The "Have-Oil" and the "Have-Nots"

Skyrocketing oil and natural gas prices in the second quarter of this year led ExxonMobil to report the highest profit ever by an American company. In spite of falling production and rising operating costs, Exxon brought in a 138 billion dollars in revenue and reported an astounding net income of 11.7 billion dollars.

I've spent several hours listening to experts on various business shows on television trying to explain why oil prices keep rising and the relationship between a depreciated dollar and oil prices, Peak Oil, and so on. I'm not an oil expert but why is it that whenever the U.S. rattles the saber towards Iran, oil prices jump a notch or two? And who is profiting from all of this?

Meanwhile, ExxonMobil and its stakeholders are not the only ones profiting from this petro-bonanza. Oil producing countries in the Middle East are swimming with cash and they're spending most of it on construction.

At a time when U.S. banks and financial institutions are in the midst of the worst housing market in the U.S. since the Great Depression, financial institutions in the Middle East are prospering due to ongoing construction frenzy. This boom is most obvious in Dubai, in the United Arab Emirates, but it is also visible in most of the Arabian Gulf states such as Abu Dhabi, Bahrain, Kuwait, Qatar, and Saudi Arabia. According to a construction expert, "more than 1/3 of the cranes in the world are located in that region."

Despite this petro-bonanza, many construction companies in the Arabian Gulf are exploiting foreign laborers, mostly from South Asian countries such as India, Pakistan and Bangladesh. To keep up with this construction boom, foreign workers report exploitative working conditions, such as forced confinement, nonpayment of wages, denial of food, and excessive working hours with no rest days.

Over the past few days, more than 1,000 Bangladeshis have been deported from Kuwait, and hundreds more face a similar fate due to a recent strike staged by Asian foreign workers in Kuwait to demand better pay and working conditions.

The strike in this major oil exporting Gulf Arab state, and a major U.S. ally I must add, came against a backdrop of soaring inflation and high prices. Workers have been complaining that they couldn't survive on their salaries once labor agents took their cut or unscrupulous employers deducted housing, medical and meal costs. Some Bangladeshis returning to their countries last week said they had been beaten and kept in appalling conditions after being accused of taking part in the protests.

As a side note, I read in the British press that a rich Qatari sent his Lamborghini on a 6,500-mile round trip to Britain for a service. The $ 400,000 supercar was put on a scheduled flight from Qatar to Heathrow - then flown back after the oil check.

This made me one wonder if we're just going through a phase...the era of the "haves," and the "have-nots" of oil.

Jamal Dajani produces the Mosaic Intelligence Report on Link TV

Follow Jamal Dajani on Twitter: www.twitter.com/jamaldajani

Comments

[Tom95134]

I find this interesting, "...construction companies in the Arabian Gulf are exploiting foreign laborers, mostly from South Asian countries such as India, Pakistan and Bangladesh." The major reason construction companies use foreign laborers is that doing any manual labor by middle easterners is not very common. This has been the case for decades and whenever they can use outside labor they will. It is essentially that "work" is something that they don't do and will not do until their government takes away their "oil teat" and stops giving them either money or subsiding their purchases. An example is the very low cost of gasoline to people that live in the middle east.

[justice2008]

One additional comment: how many starving Palestinians in Gaza the rich Qatari could feed with the cost of one oil change for his lamborghini?

[mjt218]

It's interesting to note how upset many Americans were of Chinese non-action in Sudan, where it has oil interests. I realize that these construction practices do not amount to genocide, but, it seems to be a double standard that America, as a country, is willing to ignore.

[texfly]

So why aren't we getting the meassage? READ MY LIPS:

We can create all of the power we need from just wind. For cars, for heat, for AC, you name it. We can do the same with solar. And we can do it again with tidal. If we wanted, we could become the energy barons of zero-carbon energy and zero-nuclear. And all with today's existing technology. We don't need new developments, although it will help in the long run. But there's no rush. All we need is a revitalized electric grid, a national will, and the infrastructure to manufacture the necessary hardware. If we don't do the manufacturing someone else will. Not Europe, not Korea nor Japan. We'll have to wait for Russia, China or India ro do it. When Obama speaks of CHANGE, I see 100's if not 1000's of new factories making the pieces for a renewable energy economy. I see 100's of plants making electric cars, busses and trucks. I see boom times ahead. I see a complete independence from foreign oil and a large drop in demand for our existing oil supply. The future looks bright to me. Do we have the courage and will to do it?

[justice2008]

It's a nice thought but I do not think that OIL companies will allow this? They're not going to let go of their wealth to save the environment. McCain is talking about drilling in Alaska and in our oceans.

[mjt218]

We're already doing that

[newsjunkie5]

Naive to think that CHANGE will come from a politician.

CHANGE will happen when there will be no other option. After we so greedily deplete our planet of ALL of its RESOURCES.

This is when the REAL CHANGE will happen...but I fear it will not be positive change.

[jad114]

You're naive If you think that Obama will set us free from oil addiction.

[leonardox1]

That's right but he will be better than McCain another George W. who wants not only oil to drill for oil in Alaska but wants to pollute our environment with nuclear power plants.

[leonardox1]

What will happen when these countries run out of oil? They have no industry to speak of, no agriculture.

[mjt218]

Dubai, for one, is trying to take advantage of their current profits to establish themselves as an economic, cultural, entertainment, and educational center.

http://money.aol.com/special/amazing-dubai-building-photos

The Louvre, medical institutions, and several of the major business schools are establishing branch campuses there.

Air Emirates is becoming one of the premier world airlines, and it is positiong Dubai to be a long term hub for travel from West to East.

And all on the backs of basically unpaid labor. . .

[jad114]

I bet George Bush doesn't tell his bodies in Kuwait and Saudi Arabia tot reat their foreign workers well. This is disgusting!

[Daughter2]

"What will happen when these countries run out of oil? They have no industry to speak of, no agriculture."

Maybe, God-willing, there will be peace in that part of the world, so that people won't, as my grandparents did after WW I (yes, that's WW ONE) become refuges going from country-to-country looking for a safe haven. For the descendants of those people, such as myself, this is unbelievably deja vu. It was the oil then, and it's the oil now.

[newsjunkie5]

Great article Mr. Dajani. Very informative. I learned many interesting facts in your report.

The picture of the Qatari's Lamborghini is a really nice shot. Although it is a sad reminder of how frivolous the extremely wealthy can be, while the poor in this world struggle everyday just to feed their families.

Like you titled your article...the haves and the have nots.