29._The_Oil_Weapon_Revised_S10

29._The_Oil_Weapon_Revised_S10 - 29. The Oil Weapon 1 Major...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
1 29. The Oil Weapon 29. The Oil Weapon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Major Themes Major Themes Big change: Lack of spare capacity in U.S. OPEC gains market power & uses it for political reasons World economy shocked by high oil prices First oil price shock: 1973-74 Second shock, 1979-1981
Background image of page 2
3 No More Quotas No More Quotas 1969 Nixon entered office, oil quotas under fire Imbalances from price controls on oil Discouraged domestic oil production Encouraged and stimulated consumption In 1973, with a gasoline shortage on the horizon, Nixon abolished the quota system. James Akins (Foreign Service ) Officer): “By 1975, we will have entered a permanent sellers market.”
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 The Wolf is here The Wolf is here James Akins His report was titled “The Oil Crisis: This Time the Wolf Is Here”. Consumption growth should be reduced Greater domestic production Import from secure supplies Report filled with ideas to counter growing energy threat Market price soared past the posted price. Tightening market conditions Fall 1973; no spare capacity
Background image of page 4
Anwar Sadat Anwar Sadat Nasser died in 1970 and was replaced by Anwar Sadat. Sadat was a nationalist and didn’t pursue Nasser’s ideal of pan-Arabism. He wanted peace but needed leverage, Clausewitz’s dictum: “War was the continuation of politics by other means.” Sadat began to plan the war with Syria’s President, Hafez al-Assad. King Faisal of Saudi Arabia
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 20

29._The_Oil_Weapon_Revised_S10 - 29. The Oil Weapon 1 Major...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online