Also - Chapter 7 is a good description of the beginning of oil in the ME (specifically Iran) I will post that below the required class reading notes
Chapter 21: The Oil Weapon – outline and brief notes
· Pg. 570: Start of Yom Kippur War/October War in 1973
o “new weapon” = oil embargo
o “the embargo, like the war…came as a surprise and a shock”
o “by 1973, oil had become the lifeblood of the world’s industrial economies, and it was being pumped and circulated with very little to spare”
· Pg. 571: Mandatory oil Import Program
o Increase demand for oil
o Suggested to get rid of quotas and impose tariff à negative response (in US)
o No removal of import restrictions even after Iran asked for it
o Increase demand for all forms of energy but decreasing availability of domestic oil
§ Quota system abolished (pg. 572)
· Pg 572: Qaddafi nationalizes oil: difference between him and Mossadagh was timing
· Pg. 573: Sadat – Egypt
o Wants stabilization of Egypt and Israeli relations à need to change Egyptian position/Israeli attitude
o Oil as a weapon now a viable option
· Pg. 579: Warnings about potential war are ignored by US – Euro countries
o Saudi warning, Soviet warning
· Pg 581: Recognition for a need of secure oil supply
o Negotiation in Vienna: west/OPEC on 2 different pages
· Pg. 584: War - Egypt catches Israel by surprise àwarnings shouldn’t have been disregarded
o US wants to focus on negotiations and not become overtly involved
o Israel in dire need of supplies: Soviet Union resupplies Egypt and Syria
· Pg. 587-88: US slow to resupply Israel because it didn’t want to appear outwardly supportive: soon become evident that they have to
o Plan to deliver supplies quietly and at night fails – airlift happens publically because of weather
· Pg. 590: Embargo agreed upon and implemented
o Embargo + domestic trouble in the US
· Pg. 594: Ceasefire put in place and direct talks between Israel and Egypt begin – oil embargo remains in place
Chapter 7: “Beer and Skittles” Outline and Brief Notes on discovery of oil in ME
· Pg. 120:
o Founder of ME oil = William Knox D’Arcy (in Iran)
o “oil seepage had been noted for centuries in Persia…”
o Prospects for oil and brief history of Iran (119-120)
o Rivalry between Brit and Russians
§ Russians seeking fresh water port
· Pg. 121:
o British Oil concession – May 28,1901
§ Shah Muzaffer al-Din signed the historic agreement
§ Concession is good for 60 years, covering ¾ of the country
· Pg. 122: Difficulty of the terrain and other early difficulties discussed
o 1903: 11 months after drilling had begun there were the first shows of oil (p. 123)
· Pg. 124:
o Financial difficulties and poor oil flow almost end work in Persia
o Role of Redwood
· Pg 125:
o Burmah oil – Scottish company with head quarters in Glasgow
§ Needed in order to continue to search for oil in Persia (D’Arcy low on funds)
· Pg. 126:
o 1905: “almost exactly four years …after the concession had been initiated by the Shah in Tehran the match was consummated between Darcy and Burmah oil in London” – called the Concession Syndicate
o Exploration begins in SW Iran
§ Traces of oil at ancient fire temple site
· Pg. 127:
o Description of G. Reynolds and his role
· Pg. 129:
o 1906: Political unrest in Tehran; results in the end of the Shah’s regime, a new constitution, and the establishment of a Majlis or Parliament
o Local/ tribal concerns as well as national concerns plague project
o Anglo-Russian Convention (1907) – “agreement to partition Persia into spheres of influence”
· Pg. 130:
o Strain between D’Arcy and Burmah oil- Burmah gives warning of last chance at site (running out of funds)
· Pg. 131:
o May 25, 1908: 7 years after the Shah signed the concession agreement oil was struck in Persia
o Reynolds is eventually fired a couple of years later
· Pg. 132-33:
o New company: Anglo-Persian Oil Co. formed
o Financial difficulties and Difficulties with refineries
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