EGEE 120
Oil: International Evolution

Lesson 4 Readings

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Reading Assignments for Lesson 4

Students are to read chapters from the text - The Prize and The Quest. The sections not listed are optional.

Chapter 11 From Shortage to Surplus: the Age of Gasoline

Sections to Read

  • Introduction
  • "A Century of Travel"
  • "The Magic of Gasoline"
  • The Tempest in the Teapot
  • The Tycoon
  • The Rising Tide

Major Themes to Ponder as You Read

  • The roaring 1920s, rising tide of gasoline.
  • Real concern about supplies, but additional discoveries once again contributed to a surplus.
  • Oil is different from other commodities.
  • Rule of capture & unitization.
  • More discussion of government regulation.
Chapter 12 "The Fight for New Production"

Sections to Read

  • Introduction
  • General Gomez's Venezuelan "Hacienda"
  • Duel with the Bolsheviks
  • Price Wars

Major Themes to Ponder as You Read

  • War illustrated oil = power.
  • Oil also was a symbol of sovereignty.
  • Ownership versus investment; Mexico exerted ownership over oil reserves at the expense of investment.
  • Venezuela encouraged investment.
  • Soviet Union eventually nationalized oil; companies tried to unite, but they played one off against the other.

From text - The Quest

Chapter 5: The Petro-State

Sections to Read

  • Crisis for Exporters
  • Reversed Midas Touch

Major Themes to Ponder as You Read

  • Importing vs Exporting concepts.
  • Impact of sudden flood of oil exports.
  • Lasting challenges with exporting oil.
  • Protection measures used by governments.
Chapter 13 - The Flood

Sections to Read

  • Introduction
  • Anarchy in the Oil Field
  • The Government Acts
  • Stability

Major Themes to Ponder as You Read

  • The Black Giant and the oil flood in East Texas.
  • Impact of overproduction and "hot oil" on prices.
  • Insufficient state control and the need for cooperation and coordination with Feds.
  • Irony in oil industry between 1920 and 1932.
Chapter 14 - "Friends" -- and Enemies

Sections to Read

  • Introduction
  • The Hand of the British Government
  • "The Problem of the Oil Industry"
  • Discord with in "Private Walls"
  • Nationalism
  • The Shah's New Terms
  • The Mexican Battle

Major Themes to Ponder as You Read

  • International oil cartel forms.
  • Rising nationalism.
  • Increasing tension between producing countries & oil companies.
  • Efforts to expropriate & renegotiate concessions or contracts.