1970s Oil

The Seven Sisters

Seven major oil companies that dominated the world oil market

How long do The Seven Sisters dominate oil

1920s to 1970s

What did the Seven Sisters emerge from

anti-trust breakup of Standard Oil

Countries of origin for Seven Sisters

US

UK

Significance of Seven Sisters

provided the template for the development of modern multinational corporations

nuance for template for multinational corporations

Seven Sisters are not just about oil, they were a model for how global capitalism would work

How were profits shared between West and Middle East early

Western corporations extract oil in the Middle East keeping most profits, offering modest royalties to producing countries

what kind of term is the Middle East

colonial geographic term

What does colonial geographic term suggest

the region’s modern shape was imposed from outside

Saudi Arabia

emerged as one of the most oil rich states in the world

Saudi Arabia significance

relationship with the US becomes central to American energy and security

Creation of Israel characterization

inseparable from oil politics and US foreign policy

US foreign policy and Israel

US supports Balfour Declaration

FDR assures US will consult Jews and Arabs before intervening

UN partitions Palestine into two states

US supports Israel

Nakba meaning

Catastrophe

What does The Nakba refer to

refers to displacement of Palestinians during the creation of Israel and the US not acknowleding them

Iran significance

best illustrates how oil shaped Western intervention

Iran in the beginning

created as a modern state after WW1, as powers realigned and Turkey weakened

Iran after WW2

Great Britain and the US consolidated commercial interests in Iran’s oilfields

The Shah after WW2

garnered support from the West since he was committed to oil development

Mohammad Mosaddegh

Iranian nationalist and opponent of Reza Shah

What 2 things does Mosaddegh do that angers the powers

opposed Soviet efforts to create a concession in Northern Iran

nationalizes British oil holdings in Iran (Anglo-Iranian Oil Company)

1953 Iran Coup

US and Britain orchestrate a coup overthrowing Mosaddegh and reinstated pro-Western Shah Reza Pahlavi

Why did the US and Britain carry out the Iran coup

in order to secure oil interests

What did the 1953 Iran Coup plant the seeds for

1979 Iranian Revolution

The Shah’s modernization efforts

Education, women’s rights, western dress

Impact of the Shah’s modernization efforts

They become identified with colonial oppression

1956 Suez Crisis

Egypt nationalized the Suez Canal leading to Britain, France, and Israel attacking

Result of the Suez crisis

Power vacuum, Britain and France cannot control the region so the US steps in and forms the Eisenhower Doctrine

Eisenhower Doctrine

pledged the US to defend the Middle East against Soviet influence

Eisenhower Doctrine Importance

locks US in permanent military and political commitment to the Middle East driven by oil

OPEC

Organization of Petroleum Exporting Countries

Purpose of OPEC

get market control from the Seven Sisters and return oil revenues to the countries that hold it

How did OPEC gain market control of oil

Countries agreed to coordinate production decisions

OPEC as more than an energy cartel

OPEC’s goal of regaining market control and oil revenues shows economic decolonization

American Car Culture as a setup

Americans built their lives around cheap oil, cultural and infrastructural dependence on it made oil shock so devastating

Peak Oil

prediction that lower 48 American states would have peak oil production in 1970

Hubbert

came up with peak oil

Peak oil and oil shocks

Americans worry more, was Hubbert correct

Yom Kippur War

Arab coalition attacks Israel to get their land back, Israel ends up pushing them gaining the West Bank

The Yom Kippur War importance

Nixon requests congress provide 2.2 billion to aid Israel leading to OAPEC instituting an oil embargo on the US

Oil shock of 1973-1974

OAPEC nations cease US oil imports and began production cars

What does oil shock of 1973-1974 lead to

world price of oil quadruples 2.9 - 11.65

Domestic effect of Oil embargo of 1973-1974

long lines of cars at gas stations

Carter’s restrictions and new implementations

Iran’s use of oil shock increasing prices

Shah uses increased oil revenue to buy Western arms and develops a secret police

Examples of Carter’s restrictions and implementations

Nixon’s project independence for domestic energy

CAFE standards

Strategic Petroleum Reserve

Nixon’s project independence for domestic energy

reduce dependence on foreign nations for energy with nuclear expansion and increased drilling and coal mining

CAFE standards

corporate avg fuel economy standards

Strategic Petroleum Reserve

Worlds largest emergency supply of crude oil created in response to vulnerability of having oil supply turned off

Cultural backlash to conservation

political and cultural backlash against “nanny state” energy conservation measures

Three Mile Island

Partial meltdown at Three Mile Island nuclear power plant

Three Mile Island importance

validated concerns over whether technology and institutions could be trusted

transforms nuclear optimism into nuclear fear

Nuclear optimism

50s and 60s saw nuclear as a symbol of the future, clean, cheap, seemingly limitless energy