14 Arab Oil Embargo Flashcards
(36 cards)
Why was right-turn-on-red introduced in the US?
in 1973 to save gas.
How much did the price of gasoline increase in the US in less than a year?
Quadrupled
In 1955, what was the estimate of how much of the global oil was in the Mideast?
75%
When was OPEC founded?
1960
What was OAPEC?
Org of Arab Petroleum Exporting Countries founded in 1960
Arabs - 11 members, 6 of whom belong to OPEC
What happened in 1973?
Sadat and Faisal met in secret.
What did they agree on?
If the west supported Israel in the A-I war, they would use oil as a weapon.
How long did the embargo last?
243 days
Where did the world stand with oil then?
Supply just equaled demand.
Purchasers dictated the price.
What was unique about the 1973 embargo?
Saudi Arabia joined in.
What had changed?
The US needed Mideast oil more than ever.
How did Saudi Arabia fit in?
21% of world exports of oil
What did Roosevelt and ibn Saud agree to in 1945?
THe Quincy agreement
Saudi would provide the US an air base and access to oil.
US would train Saudi military.
What other control did MidEastern countries have?
3 choke points in shipping.
There are only 7 in the whole world
What are the 4 choke points not in the MidEast?
What are the 3 in the MidEast?
- Gulf of Hormuz
- Bab-el-Mandeb (Aiden)
- Suez Canal
When was the second oil shock?
The 1979 revolution in Iran.
Who ruled Iran after the revolution?
What did he declare?
Ayatollah Khomeini
That Iran was a Islamic state
What happened to oil?
Production dropped only 4% but prices doubled.
What happened between 1980 and 1989?
The Iran-Iraq War
What were they fighting over?
Oil-producing lands
What did this trigger globally?
A global recession.
What happened between 1984-1988 that affected the shipping lanes?
The Tanker War
Iran and Iraq attacked each others tankers
Why did the Tanker War happen?
Saddam Hussein had not done well in land war so attacked Iraq’s ships.
