The role of the GPs and the oil

What did the Seven Sisters do in 1959?

They raised oil prices without concerning consulting the Arab states leading them to lose $132 million

What was the impact of the Seven Sisters raising oil prices in 1959?

OPEC was formed in 1960 forcing the oil companies to consult with the oil states if they were going to change prices. The SA, Kuwait and Iraq went on to create their own national oil company

What did the Arab states dissatisfied with?

They weren’t getting enough profits from the concessions

How much more did ARAMCO take in profits over Saudi Arabia?

x3 more

What are concessions?

Licences that were granted to oil companies to extract oil for a fee

What was the impact of the 1967 war?

The Suez Canal was shut until 1975, forcing oil tanks to take a longer route to reach Europe leading to shortages

When did oil become a major factor in the Arab-Israel wars?

Saudi Arabia became the richest oil supplier and the main financer of the PLO and an outspoken critique of Israel

When did Saudi Arabia threaten the US with an oil embargo due to the Arab-Israeli conflict?

April 1973

What was the impact of the oil embargo?

Global shortages and recessions - Arab political strength changed the way the GPs interacted with the Arab states