At least, that is what it looks like to those who track what didn’t happen last week. The Saudi monarch announced that there would be no changes in the Saudi cabinet.
Is “no news” good news?
Not for Cheney & Co.
In January 2007 there was considerable speculation that a major cabinet shuffle was in the works:
King Abdullah of Saudi Arabia is considering a major Cabinet reshuffle soon, the first since he ascended to the throne of the oil-rich kingdom, diplomats and Saudi media said Monday.
The reshuffle may include key posts such as Foreign Minister, which has been held by Prince Saud al-Faisal for more than 30 years, and the influential Oil Minister, they said….
Saudis who have intimate knowledge of the discussions regarding the possible reshuffle said al-Faisal, who has had health problems, might be replaced by Crown Prince Sultan’s son Prince Bandar, a former ambassador to Washington and current secretary of the National Security Council…
The news of the reshuffle comes a month after the resignation of Prince Turki al-Faisal as Saudi ambassador to the United States. His resignation, after just 15 months as ambassador to Washington, sparked speculations about a power rift within the royal family.
But the King’s refusal to name Bandar Foreign Minister might only represent the tip of the iceberg.Â The re-appointment of the Saudi oil minister, Ali Naimi, may also represent a significant snub.
Back on April 26, 2003, the Economist ran a story (“Regime change for OPEC? – Ali Naimi and the problems facing OPEC”) that seemed to suggest that ExxonMobil had been actively pressing for Naimi’s resignation.
[W]ithin Saudi Arabia… well-sourced rumours this week suggested that Mr Naimi is about to be forced out of office…
So, why might the Saudis even think of firing Mr Naimi, who has been their oil minister since 1995? The most plausible explanation is that he has lost a power struggle over the role of foreign investment. For years, a faction led by the foreign minister has been pushing to open up the country’s natural gas and power sectors to foreign money. Even though this would certainly not involve the full privatisation of Saudi oil into foreign hands, Mr Naimi saw this proposal as an attack on his beloved Aramco and fought it tooth and nail.
He may have lost this battle soon after Saddam lost his. It seems that Exxon Mobil’s formidable boss, Lee Raymond, who has long had a testy relationship with Mr Naimi, recently complained via back-door channels to the powers in the House of Saud about the oil minister’s obstructionism on the gas deals – suggesting that investment dollars might flow instead to newly liberated Iraq. If the rumours are indeed true, this prospect appears to have worried the Saudi royals enough for them to move against Mr Naimi.
I have argued that the Saudi “foreign investment” story referenced by the Economist may help explain some of the tension between Cheney and King Abdullah.
Naimi has also presided over the Saudi-backed OPEC oil price hikes of recent years, even as Cheney’s Saudis allegedly want to flood the oil market as part of a campaign to undermine the Iranian regime.
That doesn’t appear to be in the cards, at least for now.Â Prepare to pay at the pump.Â Abdullah is King.