The Oil Embargo of 1972-1973 - 1247 Words

Introduction In our society, oil is one of the core requirements. Whether it is to drive from a point A to a point B or to fly between distant countries, oil always had a fundamental impact on our civilization. Its impact is felt, on a daily basis and under many aspects. Not a day goes by without hearing about the Brents changing undulation, on the markets in New York or London. Some have thought that the desire to gain control of Irans oil resources was the core of the CIAs intervention in that country, in the 1950s. In recent years, it was considered, by left-wing groups, that the war in Iraq was based upon an attempt of foreign control over the Iraqi petroleum resources. Even though both events have an unquestioned place†¦show more content†¦They formed the Organization of the Petroleum Exporting Countries, or OPEC. Since the OPEC was instated to protect the interests of oil producers, it could be seen as an example of regional integration. The OPEC is widely considered, throu ghout the world, as a cartel. This would be an intellectual misconception. The concept of cartel would consider oligarchies limiting competition and monopolies increasing prices. Oppositely, many international oil producers are not members of the OPEC. These non-members saw a fourfold increase in the oil prices, during the 1973 oil embargo. In A history of the modern Middle East, William L. Cleveland and Martin Bunton stated that the immediate objective of the OPEC was â€Å"to utilize the collective bargaining power of its member states to pressure the Western oil companies to increase oil prices.†. However, the birth of the OPEC did not occur, overnight. In 1947, the Venezuelan and Iranian delegations held talks in Washington, to coordinate their oil policies. In OPEC: Past and Present, Abdul Amir Q. Kubbah stated that the Arab league had a project of creating an â€Å"association of Arab oil-producing countries.†, since 1945. The first OPEC-type grouping oc curred in 1953, when Iraqi and Saudi delegates joined forces. The agreement between these two states was the first to involve cooperation from both governments. The Arab League held a summit in Cairo, in 1959. During that summit, â€Å"views have been exchanged concerning theShow MoreRelatedPresident Nixons International and Domestic Challenges Essay1584 Words   |  7 PagesWar balance, putting the U.S. and China against the Soviet Union. Several months later, Nixon traveled to the U.S.S.R. and met with Leonid Brezhnev and other Soviet leaders. The result this trip was the signing of the Antiballistic Missile Treaty of 1972. The treaty restricted the number of ICBMs each nation could manufacture and stockpile and it was part of SALT (Strategic Arms Limitations Talks). Nixon’s visits to China was a triumph because it contained the Soviet Union from expanding and gainingRead MoreHistorical Background And Political Climate. 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The organization was modeled after the Texas Railroad Commission and formed at the Baghdad Conference in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela . The founding five counties were later joined by Qatar, Indonesia, Libya, the United Arab Emirates, Algeria, and Nigeria . At the time of its creation most industrial countries were immensely dependent on the oil imported from the region ofRead Mo reEnergy Consumption And Economic Growth1952 Words   |  8 Pageson oil prices have identified two main categories: those on developed oil importing countries, which comprise most of the literature, and developing oil exporting countries, which are scarce due to a lack of data in these countries. More specifically, I have categorized the literature into three categories: First, I analyse studies on developed countries, which are oil importers. Second, I explore the research on developing countries, which are oil exporters. In oil exporting countries, oil revenueRead MoreA Sunday Afternoon725 Words   |  3 Pages33 million Americans are interested in electric vehicles. 1970s Concerns about the soaring price of oil -- peaking with the Arab Oil Embargo of 1973 -- and a growing environmental movement result in renewed interests in electric cars from both consumers and producers. 1972 Victor Wouk, the Godfather of the Hybrid, builds the first full-powered, full-size hybrid vehicle out of a 1972 Buick Skylark provided by General Motors (G.M.) for the 1970 Federal Clean Car Incentive Program. The EnvironmentalRead MoreImporting Goods And Products From China1419 Words   |  6 PagesAmerican oil consumption in the form of gasoline and other products was rising even as domestic oil production was declining leading to an increasing dependence of oil imported abroad. The assumptions were demolished in 1973 when oil embargo imposed members of Organization of Arab Petroleum Exporting Countries (OAPEC) led to fuel shortages and sky-high prices throughout much of the decade. Members of OAPEC proclaimed an embargo of oil shipments to the U.S. After three months the price of oil shot fromRead MoreThe Importance of Oil in Saudi Arabia Essay848 Words   |  4 PagesCrude oil is such an essential part of our modern lives that we can often take for granted that our supply of it will remain constant. Small, unstable countries often hold great amounts of this precious resource, along with the ability to cut our supply in a moment’s notice. Therefore, the discovery of oil in Saudi Arabia caused a dramatic increase in the revenue of the country. Saudi Arabia’s newfound wealth was exploited to serve the political and economic needs of an opportunistic Islamic monarchy