haven't truly done the math on the scale of it vs. the US dollar worldwide.
Saudi Arabia oil exports are 200B USD/year, give or take. The world has a GDP of ~100T USD, how much of that is traded in US dollars? We could put an estimate based on total currency reserves, of which USD is about half of that. 200B out of 50T is "merely" 0.05% ...
Sure, they may be one of the single major traders of USD, but at 0.05% what this tells you is that the USD is extremely diversified, and that's good!
(Also, this is implying Saudi Arabia bins the whole deal overnight, which is very unlikely to happen)
> the US runs on diesel. We don't produce much heavy oil so we import it
Diesel is a medium-weight distillate; we can turn light oil into it fine. We refine most of our diesel and import the balance from Canada [2].
> Fracking, anyway, is an economic mirage enabled by cheap credit and expensive oil
Our production costs mirror Russia’s [3][4]. (They’re dwarfed by Saudi Arabia’s fiscal break even.)
Consider citing your comments. I’ve sometimes started writing something as riddled with errors as yours, only to find myself corrected when searching for citations.
In terms of total petroleum products (including crude, gasoline, and diesel) the US has become a net exporter in the last few years.
> In 2020, the United States became a net exporter of petroleum for the first time since at least 1949. In 2022, total petroleum exports were about 9.52 million barrels per day (b/d) and total petroleum imports were about 8.33 million b/d, making the United States an annual net total petroleum exporter for the third year in a row.
Saudi Arabia oil exports are 200B USD/year, give or take. The world has a GDP of ~100T USD, how much of that is traded in US dollars? We could put an estimate based on total currency reserves, of which USD is about half of that. 200B out of 50T is "merely" 0.05% ...
Sure, they may be one of the single major traders of USD, but at 0.05% what this tells you is that the USD is extremely diversified, and that's good!
(Also, this is implying Saudi Arabia bins the whole deal overnight, which is very unlikely to happen)