Earlier quoted context omitted.
The tensions don't exist because of its oil. They exist because of their natural resources which may or may not include oil. Look all over africa for examples. Being rich in natural resources is a bit like being a really hot girl around a bunch of abusive predatory men. They'll shower her with gifts and tell her how amazing she is until she says: "no, I don't want to sleep with you" and all hell breaks loose.
western economists unironically call it the resource curse: https://en.wikipedia.org/wiki/Resource_curse examples include Saudi Arabia, Norway and Alaska. Oh no wait bad examples.
Saudi Arabia, Norway and a few Gulf min-states (Kuwait, Qatar, Bahrain) are the rare counterexamples that kind of prove the rule. There's a great FT article[1] about the Iraqi man who helped lead Norway's oil revolution in the proper direction, and it was really not obvious. Why Saudi Arabia, Qatar, Kuwait, Bahrain managed to use their resources successfully (of course to an extent a matter of debate, human rights being a big problem in most of those places) and other dictatorships failed, even in similar scenarios (same religion, royals) is a tough one to answer.
https://www.ft.com/content/99680a04-92a0-11de-b63b-00144feab...