We started this lesson with the discovery of East Texas oil and how overproduction and hot oil led to the fall in crude prices and the unsuccessful actions taken by the states of Texas and Oklahoma to stabilize the market. We followed that up with a review of how the federal government eventually had to step in and work with the states to regulate production through the so-called unitization and pro-rationing. We then discussed the Achnacarry quail hunt and the “As-Is” agreement to address the global overproduction and overcapacity. Note that this was even two years before the East Texas oil! The emergence of nationalism in Persia and Mexico and the Mexican expropriation that sent considerable fear through the oil industry were discussed. Finally, we introduced how oil was discovered in Arabia (Bahrain, Kuwait, and Saudi) and the difficulties posed by Calouste Gulbenkian and the Red Line agreement before that happened. The different objectives of the American and British companies that made America eventually win the fight for oil domination in the Middle East becomes evident after this lesson.
Time for the Lesson 5 Quiz!
You have finished Lesson 5. Once you are confident that you have reviewed the materials carefully and you have fully participated in the lesson discussion activity, you should be ready to take the Lesson 5 Quiz.
- Go to Canvas.
- Click on the Module tab.
- Scroll down to Lesson 5.
- Enter the "Lesson 5 Quiz" and begin!
- The format of the lesson quizzes is multiple choice questions. The quizzes will be based on the book, the online lesson notes, and videos. Quizzes typically are made available to take any time from Friday afternoon until the following Tuesday.
Tell us about it!
Each week an announcement is sent out in which you will have the opportunity to contribute questions about the topics you are learning about in this course. You are encouraged to engage in these discussions. The more we talk about these ideas and share our thoughts, the more we can learn from each other.