February 18, 2007	Sunday	Muharram 29, 1428

RIYADH Feb 17: The global energy equation may not be the same again. Meeting of minds in Riyadh, and then Doha, would have long term implications for the energy world. When President Viladimir Putin was landing at Riyadh, the great oil price fall of 1985-86, must have been up on his mind. Global crude prices fell precipitously then, from approximately $30 per barrel in late 1985 to just over $10 by mid-1986.

The drop in global crude prices then crippled the Soviet economy, like that of other oil producers.

The importance of oil and energy resources to the continued survival and clout of Russia thus could not have missed the president. Stabilising the energy markets for the sake of Russia, and indeed other producers, was thus a major subject up his sleeves when he landed here.

“Russia and Saudi Arabia should be allies instead of rivals on the world energy market. We know how rapidly the world economy will develop, and how much resource it needs now and how much it will need in the future," Putin said in Riyadh adding, "Russia and Saudi Arabia are the world's leading energy producers and exporters, and here it is easy for us to find common ground," the Russian leader emphasised.

The visit of Viladimir Putin to Riyadh was an historical first in many ways. Some analysts, here in Dhahran, the virtual global energy capital, felt on his arrival and the literal red carpet rolled for him, recalling the August 2000 arrival of Hugo Chavez of Venezuela in Riyadh.

And energy world has never been the same since then.

Venezuela, a well known quota buster within the Opec ranks until then, has since led the way in obtaining ‘fair price’ for crude in the world market. That Chavez visit is being termed today by analysts as a turning point in Opec history.

The visit of Viladimir Putin to Riyadh could also be another turning point, another milestone in the overall energy equation. With oil prices somewhat falling again and the Russian relations with the United States cooling, Moscow knows very well how prudent and necessary it is to keep oil money flowing into its coffers.

Things have indeed turned full circle since the cold war days, when the communist USSR was an ideological pariah to most in the region. The US today is the sole surviving super power and many throughout the region feel deeply let down by the US policies.

And Russia could be a major player in this new equation, most in the Arab streets concede. Hence the need to coordinate with Russia is equally important for this region too.

On the other hand, protecting Moscow’s interests in the volatile energy markets, is key to Kremlin’s domestic prosperity and international clout, many argue.”

Putin was attempting to protect this soft belly during the trip, some are arguing here.

And when President Putin sat down with Qatar's Sheikh Hamad Khalifa al-Thani in Doha, it was a meeting of two natural-gas powers. Qatar has the world's third-largest natural gas reserves after Russia and Iran.