By Melvin A. Conant
Conant explores how the transformation of oil from a advertisement commodity to a strategic uncooked fabric have replaced the face of global power politics. In an more and more interdependent international, Conant questions the proper of any kingdom to withold very important offers from different international locations.
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Additional resources for Access to Energy. 2000 and After
This occurred while some producers in the Middle East were extracting advance tax payments; the difference between the two approaches illustrates the heavier clout of Venezuela and the greater artfulness of its tactics. By the end of the decade, the Venezuelan Oil Corporation was established to become the primary instrument of Venezuelan government oil operations. Concession System / 43 The world oil market was then in surplus and the international majors felt compelled to reduce their posted price, which they did unilaterally, without the agreement of producer governments.
As part of this endeavor, NIOC formed partnerships and concluded contractual agreements with foreign firms, usually maintaining an equity interest. In addition, in 1964, NIOC took complete control of the liquid natural gas industry in Iran, while in the international arena it moved to gain refining interests in India, the Republic of South Africa, Europe, and black Africa. THE 1970 LIBYAN CRISIS By 1970 ever-escalating levels of petroleum consumption in the industrialized world, combined with the closure of the Tapline and the Suez Canal, led to a world supply/demand/logistics crisis of growing proportions.
This fact has not been lost on Saudi Arabia, Iran, or Venezuela who are uneasy over how the advent of Mexican oil in sizable quantities into the international marketplace could affect their market shares in the United States. If Mexico's production does rise to the most optimistic predicted levels, Mexico will undoubtedly find itself under greater pressure from OPEC to join the organization because of the prospect that most of Mexico's oil might flow to the United States. Such a large flow (conceivably, by the late 1980s, 2 to 3 MMB/D or some 20-25 percent of United States daily import needs) of Mexican oil into the American market would have obvious ramifications, since the United States would have partially diverted the source of its imports away from the Middle East, thus reducing somewhat the potential for conflict with its major European allies and the Japanese over Middle East supply.
Access to Energy. 2000 and After by Melvin A. Conant