And as far as oil goes...
The statement was simply to point out that a lunatic tyrant in a nation of extensive natural resources and potential wealth is going to be a lot more dangerous than one ruling a small African nation whose primary export is wasting diseases. Don't read anything more into it than that.
The original point, which seems blindingly obvious to me, yet seems to have escaped everyone, is that a crazed lunatic in Uday's position has a lot more potential for doing damage than a crazed lunatic like Jeffrey Dahmer.