Question

Explain the oil crisis of 1973-74 and its role in restructuring and transformation of the oil sector worldwide. What did this crisis essentially accomplished? How does decartelization of oil stand out? Be methodical and systematic in your response.

Answer 1

ANS

In 1973 the oil crisis begin when in October when the members of the Organization of Arab Petroleum Exporting Countries declared the ban on Oil exports and trade this ban was targeted to the nations who percieved the support fro Israel in the Kippur war.By the mid of 1974 the price of oil rised by 400% . This ban caused a shock in entire global economy and mainly in US .It is also called first oil shock.The trasformation in worldwide which was seen that prices of oil touched to the roof ,and in this response technologically efficient countries like USA concentrated on being more energy efficient , it focused mainly on renewable energy so that it could be self sufficient and this accomplishment of USA was an example for many other nations and later other nations like Canada, Japan and UK also focused on getting self sufficient for the energy .The decartelization of oil still stands out as the oil producing nations are located in the middle east and they are placed within the neighbourhood of each other and due to this they regulate the whole oil industry of the entire globe .US has made every possible attempts to decartelize the oil producing nations but the problem still exists.