GEOG 122 Lecture Notes - Lecture 5: 1973 Oil Crisis, Six-Day War, Geopolitics
Document Summary
East (me: middle east has 2/3 of conventional oil reserves, leading producer = = highly correlated with economic development: north. U. s. broken up in 1911 (cid:862) e(cid:448)en isters(cid:863) multinational corporation oligopoly to 1973. Opec formed in 1960s and included most middle east producers by 1970: economic & political objectives to reduce the role of the 7 sisters and increase their control of the market, post-war boom. Oil price dropped by 40% in real terms 1950-1970 in north america. 1973 oil shock and abrupt end of post-war boom. Opec started to mobilize following arab defeat in 1967 war with israel and acted after (cid:1005)(cid:1013)(cid:1011)(cid:1007) defeat: refusing to ship oil to countries that had supported israel raising price of oil. Oil used strategically for economic and political objectives. Opec accounted for (cid:1007)5% of (cid:449)orld"s oil production in (cid:1006)(cid:1004)(cid:1004)(cid:1012: consequences of 1973 oil shock, west lost control of major strategic commodity.
