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Unformatted text preview: The Globalization of Oil, 1986-2010 1. Low Crude Oil Price Regime, 1986-2000-Conservation and diversification (on consuming nations)-OPEC loss of unity: Larger OPEC reserves you have, more production than that, Venezuela and Kuwait were known for having a quota of production and would produce more than asked for)-Instability in Middle East: Iran and Iraq war, Iraqi invasioon of Kuwait in the 90s. Saddam Hussain was upset that Kuwait was violating quotas and had common oil reserves that argued to belong to Iraq. Question: How is the new international energy order different from the old international energy order? a) National oil companies NOC control most world reserves and rising economic powers, china and india are competing with western nations for access to oil. b) the seven sisters have regained ownership of the majority of the worlds oil supply IOC International oil companies (chevron, etc.) NOC national oil companies (state owned) Iran and Saudi have the largest amount of total oil reserves.-Oil mega-mergers: BP aquired Amoco and Arco, exxon with mobil, royal dutch and shell did not merge however restructured, total (fina, Elf), conoco phillips, chevron and texaco. 90's the profits were down, pressure from shareholders to bring in profits. BP is self insured. insurance is too costly, so they in sure themselves. Chevron has been buying back capital in revent year. increased bargaining power with OPEC as a "Junior partner" and maintaining stable crude prices....
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- Spring '09