EGEE 120
Oil: International Evolution

Lesson 9 Readings


Reading Assignments for Lesson 9

Students are to read Chapters 28 through 30 of the text, The Prize, and selections from The Quest.

Chapter 28 - The Hinge Years: Countries Versus Companies

  • Introduction
  • Anglo-American Retreat
  • Environment Impact
  • The Alaska Elephant
  • The Libyan Squeeze
  • Participation: “Indissoluble, like a Catholic Marriage”
  • Leapfrogging Prices

Consider the following questions:

  • What do you think of the Shah?
  • What was the role of nationalism in the conflicts and agreements?
  • Explain the challenges with new producing locations to the overall balance.
  • How did the oil countries play the oil companies on prices?

Chapter 29 - The Oil Weapon

  • Introduction
  • The United States Joins the World Market
  • The Wolf is Here
  • The Oil Weapon Unsheathed: Faisal Changes His Mind
  • Nothing Further to Negotiate
  • The Third Temple Is Going Under
  • Embargo

Consider the following questions:

  • What enabled the Arabs to use the oil weapon?
  • Why did they consider using the oil weapon?
  • How did OPEC control of the price of oil change the United States?
  • Consider the impact of non-oil related crisis on the price of oil.

The Quest

  • Chapter 5: the Oil War
  • Chapter 8: The Tightest Market

Consider the following questions:

  • Why did the relationship change between former pals, Venezuela and Saudi Arabia?
  • How can oil exporting countries balance the international cooperation with their profit?

Chapter 30 - "Bidding for Our Life"

  • Introduction
  • "The Loss"
  • Panic at the Pump
  • "Equal Misery"
  • A New World of Prices
  • Alliance Strained
  • Sheathing the Oil Weapon

Consider the following questions:

  • Why was OPEC able to cut production and still make profit?
  • What was the effect of the embargo on the psyche of the American consumer?
  • How about the relation between the Western Allies?
  • How was the Japanese industrial structure transformed by the oil embargo or great oil shock?

The Quest

  • Chapter 4: The Jakarta Syndrome
  • Chapter 4: The Shock

Consider the following questions:

  • How many times is a shock illustrated?
  • When comparing the shock illustrations over the semester, how many different reasons spark the shocks?
  • How has a shock helped the industry? Or hurt industry progress?