Question

Describe how did Saudi Arabia and other gulf countries became rich by exporting crude oil. And why is Russia and Venezuela is a small country with small population and experiencing population decline is not rich despite having such a huge oil reserve. ​Does Russia benifit from rapidly declining population ?​

Answer 1

Answer:

Middle east has the geographical advantage which these countries don't have. Biggest Consumers of Oil Resources after USA are India and China which are relatively nearer to MIddle East therefore Crude oil is cheaper for these countries thus leading to higher production and higher profit for middle eastern country. Although, Oil reserves in Venezuela are higher than the saudi but political instablity, Corruption ,geographical location and lack of technological advancement has made it difficult to produce in contrast with Other Oil Rich countries like Saudi Arabia.