Energy Kingdoms: Oil and Political Survival in the Persian Gulf (Center on Global Energy Policy Series) Paperback – April 6, 2021

Energy Kingdoms is a must read for anyone wanting to understand how energy and politics are connected in the Persian Gulf. Jim Krane's deep knowledge of the region comes through clearly as he explains the history, economics, and politics that have turned the Gulf states into major energy powers today.

Hats off to Jim Krane on his book, “Energy Kingdoms”. “Energy Kingdoms” is the second Jim Krane book that I have read after “Dubai”. “Energy Kingdoms” is an in depth look at the evolution of the Gulf Monarchies and how they have transitioned through the years. From the very beginnings in the 1930’s following the discovery of oil in the Gulf when the populations were small and unsophisticated, to the rapid expansion in population and energy use that is in place today.Jim Krane, does a marvelous job of illustrating the rentier state nature of the Gulf Monarchies and the social contract between the citizens and the ruling class. An arrangement that has predominantly been based on cheap energy subsidies in the land where oil and natural gas are so plentiful and cheap to extract.It is not addressed in the mainstream media very often just how much energy the Gulf Monarchies, namely Saudi Arabia, consume domestically on a daily basis. As the energy markets have witnessed since the 2014 downturn, Saudi Arabia and OPEC have had to delicately manage the market through production cuts since November of 2016. As Jim Krane eloquently writes in “Energy Kingdoms”, Saudi Arabia and the other Gulf States face a potential predicament where top line revenue will become continually impaired by the large portion of production that is consumed domestically at greatly subsidized prices.With all the press buzz about Saudi Aramco’s bond offering and potential IPO, I have often asked myself, how would Exxon’s stock price be valued if 30% of their production was sold to Texans at greatly subsidized prices? Perhaps more people will ask the same question after they read “Energy Kingdoms”.

The author does a great job showing how subsidized energy distorts the markets in the Arabian Gulf kingdoms, leading to massive wastes of petroleum, and a huge carbon footprint.

This was a very well written book. Energy Kingdoms gives you an inside look into the policy decisions of the energy kingdoms of the Middle East through the 20th and 21st centuries. Appreciated Dr. Krane's in-depth analysis of the geopolitical energy decisions of the Middle East and the impact on world energy market consumption and supply. I thoroughly enjoyed the book and am more informed on the energy situation in the middle east.

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. Itargues 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.