Crude oil is such an essential part of our modern lives that we can often take for granted that our supply will remain constant. Small, unstable countries often hold large quantities of this precious resource, as well as the ability to reduce its supply at a moment's notice. Therefore, the discovery of oil in Saudi Arabia caused a dramatic increase in the country's revenue. Saudi Arabia's newfound wealth has been exploited to serve the political and economic needs of an opportunistic Islamic monarchy, while the concerns and rights of its subjects have been consistently sidelined. Through a global trade network, Saudi Arabia found great prosperity at the cost of sacrificing its founding principles. The stability of the Arabian Peninsula created the opportunity for the newly formed Saudi Arabia to encourage foreign investment, and thus the eventual oil industry. The Arabian Peninsula of the early 20th century was characterized by diverse and militant Islamic groups (Federal Research Division, 2004, p. 10). Although oil was discovered in 1938, Saudi Arabia did not begin to reap its benefits and address its problems until after World War II. Oil has often been described as a "transformative force," and this description is easy to apply to Saudi Arabia. Before World War II, annual government revenues barely reached half a million dollars (Mansfield, A History of the Middle East, 1991, p. 281). In 1950, revenues reached $56 million, and in 1956 the unprecedented figure of $200 million. Although oil revenues have been observed to bring positive effects to Saudi Arabia, large amounts of money have the inherent ability to corrupt leaders and produce negative results. effects. The extravagance of the Saudi royal family has attracted particular attention...... middle of paper ......tment of Economics - Boston College. Harper, R. A. (2003). Saudi Arabia. Chelsea House Publishers.Human Rights Watch. (2004, July 15). Saudi Arabia: abuse of foreign workers. Retrieved August 20, 2008, from Human Rights News: http://www.hrw.org/english/docs/2004/07/15/saudia9061.htmLewis, B. (1995). The Middle East - 2000 years of history from the rise of Christianity to the present day. London: Phoenix.Mansfield, P. (1991). A history of the Middle East. Victoria: Penguin Group.Mansfield, P. (1992). The Arabs. Victoria: Penguin Books. Taylor, J., & van Doren, P. (2003, October 17). It's time to end the oil embargo of 1973. Retrieved July 30, 2008, from the CATO Institute: http://www.cato.org/pub_display.php?pub_id=3272The Saudi Contradiction. (2001, October 30). Wall Street Journal.Wells, C. (2003). Understanding Saudi Arabia. Indianapolis: Penguin Group.