30._Bidding_for_our_Life_Revised_F09

30._Bidding_for_our_Life_Revised_F09 - 30. Bidding for Our...

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30. Bidding for Our Life
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The Embargo The oil embargo was made up of two parts: Rollbacks on production +%5/mo. Specific bans on oil to the US and Netherlands; then Portugal, South Africa and Rhodesia (“Unfriendly”) “Neutral”, “preferential/friendly” and “most favored” OPEC was able to cut production and maintain a A net shortfall of ~ 5 mbpd, great uncertainty
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Panic Recipe for panic: war and violence, supply cutbacks, embargoes, shortages, desperate consumers, etc One refiner said, “We weren’t bidding for oil, we were bidding for our lives.” The price of oil shot up to over $15 a barrel. American gas prices rose by 40%. How would the world economy and political institution weather this storm?
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US motorists, who used to drive until their gas gauge read “empty” now filled the tank constantly afraid that oil would run out. This created long lines and up to TWO HOUR waits at gas stations. Panic buying meant extra
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This note was uploaded on 04/19/2011 for the course EGEE 120 taught by Professor Considine,timothy during the Spring '07 term at Pennsylvania State University, University Park.

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30._Bidding_for_our_Life_Revised_F09 - 30. Bidding for Our...

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