Dec 05, 2017 11:27 AM
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It is a book on the history of oil and its geopolitics. It describes the formation of OPEC. How it becomes a behemoth Cartel.
The book also talks about pre-OPEC era when the countries did not nationalize the oil resources and produce. And how the oil came into being and started affecting countries and their policies.
From the book, we come to know how middle east rose by the way of exporting oil. How the US was pitted against the likes of Saudi Arabia and Iran. How demand and supply eventually led to the price of oil. The production quotas are also discussed it detail.
The invasion of Kuwait by Iraq is also elucidated in the book. What factors led to it. How the airstrikes quelled the Iraqi forces out of Kuwait. How the rebels were instigated and how they supported the removal of Iraq from Kuwait.
How the Saudi Arabia and the middle east influenced the Israeli conflict. How embargo worked.
So many steps were taken to reduce the dependency on oil and its given in the book that this reduced the oil demand hence the prices.
One can also come to know how the policies of countries towards oil changed the governments when they dissented and how western powers created the Iran turmoil. Leaving Iran with a change of head.
How with prosperity because of the oil, middle east rose to becoming rich and could attract all necessities for living from being a desert state.
I read the book because I am working in oil and gas industry as an electrical engineer.
It was enriching to note from the book that oil till recently was not even 5dollars per barrel. And during the initial years the companies kept a lumpsum in the pockets of the Shah and took away all the oil. Slowly they reached terms with companies where a 50/50 set up was considered. Later the companies were paid and nationalized. Western powers have their companies running now as national companies after being nationalized.
How arms deals were signed when the countries prospered because of oil and kept the prices up. How Kuwait’s invasion would lead to the other neighboring countries to worry about they not being invaded and take recourse to taking help from the US.
All in all, a magnificent stuff if you are interested in Oil and its come about till the beginning of this century. But it’s not an easy read. Give it time and when you have plenty gorge into it.
