Project and content management for Contemporary Authors volumes
WORK TITLE: Saudi, Inc.
WORK NOTES:
PSEUDONYM(S):
BIRTHDATE: 1982?
WEBSITE: http://www.ellenrwald.com/
CITY: Jacksonville
STATE: FL
COUNTRY: United States
NATIONALITY: American
RESEARCHER NOTES:
LC control no.: no2018067114
Descriptive conventions:
rda
Personal name heading:
Wald, Ellen R. (Ellen Rose), 1981-
Birth date: 1981
Fuller form of name
Ellen Rose
Found in: Saudi Inc., 2018: t.p. (Ellen R. Wald)
Email from the author, May 7, 2018 (Ellen Rose Wald; DOB:
1981)
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PERSONAL
Born 1981.
EDUCATION:Princeton University, A.B. (magna cum laude); Boston University, Ph.D.
ADDRESS
CAREER
Entrepreneur, consultant, educator, and writer. University of Georgia, Athens, visiting assistant professor; University of Wyoming, Laramie, Bernard L. Majewski Fellow; Boston University, MA, lecturer; University of Cambridge, England, visiting scholar; Transversal Consulting, Miami Shores, FL, founder and president; Jacksonville University, FL, instructor. Has appeared on television and radio programs.
WRITINGS
Contributor of a weekly column to the Investing.com, Forbes, and Arab News websites.
SIDELIGHTS
Ellen R. Wald is an entrepreneur, consultant, educator, and writer. She holds a bachelor’s degree from Princeton University and a Ph.D. from Boston University. Wald has taught at the University of Georgia, the University of Wyoming, Boston University, the University of Cambridge, and Jacksonville University. She founded and serves as the president of Transversal Consulting, a company specializing in energy industry. Wald has been a guests on television and radio programs.
In 2018, Wald released her first book, Saudi, Inc.: The Arabian Kingdom’s Pursuit of Profit and Power. In this volume, she traces the history of the powerful Saudi Arabian energy company, ARAMCO. Wald explains that Abdul Aziz, the first King of Saudi Arabia, made shrewd decisions when oil was discovered in his country in 1938. He brought in foreigners to help him set up ARAMCO. Then, leaders of the company used what they learned to make it a powerful player in the global market. Wald explains how the company has evolved and makes suggestions for improvements.
Critics offered favorable assessments of Saudi, Inc. A Kirkus Reviews contributor described the book as “a solid overview of a nation much in world news and of economic trends that will have significant effects in the global marketplace in years to come.” “Wald has produced a clear, concise history of both the kingdom and its all-important oil corporation,” asserted a writer in Publishers Weekly. John Waterbury, critic on the Foreign Affairs website, remarked: “Wald has written a competent history of the Saudi Arabian Oil Company.” “Wald’s account is fascinating and useful because it explains what makes the Saudi oil business so unique. It reads like a blueprint for Saudi success,” suggested Matthew Reed on the Cairo Review website. Reed concluded: “Crown Prince Mohammed Bin Salman should read Saudi, Inc. precisely because his style is so different from those who came before him. Wald’s account makes this clear, albeit implicitly, since her book does not touch on recent events. The crown prince would find much to like in Saudi, Inc. ARAMCO’s corporate ethos is that which the crown prince wants to impose on his government. The results speak for themselves but Wald’s book stands out for its clarity and timeliness.” Daniel P. Collins, contributor to the Futures website, commented: “Wald has done a tremendous job researching the history of the House of Saud and the evolution of Aramco and provides an in-depth analysis of the people and personalities involved.” Collins also stated: “Saudi Inc. is an essential text for anyone who wants to understand the unique history of both Saudi Arabia and Saudi Aramco.”
BIOCRIT
PERIODICALS
Kirkus Reviews, February 15, 2018, review of Saudi, Inc.: The Arabian Kingdom’s Pursuit of Profit and Power.
Publishers Weekly, May 22, 2017, Rachel Deahl, “Pegasus Nabs Book on Saudi Aramco,” article about author, p. 10; January 15, 2018, review of Saudi, Inc., p. 50.
ONLINE
Cairo Review, https://www.thecairoreview.com/ (spring, 2018), Matthew Reed, review of Saudi, Inc.
Ellen R. Wald website, http://www.ellenrwald.com/ (June 4, 2018).
Foreign Affairs Online, https://www.foreignaffairs.com/ (May 1, 2018), John Waterbury, review of Saudi, Inc.
Futures, http://www.futuresmag.com/ (March 20, 2018), Daniel P. Collins, review of Saudi, Inc.
Pegasus Books website, http://pegasusbooks.com/ (June 4, 2018), author profile.
Transversal Consulting website, http://www.transversalconsulting.com/ (June 4, 2018), author profile.
Van Wie Financial website, https://vanwiefinancial.com/ (June 4, 2018), article about author.
As the president of Transversal Consulting, current projects include guiding businesses in various industries on the confluence of energy markets and geopolitics. I write a weekly column on geopolitics and the energy markets at investing.com, which is translated into multiple languages. I have a weekly column at Forbes online addressing topics in energy for a broader audience and a new column at Arab News for business in the Gulf region. I also teach Middle East history and policy at Jacksonville University.
Recent Book on the History of Aramco and Saudi Arabia:
“Saudi, Inc.” presents the history of Saudi Arabia through the central figure of Aramco, the oil company that brought riches, success, and regional dominance to the ruling family, al Saud. Now Saudi Aramco prepares to launch its much-anticipated IPO, expected to be the largest in history with a possible valuation of up to $2 trillion. The Kingdom is also embarking on a massive investment in its Vision2030 plan for economic diversification; the rebirth of an economic and diplomatic relationship with the U.S. worth hundreds of billions of dollars in investment in both directions; and preparation by the next generation to take leadership positions in the Kingdom – transforming society, business, and the state. Order here: amazon logo B&N page
Saudi, Inc.Bio:
I grew up just outside of Philadelphia. I earned an A.B. magna cum laude in history from Princeton University with specialties in Near Eastern studies and creative writing. As a graduate student at Boston University, I studied the American and Middle-Eastern energy industries with both an economist and a foreign relations specialist. I have conducted significant research on geopolitics and energy markets at the American Heritage Center at the University of Wyoming, the National Archives, the British Petroleum Archives, and the British National Archives. My dissertation was entitled, “The United States, Great Britain and the Middle-Eastern Oil Industry, 1945-1960.”
Past Appointments Include:
Visiting Assistant Professor of Middle East History, University of Georgia
Bernard L. Majewski Fellow in Economic Geology at the American Heritage Center, University of Wyoming
Lecturer in History and International Relations, Boston University
Visiting Scholar, Cambridge University
Languages:
I have conducted research in English, Hebrew, and Farsi. I am knowledgeable in Arabic and Spanish.
Leadership
Ellen R. Wald, Ph.D. is a historian, policy expert, and business consultant. She began Transversal Consulting after years of providing independent analysis to industry leaders. At the core of her efforts lies a belief that clients needs facts and realistic analysis provided by true experts via exceptional communication.
She is the author of “Saudi, Inc.: The Arabian Kingdom’s Pursuit of Profit and Power,” a book on the history and strategy of Aramco and Saudi Arabia. She is the foremost expert on Aramco strategy and motivations, and has met with numerous top current and former executives of the firm. She is frequently sought for her expertise on the company past and present as well as her analysis of company activities and plans for the future.
Dr. Wald’s energy industry and geopolitical analyses are read by tens of thousands each week. She writes a weekly column on geopolitics and the energy markets at investing.com, which is translated into multiple languages. She has a weekly column at Forbes online addressing topics in energy for a broader audience and a new column at Arab News for business in the Gulf region. She has also provided frequent analysis for Modern Trader magazine, various U.S. daily newspapers, and history and policy journals. Dr. Wald regularly comments on policy and industry on television and radio in the U.S., Canada, and Europe.
A graduate of Princeton University (A.B. history, Near Eastern studies) and Boston University (Ph.D. energy history, foreign policy, Middle East), Dr. Wald has taught international relations, Middle East history, and policy for a decade. She has held academic appointments at the University of Georgia, the American Heritage Center at the University of Wyoming, Boston University, and University of Cambridge. She has also lectured on energy and geopolitics across the U.S., the U.K., and the Middle East.
Ellen R. Wald, Ph.D.
President at Transversal Consulting and author of "Saudi, Inc.: The Arabia Kingdom's Pursuit of Profit and Power"
Jacksonville, Florida Area
Nonprofit Organization Management
Current
Transversal Consulting, Arab News, Forbes
Previous
The Arabia Foundation, www.ellenrwald.com, JAX Energy Alliance
Education
Princeton University
Ellen R. Wald, Ph.D.’s Activity
See all activity
Ellen R. Wald, Ph.D. shared
US Shale Forecast Looks Up, But Debt Looms
Rising oil prices may make shale oil companies look like a good bet, but looming debt could...
Ellen R. Wald, Ph.D. shared
How to Save the Saudi Golden Goose
Saudi Arabia’s national oil company has served the royal family and the Kingdom well. Don’t mess...
Ellen R. Wald, Ph.D. shared
Why The Trump EPA May Lower Obama's Fuel Standards
What's driving the Trump administration's attempt to change regulations governing fuel efficiency...
Ellen R. Wald, Ph.D. shared
Coming Iran Sanctions Decision By Trump Looms Large Over...
How will Trump’s upcoming decision in Iran sanctions impact markets and the global economy?
Ellen R. Wald, Ph.D. shared
Trump Tweet Blames OPEC For Higher Oil Prices, Market...
President Donald Trump took to twitter this morning to blame OPEC for "artificially" high oil...
Ellen R. Wald, Ph.D. shared
Iran Currency Crisis Could Threaten Political Stability
Iran's currency has suffered an unprecedented devaluation over the past few months. Will this lead...
See more
Experience
President
Transversal Consulting
February 2018 – Present (4 months)Jacksonville, Florida
Transversal utilizes a network of scholars and experienced professionals to bring vital expertise on the particulars that drive regional and global situations in the energy market today. Our area knowledge and expertise in communicating crucial and complicated concepts gives clients the edge in identifying and approaching opportunities.
Arab News
Columnist
Arab News
March 2018 – Present (3 months)
Forbes
Contributor
Forbes
April 2016 – Present (2 years 2 months)
I write about energy and geopolitics
Columnist
Modern Trader Magazine
2015 – Present (3 years)
I write about issues in politics and energy markets.
Jacksonville University
Adjunct Professor of Social Science
Jacksonville University
2014 – Present (4 years)
International Studies and Middle East History and Policy
The Arabia Foundation
Non-Resident Scholar
The Arabia Foundation
October 2017 – May 2018 (8 months)Washington D.C. Metro Area
Independent Consultant
www.ellenrwald.com
January 2015 – February 2018 (3 years 2 months)Jacksonville, FL
Write and consult on issues relating to the global energy industry, oil prices, geopolitics, and emerging energy technologies
Consulting Member
JAX Energy Alliance
February 2016 – 2017 (1 year)Jacksonville, FL
University of Georgia
Visiting Assistant Professor of History
University of Georgia
2012 – 2013 (1 year)
Middle East History
University of Wyoming
Majewski Fellow in Economic Geology
University of Wyoming
January 2012 – December 2012 (1 year)Laramie, WY
Fellow at the American Heritage Center and featured speaker: "Oilmen in the Beltway: Fighting the Enemy with Business and Government," March 2013.
Boston University
Lecturer and Teaching Fellow
Boston University
September 2006 – May 2012 (5 years 9 months)Greater Boston Area
International Relations
Visiting Scholar
Cambridge University
September 2010 – December 2010 (4 months)Cambridge, United Kingdom
Visiting scholar at Faculty of History and Clare College
Education
Princeton University
Princeton University
Bachelor's Degree, History
2000 – 2004
Boston University
Boston University
Doctor of Philosophy (Ph.D.), History
2006 – 2013
Publications
Saudi Inc." The Arabian Kingdom's Pursuit of Profit and Power
Pegasus Books
April 2018
Authors:
Ellen R. Wald, Ph.D.
The real problem with Iranian oil
Futures
April 2016
Authors:
Ellen R. Wald, Ph.D.
Saudis and Russia battle to grease China
Modern Trader
March 2016
Authors:
Ellen R. Wald, Ph.D.
Saudi Arabia Inc.?
Modern Trader
March 2016
Authors:
Ellen R. Wald, Ph.D.
OPEC meeting shows it is playing long game
Futures
December 2015
Authors:
Ellen R. Wald, Ph.D.
OPEC: We break down the players going into vital meeting
Futures
December 2015
Authors:
Ellen R. Wald, Ph.D.
A Keystone XL Post-Mortem
Modern Trader Magazine
December 2015
"The Keystone debate represented the worst in American political ideological entrenchment."
Authors:
Ellen R. Wald, Ph.D.
Refineries, Not Exports Is What’s Needed
Modern Trader Magazine
November 2015
Authors:
Ellen R. Wald, Ph.D.
6 reasons why the U.S. oil industry won’t replace OPEC
Futures Magazine
June 2015
Authors:
Ellen R. Wald, Ph.D.
The Future of Fracking
Futures Magazine
May 2015
Authors:
Ellen R. Wald, Ph.D.
The real reason OPEC cut oil prices: Saudi Arabia’s impending buying spree
Futures
February 2015
Authors:
Ellen R. Wald, Ph.D.
Economic Public Policy, the Energy Crisis, and Natural Resources (2000s-Present)
The Guide to U.S. Economic Policy
June 2014
Authors:
Ellen R. Wald, Ph.D.
Pipe Dreams: How Many Jobs Will Be Created By Keystone XL?
Forbes.com
May 2013
Authors:
Ellen R. Wald, Ph.D.
The Green-Washing of Clean Energy Branding
Forbes.com
April 2013
Authors:
Ellen R. Wald, Ph.D.
When Government Empowers Industry: The Petroleum Administration for Defense, 1950-1954
Oil-Industry History Journal
December 2012
Authors:
Ellen R. Wald, Ph.D.
Ellen R. Wald, Ph.D. is a widely cited consultant on geopolitics and the global energy industry. A frequent commentator on oil pricing, energy policy, alternative energies, OPEC, and political economy, she earned her doctorate in history at Boston University and an AB in history, Near Eastern Studies, and creative writing at Princeton University. She teaches Middle East history and policy and has appeared on TV and radio on three continents.
Interview with energy expert Dr. Ellen R. Wald Ph.D.
On the radio program this week, we were pleased to be able to discuss one of our favorite market sectors with a true expert in the field. Ellen R. Wald, Ph.D., is a Professor of Middle Eastern History and Policy at Jacksonville University. She is a prolific writer, publishes an energy newsletter (one that both Adam and Steve read), and is currently writing a book on Saudi Arabia. Since the Saudi oil reserves are among the world’s largest, they are a main player in the world oil market.
Professor Wald’s observations of interest, along with some of our own, include:
Venezuela’s oil reserves are most probably the largest in the world, likely eclipsing even those of Saudi Arabia. However, their political situation is in such turmoil from years of Socialist leadership, their production is low and their economy is in shambles.
Brazil is becoming more like Venezuela every day. Their now-deposed leader, Dilma Rousseff, is facing impeachment proceedings for “cooking the books” from the massive offshore oil fields. This is something she was probably certain that she could do, as she was formerly the Oil Minister in Brazil. However, she was caught, production is down, crime is up, and the Olympics are looming, but the venues are not complete. Then there is the Zika Virus, which is casting a scare over potential attendees.
Gasoline prices fell from about $4.00/gallon a few years ago to about $1.60/gallon a few weeks ago. Now they are rising, with a national average up to $2.228/gallon. The fall was precipitated by fast-rising supplies, much of which was from fracking in the United States. The current price rise is stimulated by falling production and growing demand. My observation: this is perhaps the most perfect example of the law of supply and demand I have ever followed.
Wald does not believe that we will approach the highest price range any time soon, as producers are more efficient that they were a few years ago, and are able to make money at lower prices. However, following a likely pullback (not to the recent lows), the price of oil should rise a bit further, perhaps hitting the $60/barrel level from today’s $46/barrel. Gasoline prices will follow, and should rise a bit further.
Saudi Arabia is planning to take public a small part of ARAMCO, the national oil company, in an IPO that is garnering a lot of interest. I was concerned that the lack of transparency of the Saudi government might render this an unsuitable investment. Wald disagreed, and explained that the company was formerly public, is very sophisticated, and has outstanding accounting standards.
I inquired about energy independence for the USA, or at least in North America. Wald is an advocate, but pointed out some problems that may stand in the way. Much of the problem is political, and the regulatory authorities are forever tightening around producers of hydrocarbons. So-called renewable energy sources are inefficient and expensive, and until we get better at energy storage, there is little hope for “alternatives” to significantly increase their market share. However, Liquefied Natural Gas (LNG) is a very promising source, and should be a major player for the next several years.
The upcoming election will influence the regulatory environment, which will directly impact each and every one of us as consumers of energy. What it will mean for investors is yet to be determined.
Investing in energy can be done in many ways. Depending on the individual investor, the objective can be to target price increases of the commodities themselves, the success of the producing companies, or investments in the service companies and utilities that transform the energy for consumers. At Van Wie Financial, we prefer using Exchange-Traded Funds, or ETFs, to facilitate these investments. Because the energy sector is largely dominated by a few large companies, diversification is difficult. Depending on the particular ETF, we can get either a narrow or broad diversification.
Investors interested in the energy sector need to be aware of constantly-changing market conditions, including the geo-political climate, consumer preferences, and a host of specific potential problems, such as market interruptions. We welcome your inquiries and discussions, both in the office and on the radio.
QUOTED: "a solid overview of a nation much in world news and of economic trends that will have significant effects in the global marketplace in years to come."
Wald, Ellen R.: SAUDI, INC
Kirkus Reviews. (Feb. 15, 2018):
Copyright: COPYRIGHT 2018 Kirkus Media LLC
http://www.kirkusreviews.com/
Full Text:
Wald, Ellen R. SAUDI, INC. Pegasus (Adult Nonfiction) $27.95 4, 3 ISBN: 978-1-68177-660-6
Tracing the conjoined realms of dynastic politics and international commerce in the history of Saudi Arabia.
It was an Arab from the desert, Abdul Aziz, who led the struggle to unify the tribes of the Arabian Peninsula into the kingdom of al Saud, but what gave him the wherewithal to link the settlements of his new country were petrodollars, brought to the kingdom by an American concern called Aramco. Indeed, writes energy consultant and historian Wald, it was the vision of what the company built for its own workers--schools and hospitals and apartment blocks--that set Abdul Aziz on his modernizing path, which was undertaken with some reluctance since the king "felt more than a little uneasy at the pace at which his people's traditional lifestyle was changing." Later, the Saudi government would nationalize Aramco; in recent years, there have been proposals for a public offering, though whether for Saudi investors exclusively or a broader clientele remains to be seen. Wald shows how the al Saud rulers entered into another uneasy alliance--with religious fundamentalists--in order to legitimate and solidify their rule and spread it throughout Arabia. She rejects the thought that, despite the overwhelming Saudi presence among the 9/11 hijackers, the Saudi royals have much involvement with terrorism, which is bent on upsetting their power as much as waging jihad against the West. The author closes by hinting at reforms that she notes at the outset are beyond the scope of her discussion, reforms not just in the structure of Aramco and the company's approach to energy, but also in the larger Saudi society, evidenced by such things as greater investment in education and a diversified economy in which women fully participate.
A solid overview of a nation much in world news and of economic trends that will have significant effects in the global marketplace in years to come.
Source Citation (MLA 8th Edition)
"Wald, Ellen R.: SAUDI, INC." Kirkus Reviews, 15 Feb. 2018. General OneFile, http://link.galegroup.com/apps/doc/A527248083/ITOF?u=schlager&sid=ITOF&xid=afb6e94f. Accessed 20 May 2018.
Gale Document Number: GALE|A527248083
QUOTED: "Wald has produced a clear, concise history of both the kingdom and its all-important oil corporation."
Saudi, Inc.: The Arabian Kingdom's Pursuit of Profit and Power
Publishers Weekly. 265.3 (Jan. 15, 2018): p50.
Copyright: COPYRIGHT 2018 PWxyz, LLC
http://www.publishersweekly.com/
Full Text:
Saudi, Inc.: The Arabian Kingdom's Pursuit of Profit and Power
Ellen R. Wald. Pegasus, $27.95 (314p) ISBN 978-1-68177-660-6
Wald, an energy consultant, takes aim at the image of Saudi Arabia as a hidebound, oil-reliant monarchy, and here presents the kingdom as a canny and agile power player throughout the 20th century. Wald writes too little about royal-family corruption, a subject brought to the fore in 2017 by sweeping internal purges throughout Saudi Arabia, but she is superb on intraroyal machinations, such as the early 1960s power struggle that resulted in King Saud's ouster by his brother Prince Faisal, and on U.S.-Saudi relations, including how King Fahd overcame clerical objections to the housing of American troops in his country during the first Iraq War. Concerning Aramco, the national oil company, Wald shows how Saudis "hired Westerners, learned from them, and eventually positioned [their country], to take over operations and build on its own." She also reveals it was Aramco's expansion into Asia and diversification, including into solar energy, that allowed it and the kingdom to survive the 2016 plunge in oil prices. Despite some occasional stylistic awkwardness--e.g., "It is not unreasonable to say that women in Saudi Arabia have not been treated equally to men"--Wald has produced a clear, concise history of both the kingdom and its all-important oil corporation. (Apr.)
Source Citation (MLA 8th Edition)
"Saudi, Inc.: The Arabian Kingdom's Pursuit of Profit and Power." Publishers Weekly, 15 Jan. 2018, p. 50. General OneFile, http://link.galegroup.com/apps/doc/A523888923/ITOF?u=schlager&sid=ITOF&xid=cfcd6e2a. Accessed 20 May 2018.
Gale Document Number: GALE|A523888923
Pegasus nabs book on Saudi Aramco
Rachel Deahl
Publishers Weekly. 264.21 (May 22, 2017): p10.
Copyright: COPYRIGHT 2017 PWxyz, LLC
http://www.publishersweekly.com/
Full Text:
Claiborne Hancock at Pegasus Books bought North American rights to Ellen R. Wald's Saudi Inc. William Clark, who has an eponymous shingle and represented Wald, said the book chronicles the rise of the wealthiest energy company i n the world, Saudi Aramco. The book tells a tale, Clark said, about "the family of Bedouin tribesmen who ruthlessly and shrewdly maneuvered to control this multi-trillion-dollar enterprise" and "peels back the persistent image of the Saudis as simply religious zealots who do nothing more than drill holes in the ground." Wald covers energy and global politics for Forbes.
Caption: Wald
Source Citation (MLA 8th Edition)
Deahl, Rachel. "Pegasus nabs book on Saudi Aramco." Publishers Weekly, 22 May 2017, p. 10. General OneFile, http://link.galegroup.com/apps/doc/A494098986/ITOF?u=schlager&sid=ITOF&xid=82a8ac12. Accessed 20 May 2018.
Gale Document Number: GALE|A494098986
QUOTED: "Wald has written a competent history of the Saudi Arabian Oil Company."
Saudi, Inc.: The Arabian Kingdom's Pursuit of Profit and Power
by Ellen R. Wald
Reviewed by John Waterbury
Wald has written a competent history of the Saudi Arabian Oil Company (Saudi Aramco) and of how the House of Saud came to dominate the Arabian Peninsula in the 1920s. The book is built on interviews, U.S. government records, and the work of other historians, but not Saudi Aramco’s archives. Its most original parts deal with the Saudi government’s “long game” to gain full control of Aramco while avoiding outright nationalization. That project was completed in 1980, when, after decades of gradually increasing its influence over the company, the government acquired the entire firm. In the resulting arrangement, Aramco owned the expertise, but the kingdom owned the oil it produced. Throughout Aramco’s history, Saudi Arabia has always found a way to make money selling oil, shape world petroleum prices, and avoid lasting confrontation with the United States. Even the 1973 embargo of oil exports to the United States, imposed by the Arab members of OPEC in retaliation for U.S. support of Israel during the Yom Kippur War, did not do long-term damage to the U.S.-Saudi alliance.
QUOTED: "Wald’s account is fascinating and useful because it explains what makes the Saudi oil business so unique. It reads like a blueprint for Saudi success."
"Crown Prince Mohammed Bin Salman should read Saudi, Inc. precisely because his style is so different from those who came before him. Wald’s account makes this clear, albeit implicitly, since her book does not touch on recent events. The crown prince would find much to like in Saudi, Inc. ARAMCO’s corporate ethos is that which the crown prince wants to impose on his government. The results speak for themselves but Wald’s book stands out for its clarity and timeliness."
Saudi, Inc.
How Saudi Arabia’s national oil company transformed the desert kingdom.
By Matthew Reed
Spring 2018
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Saudi, Inc.: The Arabian Kingdom’s Pursuit of Profit and Power. By Ellen R. Wald. Pegasus Books, New York, 2018. 448 pp.
Two years ago, then-Deputy Crown Prince Mohammed Bin Salman shocked the world when he announced that 5 percent of Saudi Arabia’s national oil company, Saudi ARAMCO, would be offered publicly. His valuation of $2 trillion or more for all of ARAMCO would make it the most valuable company on the planet. Since then he has steadily consolidated power, pushed out rivals, and reshuffled the government. Now the 32-year-old is next in line to be king.
For the young and brash Mohammed Bin Salman, the ARAMCO IPO announcement was a declaration of independence. No longer would Saudi Arabia be hostage to the boom-bust cycles of oil prices, he swore. Instead, the kingdom would dare to end its dependency on oil, which dated back to its discovery in 1938. To do that Saudi Arabia would rationalize the welfare state and streamline a bloated government. It would also sell shares in ARAMCO and use those funds to develop non-oil industries at home.
Saudi, Inc.: The Arabian Kingdom’s Pursuit of Profit and Power, a new book by Ellen R. Wald, neatly tells the story of how ARAMCO evolved from an American company in Arabia into the Saudi ARAMCO we know today: a world-class oil company that is 100 percent Saudi-owned and does much more than produce crude. In a matter of decades ARAMCO elevated Saudi Arabia from the humblest beginnings as a poor backwater, overshadowed by Cairo, Damascus and Baghdad, into a global energy powerhouse and the captain of Organization of the Petroleum Exporting Countries (OPEC). Wald’s account is well-written, the characters are colorful, and the stakes are huge throughout. The shrewdness of Saudi leaders since King Abdul Aziz is evident in every chapter.
Wald explores how the company’s success literally and figuratively paved the way for Saudi Arabia’s modernization and urbanization. As she tells it, the company’s efficiency, technical prowess, and merit-based corporate culture made it exceptional in a region where its peers have suffered from political meddling. ARAMCO and oil policy, by contrast, were deemed so precious from the beginning that Saudi leaders made sure to protect them from princely whims. The Saudi state was built on taxes and royalties from ARAMCO. Those petrodollars paid for hospitals, highways, and universities, Wald details, and in later years they paid to extend Saudi influence around the globe through mosques and Wahhabi teachings, with unintended consequences.
Naturally, Saudi-U.S. relations feature prominently in a story about an American company that is gradually bought by the Saudi state. Unlike other oil companies in the Middle East—many of which were nationalized outright—Saudi Arabia purchased tranches of ARAMCO stock from the Americans throughout the 1970s, until Riyadh became the sole owner in 1980.
When most Americans think of Saudi Arabia today, they think of OPEC’s wrath and Al-Qaeda, but in the years after ARAMCO discovered oil, Washington saw cheap Saudi crude as essential to the success of the Marshall Plan in Europe. Americans pumped the crude and the Saudis profited from it, but it was the Europeans who really needed it after World War II. That changed around 1970 when American oil production waned and the United States started importing more oil. Thus, the stage was set for the nastiest spat in the relationship’s long history.
Wald’s reading of the critical period of the 1970s, particularly the 1973–74 Arab oil embargo, may prove controversial because it completely minimizes the role of politics in Saudi oil policy. “Most importantly for Saudi Arabia,” Wald writes, the 1973 Arab-Israeli War “provided an ideological cover for an economic assault on the world economy.” She describes the Arab oil embargo as a “business strategy” disguised as a political decision. This overlooks the fact that King Faisal Bin Abdulaziz Al-Saud was adamant about Washington playing peacemaker in the wake of the 1967 war. He made this clear to U.S. officials and oilmen many times over; indeed, King Faisal called on President Nixon to seek a comprehensive Israeli-Palestinian agreement from the earliest days of Nixon’s administration.
In the six months leading up to the October war, King Faisal warned U.S. media outlets that oil exports could be cut off. He sent his oil minister Ahmed Zaki Yamani to Washington to deliver the message personally. Previously, Faisal and Yamani had declared their reluctance to use the “oil weapon,” as Wald writes. However, that changed when Nixon sided with the Israelis and launched a massive airlift operation to re-supply them. Wald suggests that the embargo was half-hearted, and perhaps imposed for show, because it cut off U.S. refiners but not the U.S. Navy. Yet that telling trivia is not proof of duplicity. Rather, the decision speaks to Faisal’s priorities: he wanted the Americans to reconsider their support for Israel but he also wanted the United States to succeed in its fight against communism in Southeast Asia. Years of diplomacy and months of warnings leading up to the embargo suggest it was more than merely an economic power play to maximize revenues.
That episode aside, Wald’s account is fascinating and useful because it explains what makes the Saudi oil business so unique. It reads like a blueprint for Saudi success. Oil is the family business but one which the royal family entrusts to technocrats. Over time, as ARAMCO became a Saudi company, it also became an incubator for Saudi professionals in a country where most citizens are employed by the government. Today, ARAMCO functions like a private company but for the public good. In turn, it has become a symbol of national pride. At various points, Wald demonstrates that the Saudis have consistently taken a long-term view on oil matters. In pursuit of their goals, oil and otherwise, Saudi leaders have acted gradually and carefully over many decades. Such incrementalism has served them well when dealing with foreigners and constituents at home, especially those opposed to change.
Crown Prince Mohammed Bin Salman should read Saudi, Inc. precisely because his style is so different from those who came before him. Wald’s account makes this clear, albeit implicitly, since her book does not touch on recent events. The crown prince would find much to like in Saudi, Inc. ARAMCO’s corporate ethos is that which the crown prince wants to impose on his government. The results speak for themselves but Wald’s book stands out for its clarity and timeliness.
Matthew Reed is vice president of Foreign Reports, Inc. and a nonresident fellow at New America and the Payne Institute for Earth Resources at the Colorado School of Mines. On Twitter: @matthewmreed.
QUOTED: "Wald has done a tremendous job researching the history of the House of Saud and the evolution of Aramco and provides an in-depth analysis of the people and personalities involved."
"Saudi Inc. is an essential text for anyone who wants to understand the unique history of both Saudi Arabia and Saudi Aramco."
Saudi Inc.: The Arabian Kingdom’s Pursuit of Profit and Power
Book Review
By Daniel P. Collins
March 20, 2018 • Reprints
Book Review
Saudi Inc.: The Arabian Kingdom’s Pursuit of Profit and Power
By Ellen Wald – Pegasus Books
Publication date: April 2018, 263 pages
Reviewed by Daniel P. Collins
In Saudi, Inc.: The Arabian Kingdom’s Pursuit of Profit and Power, Ellen Wald provides a history of not only Saudi Aramco, but of the entire history of the Kingdom of Saudi Arabia. The two are tied so tightly together that it would be impossible to tell either story independently. So Wald begins with the early 20th century formation of the Kingdom under King Abdul Aziz ibn Saud, who had consolidated a massive land made up of warring tribes under his rule, naming it after himself.
A year after consolidating power Abdul Aziz was approached by American oilmen interested in exploring the land’s potential oil reserves. They already have struck oil in neighboring Bahrain and believed there could be large oil reserves under the sands of Saudi Arabia. After months of negotiation, a partnership was formed between the King and the forerunner of the Arabian-American Oil Company (Aramco).
Wald digs into how this arrangement evolved differently than other such arrangements that were not nearly as successful:
“As Aramco grew in the 1940s, Saudi Arabia produced more oil, and oil meant money. The king and his government knew this. They also knew that although Saudi Arabia was blessed with a valuable natural resource, the country was not industrialized and lacked modern infrastructure. Its population was largely uneducated and premodern. Saudi Arabia’s advantage was that it recognized its strengths and weaknesses in comparison to others.”
As an American with only a passing understanding of the region, Saudi Arabia has always seemed set apart from the other Arab nations—friends and foes — in the Middle East. It was a curious relationship that did not follow the same predictable patterns as other nations in the region that the United States was sometimes allied with, but often in conflict with as well. If this presented a curiosity to you as well, then Saudi Inc. will be a great learning tool.
Wald has done a tremendous job researching the history of the House of Saud and the evolution of Aramco and provides an in-depth analysis of the people and personalities involved.
When the Saudis eventually took control of Aramco, this is how Wald describes it: “This was not nationalization at gunpoint, like Iran’s nationalization of the Anglo-Iranian Oil Company in 1954, nor was it acquiescence by Aramco. In testimony before Congress, an executive from one of Aramco’s shareholder companies explained that ‘Saudi Arabia paid for [its shares].’”
The relationship between Saudi Arabian leaders and executives from Aramco and the oil companies that owned it was not always smooth. They were contentious, but contentious in a business sense. The Saudis learned from their partners and understood the value that they brought. The Saudis were constantly looking to maximize profits from their natural resources but did not delude themselves into believing that their partners were not adding value as some other nations did.
Wald explains that even during the 1973 oil embargo the Saudis were more concerned with business and ensuring their profitable relationships would last than succumbing to pressure for its neighbors, even though they agreed with them. Wald writes: “it seemed there was little to gain in manipulating oil supplies for politics. Profit came before regional or ethnic affinity, as it almost always had for Saudi Arabia. But, if the Saudis could use the political situation to increase profit and power, they could succeed in both regards.”
Wald points out that this attitude has been consistent from nearly the beginning, even going back to the creation of the State of Israel. She writes: “Even though King Abdul Aziz had expressed concern about the situation of the Arabs in Palestine before, … When he met with President Franklin Roosevelt in 1945, he made it clear to the Americans that their support for the Jews in Palestine would not threaten the U.S.-Saudi relationship.”
Wald explains that even after the Saudis took control of Aramco, it was run as a business and not simply as a resource for money to flow directly to the royal family and government. They had learned well prior that this way was much more profitable for everyone in the end.
Saudi Inc. is an essential text for anyone who wants to understand the unique history of both Saudi Arabia and Saudi Aramco.
About the Author
Editor-in-Chief of Modern Trader, Daniel Collins is a 25-year veteran of the futures industry having worked on the trading floors of both the Chicago Board of Trade and Chicago Mercantile Exchange. Dan joined Futures magazine in 2001, before the name change to Modern Trader, and in 2005 he was promoted to Managing Editor, responsible for overseeing all the content that went into Futures and futuresmag.com. Dan’s incisive reporting and no-holds barred commentary places him among the most recognized national media figures covering futures, derivative trading and alternative investments.