File Name: petroleum economics and global marketing .zip
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The United States' dependence on oil has long influenced its foreign policy. This timeline traces the story of U. The three major periods include the rise of oil as a commodity, beginning in ; the post-WWII age of geopolitical competition; and the current era of deregulation and diversification. The development of the Watt steam engine in the late eighteenth century spurs a wave of mechanization in Europe and the United States known as the Industrial Revolution.
Coal is the main energy source driving the revolution in its beginning years. In the mids, kerosene produced from refined crude oil begins to make its way onto the market in the United States as a lighting fuel, an alternative to the dwindling supply of whale oil.
Crude oil is successfully extracted using a new drilling method in Pennsylvania, which sparks a regional influx of speculative oil drilling. The first U. Over the next century and a half, oil supplants coal as the country's preeminent fuel source and contributes to its emergence as a major economic power. In , the United States is responsible for 85 percent of the world's crude oil production and refining, and kerosene is the fourth largest U.
However, U. Still, over the next two decades, major oil finds in states such as Texas, California, and Oklahoma help increase U. By , more than oil byproducts—including fuel for stoves and internal combustion engines, as well as lubricants for industrial machinery—begin to enter daily life. The Spindletop gusher—the largest to date—fuels a major oil rush in Texas, and U. Henry Ford's invention of the Model T in —the world's first inexpensive, mass-produced car—helps pave the way for a significant increase in auto ownership.
By , U. By , the United States is the most motorized country in the world, with one motor vehicle for roughly every five people. Comparatively, other major industrial countries like Britain, France, and Germany have about one motor vehicle for every forty-four people. The United States continues to lead auto ownership per capita for the next century, and refined-motor fuel becomes the country's predominant use of oil.
By the s, John D. Rockefeller's Standard Oil owns 90 percent of the U. In , the U. The U. Supreme Court rules in favor of the government in May These companies come to dominate much of the international oil market for the next six decades.
With the onset of World War I, oil becomes vital for modern warfare, fueling ships, land vehicles, and planes. German attacks disrupt U. When the United States enters the war allied against Germany in , the Wilson administration steps up efforts to supply oil to Britain and France. During the U. Geological Survey estimates U. Though the United States produces roughly one million barrels of oil per day, or 65 percent of global oil supplies, more than 90 percent is consumed domestically.
Congress passes the Mineral Leasing Act of , which requires leasing of federal lands for energy prospecting for the first time. In response to British and French attempts to shut U. Following British and French attempts to shut U.
But the doctrine fails to take hold. Instead, a consortium of seven oil companies is given financial interest in the Iraq Petroleum Company, and the companies agree to not independently develop oil in an area that spans from Turkey to Iraq and Saudi Arabia, but excludes Kuwait, Iran, and Egypt. This Red Line Agreement with its "self-denial clause" allows seven companies, five of which are American, to control the bulk of Mideast oil production by the early s. Technological breakthroughs and increasing oil production in Latin America, the United States, and the Middle East lead to overproduction.
Disproving shortage projections by the U. Geological Survey, in less than a decade U. Britain's attempt to stabilize European oil prices through the Achnacarry Agreement , which limits sales by oil producers, is met with mixed success.
In , oil prices plummet to just a few cents a barrel. Though the Supreme Court overturns the federal quota system in , U. Governments begin to take a more active role in the oil industry. Iranian leader Reza Shah Pahlavi in cancels the concession of the British oil company Anglo-Persia but then later retreats after striking a deal for a fixed royalty and an increase in Persian laborers employed by the company.
Meanwhile, European governments impose import quotas, set prices, and require fuel blending with ethanol made from excess crops, as well as requiring investment in domestic oil infrastructure.
In , the Mexican government nationalizes the oil industry and revokes U. Mexico's actions foreshadow a wave of oil nationalizations that will follow in the decades after the war. Japan, heavily reliant on U. In response, the U. On December 7, Japan attacks Pearl Harbor but fails to target the Navy's on-island oil storage—about 4 million barrels—leaving it to fuel the surviving Pacific fleet.
By , oil shipments from the United States to allies in Europe are impeded by German U-boat attacks. When the United States enters the war, it embarks on a nationwide rationing plan that includes gas coupons and limiting driving speed to 35 miles an hour.
Efforts also are made to bolster U. Meanwhile, Venezuela enacts a new "fifty-fifty" oil law, which gives the country half of all oil profits but leaves U.
In , Saudi Arabia is found to have vast quantities of oil. In , with concerns growing about the diminishing U. A few years later, the world's biggest oil field is found in Saudi Arabia, and the country quickly becomes the world's largest exporter of oil—though it does not become a significant U.
The country plays a central role in the global recovery, including providing energy aid to a devastated Europe. The war's end also brings about the end of U. In the decades that follow, the transportation sector's mainly automobiles share of oil consumption rises from about 50 percent to more than 70 percent. The European Recovery Program, also known as the Marshall Plan, helps war-torn Europe get access to petroleum imports.
The continent begins to become more dependent on oil for its energy needs as Europeans turn away from coal. In August , the Iranian military, with the help of British and U. Iran's oil remains nationalized, but in October the government agrees to a consortium of mainly U.
To prevent running afoul of U. The two countries, in a coordinated attack with Israel , temporarily seize the canal in October. Half the canal's traffic is petroleum, and the ensuing crisis from its closure threatens Middle East oil shipments, which supply about , barrels a day to Europe. The intervention stokes Cold War tensions, and U. President Dwight D. Eisenhower compels a withdrawal to avoid a showdown with the Soviet Union.
In a speech to Congress , Eisenhower says the Middle East would be a prize for international communism and asks Congress to provide economic and military support for any nation or groups of nations in the region with "governments manifestly dedicated to the preservation of independence and resistance to subversion. In , the world once again faces an oversupply of oil and prices are slashed. The program also gives preferential treatment to Canada and Mexico. The quota lasts for fourteen years.
Arab nations, relying heavily on oil revenue, are increasingly frustrated by oil price cuts by largely Western oil companies—and by U. In August , Western oil majors once again slash prices without consulting exporting countries. In September, representatives from Saudi Arabia, Venezuela, Kuwait, Qatar, and Iran meet in Baghdad with Iraqi officials—together they represent 80 percent of the world's crude exports.
The next day, Arab oil ministers call for an embargo on countries friendly to Israel. Oil shipments halt to the United States and Britain. By September, the embargo is lifted, and, for a short time, the world experiences another oil glut.
In April , OPEC moves to rebalance profit sharing and oil prices and refuses to allow foreign oil companies to deal with the organization as a whole. The bloc instead forces them into separate negotiations, one for Persian Gulf producers Tehran Agreement and one for producers on the Mediterranean Tripoli Agreement , resulting in higher prices.
The incident marks a turning point for OPEC's clout. Within a decade, many of OPEC's members begin to partially or fully nationalize their oil resources and have greater influence in setting oil prices.
By the end of the s, international oil companies have unfettered access to just 7 percent of the world's oil reserves, down from 85 percent in the s. Faced with a looming gasoline shortage, in April President Richard Nixon announces he is ending the Mandatory Import Program—which sets limits on oil imports—but rejects recommendations to implement conservation efforts and develop fuel alternatives.
The import mandate comes two years after Nixon imposes oil price controls as part of his anti-inflation strategy. Oil imports, representing about 30 percent of U. Arab states respond by suspending oil shipments to nations supportive of Israel.
The embargo reduces traded oil supplies by 14 percent internationally. Gasoline prices in the United States increase as much as 40 percent within a few months. Consumers in Europe, Japan, and the United States begin to panic over oil shortages. Hours-long lines at gas stations form across America as people start to hoard gas supplies following gas rationing and price controls.
President Nixon on November 7 announces a swath of new energy policies and "Project Independence," a goal of U. With the oil embargo after the Yom Kippur War wreaking economic havoc, U. Secretary of State Henry Kissinger starts "shuttle diplomacy," helping attain disengagement between Israel and Egypt in January Arab oil ministers agree to end the embargo on March 18, , on the condition that the United States also promotes Israeli-Syrian disengagement.
Kissinger helps achieve an agreement between the two states in May, which includes a cease-fire and withdrawal of Israeli forces from some captured territories.
Top Factors That Affect the Price of Oil
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Oil Dependence and U.S. Foreign Policy
The global economy has changed significantly over the past few decades, in the way that it is organised and governed by collaborating nations. These changes have repercussions that not only affect the flow of goods and services between countries, but also the movement of people. So what exactly is the global economy, how does it function, and how does it affect our lives?
The petroleum industry , also known as the oil industry or the oil patch , includes the global processes of exploration , extraction , refining , transporting often by oil tankers and pipelines , and marketing of petroleum products. The largest volume products of the industry are fuel oil and gasoline petrol. Petroleum is also the raw material for many chemical products , including pharmaceuticals , solvents , fertilizers , pesticides , synthetic fragrances, and plastics. The extreme monetary value of oil and its products has led to it being known as "black gold". The industry is usually divided into three major components: upstream , midstream , and downstream.
Oil examines the key issues in demand, supply, refining and trade to Oil looks at the interplay between the expanding US influence in global oil supply and the demand from Asia for exports from the Middle East.
Этот враждебный мир заполняли рабочие мостки, фреоновые трубки и пропасть глубиной 136 футов, на дне которой располагались генераторы питания ТРАНСТЕКСТА… Чатрукьяну страшно не хотелось погружаться в этот мир, да и вставать на пути Стратмора было далеко не безопасно, но долг есть долг. Завтра они скажут мне спасибо, - подумал он, так и не решив, правильно ли поступает. Набрав полные легкие воздуха, Чатрукьян открыл металлический шкафчик старшего сотрудника лаборатории систем безопасности. На полке с компьютерными деталями, спрятанными за накопителем носителей информации, лежала кружка выпускника Стэнфордского университета и тестер. Не коснувшись краев, он вытащил из нее ключ Медеко.
Что он делает здесь, в Испании, зачем спорит с этим психованным подростком. Беккер резким движением взял парня под мышки, приподнял и с силой посадил на столик. - Слушай, сопливый мозгляк. Убирайся отсюда немедленно, или я вырву эту булавку из твоих ноздрей и застегну ею твой поганый рот.
Все повернулись к экрану. Это был агент Колиандер из Севильи.