Pollack, Gerald A.
April 1974
Foreign Affairs;Apr1974, Vol. 52 Issue 3, p452
This article examines the impact of the crisis in the petroleum export and import trade on world economics. The starting point for an analysis of the monetary impact of the energy crisis is the quantum jump in import bills implied by higher oil prices. For the United States, Europe and Japan, oil imports this year may be nearly $50 billion more than in 1973. If demand does not fall off appreciably when prices rise and if supplies remain tight, import bills will keep rising. By 1985 they might well approach$200 billion, some $150 billion more than in 1973. The Organization of Petroleum Exporting Countries (OPEC) investable surpluses may total nearly $100 billion by the end of 1974, and could cumulate to almost $500 billion by 1980 and more than $600 billion by 1985. In the long run, domestic investment by OPEC will feed back on the balance of payments, for example, by generating locally produced goods that can displace imports or gain a foothold in foreign markets. Indeed, given their small population base, industrialization of the Gulf states would necessarily make them dependent on the export markets of their oil customers for profitable operations.


Related Articles

  • OPEC-wise, Are We Helpless? Buckley Jr., William F. // National Review;1/28/2002, Vol. 54 Issue 1, p63 

    The article offers observations on U.S. foreign policy regarding Organization of Petroleum Exporting Countries (OPEC) nations. The only step the U.S. has taken to guard against the interruption of foreign oil imports is a national reserve, which would look after its needs, in normal consumption,...

  • OIL MARKET OUTLOOK.  // Africa Monitor: Southern Africa;Jan2006, Vol. 11 Issue 1, p1 

    The article reports on the developments in the oil markets in South Africa. Crude markets softened throughout November 2005, with the Organization of Petroleum Exporting Countries basket price slipping below US $50 per barrel on three separate occasions. The principal reason for the decline in...

  • 35 Years of Standard 90.1. Hunn, Bruce D. // ASHRAE Journal;Mar2010, Vol. 52 Issue 3, p36 

    The article presents the history of the Standard 90.1 of American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) in the U.S. It states that the standard was instituted in 1973, wherein there was an embargo on the production and distribution of oil, by the Organization...

  • On paying the price of oil. Neild, Paul // Accountancy;Nov74, Vol. 85 Issue 975, p96 

    The article examines the various proposals on the problem of recycling the oil funds, but finds that there is no easy solution with the cooperation of the OPEC states. All of the proposals suffer from certain disadvantages. Thus, the problem will apparently be with the world for a number of years.

  • Global Oil Market Overview.  // Turkey Oil & Gas Report;Q3 2008, p11 

    The article presents a global market performance of the world's oil market. It reveals that members of the Organisation of the Petroleum Exporting Countries (OPEC) experienced an unexpected windfall of the oil market wherein the basket price of their crudes tops US$100 billion barrels (bbl) as...

  • OPEC leader says production cut may be needed.  // National Petroleum News;Dec2006, Vol. 98 Issue 13, p9 

    The article reports on the decision of the Organization of Petroleum Exporting Countries to restrain oil production to deal with oversupply in the market. OPEC chief Edmund Daukoru states that the oversupply in the market means the current price is low and could not determine how much further...

  • The Energy Crisis Is Over...Again. Weyant, John P. // Challenge (05775132);Sep/Oct83, Vol. 26 Issue 4, p12 

    Even someone with an optimistic outlook on world oil prices recognizes that tariffs, stockpiling, and other defenses against supply disruption are still a good idea. Two years of oversupply on the world oil market and declining real oil prices have given many people the idea that the "energy...

  • Global Oil Market Overview.  // Mexico Oil & Gas Report;Q3 2008, p13 

    The article presents an overview for the development of oil demand, supply, and prices in the world market. It discusses the ministerial meeting of the Organization of Petroleum Exporting Countries (OPEC) in 2008 as well as the growth of oil supply during 2008 and 2009. In addition, it presents...

  • Fact and Fancy about the Oil Industry. Ellis, Howard S. // Columbia Journal of World Business;Summer77, Vol. 12 Issue 2, p53 

    In December 1973, the Gallup Poll asked a question as who and what people think to be responsible for the energy crisis. Some few respondents pointed an accusing finger at the Arab nations, others at big business and American leaders playing politics; important factions blamed the U.S. consumers...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics