The International Energy Agency Is A Paris Based Autonomous Intergovernmental Organization

Energy Crisis (1970’s) states that the crisis officially began when the “Organization of Arab Petroleum Exporting Countries (OAPEC) reduced their petroleum production and proclaimed an embargo on oil shipments to the United States and the Netherlands, the main supporters of Israel.” They did

is far from independent when it comes to energy, “about 40 percent of U.S. imported petroleum, a significant portion of all the petroleum that provides a third of national energy consumption flows from insecure, progressively more competitive foreign supplies, primarily in the Middle East, Asia, and Africa” (Rosenbaum, 2014 p. 279). This is inherently problematic as the nation relies on this imported oil to power everything from the electrical grid to the military. Sourcing this oil from unstable regions allows for these suppliers to have an unprecedented impact on the everyday operations of both the government and citizens. Furthermore the U.S. must keep good relations with the often-uncooperative nations that supply our foreign oil in order to maintain the supply flow, making this an issue of national security.

Since the oil embargo of 1977, there has been an increased awareness of our nation's energy security. As global population and energy consumption rise, the need for a stable energy supply has become a hot topic and a politically volatile issue. As our negative trade balance grows larger by the day, the United States finds itself in a rather precarious position. We are becoming more and more dependent on Middle East oil.

When trading oil it pays to keep an eye on the major consuming nations, as any increase or decrease in usage is sure to have an impact on the commodities performance. Something that is also worth monitoring – with this tying into the performance of major consuming nations – is OPEC, the Organisation of the Petroleum Exporting Countries. This international organisation works to ensure both the stablisaiton of the oil markets, along with coordinate and unify petroleum policies. Current members of OPEC include mass-producing oil nations (13 in total, including Saudi Arabia, UAE, Iran, Iraq, and Qatar). Considering that OPEC has the power to decide policies related to the production and sale of petroleum oil, it certainly has the power to impact the price, flow, and distribution of oil worldwide.

Being at the centre of global economic activities, the U.S. has had its own fair share of oil price shocks. However, it did not just accept or try to change or distort the market forces behind oil prices. Rather, it sought to influence them by making supreme the goal of energy independence. It also intensified diplomatic efforts and negotiations to this end.

Oil has been a coveted resource since the early twentieth century. Global oil powers are a major component of the world economy. For this reason predominant oil producers have experienced numerous power struggles and violent outbreaks over the years. Due to the newfound independence of many Middle Eastern countries in the 1960s, many rich oil fields were accessed for the first time, providing new competitors for the hegemonic American "Seven Sisters." Tensions rose between the United States and many Middle Eastern countries not only as a result of competition, but also due to several oil-related wars that broke out in the region. The years that encompassed the strained relationship between the U.S. and OPEC-involved countries proved to be a

The Unites States and The People’s Republic of China have been ever growing superpowers on the world scene since the last century. Their economies, military and social policies have been models and adapted by other nations on Earth and their present day influences in these same criteria seem to have no end. The driving force behind China’s industrialization and the United State’s global influence are one in the same; Energy. Both these nations have been fortunate enough through their geological locations to be able to find and harvest different sources of energy to propel their governments, economies, militaries, ect and with the help of harvesting the ingenuity of their respective populations to drive the discovery of more efficient and productive technologies in aspects of economics, home life and energy. This essay will go on to illustrate what energy sources either nations use and why they use them, what sources of energy they are trying to further develop and what sources of energy they import as well as export. Finally, We will touch upon the energy relationship between the US and China and compare this relationship through one or more international relations theories.

The Organization of the Petroleum Exporting Countries (OPEC) was formed in 1960 to unify the policies of oil exporting countries in the Middle East (About Us). During the 1973 Arab-Israeli War, the United States and Netherlands helped Israel in this war with supplies. This angered OPEC countries and acted as a catalyst for the 1973 oil embargo (Reid). Many countries in OPEC and most notably Saudi Arabia, wanted Israel to retreat from territories they gained during the war (Reid). The embargo that resulted caught many Western countries flat footed and sparked a global recession.

relations between Saudi Arabia and Iran has been considered the most significant, lasting effect of the Arab Oil Embargo. However, these changes were much less direct than those in the energy sector. Even though the embargo led to the United States allying with Saudi Arabia when they had previously been enemies, it can be argued that the embargo was not a direct cause of this shifting alliance (Myre). Furthermore, the fact that the United States is now rivals with Iran is more the result of the overthrow of the shah, who was effectively a puppet of the United States, than a consequence of the embargo itself (Myre). While, the effects of these changing dynamics are still seen today and are undoubtedly significant, the relationship between the embargo and the changing U.S. energy sector and policy is much more visible and direct. What’s more, the argument that the embargo most influenced U.S. energy is backed with an abundance of evidence, while the evidence suggesting the changing international relations resulted from the embargo is shaky and tentative at best. Due to this, it is apparent that the claim that the embargo affected U.S. energy policy most significantly is the correct

International Energy Agency & Organisation for Economic Co-operation and Development (2012). World energy outlook 2012. Paris: OECD/IEA.

The first section sets the foundation for Roberts’ discussion by discussing the current environment surrounding the oil business. According to Roberts, energy is related to flourishing and decline of the human race. Only when a community has the ability to provide enough energy to meet the demand of the population can that community thrive (Roberts 2004). Roberts argues this correlation explains how and why the international community has become dependent on oil. The second section discusses the present situation and introduces what Roberts calls the energy order, which is a term that describes a social hierarchical ranking of countries based off of their energy consumption, their ability to produce or access to oil. The third and final part combines the discussion of parts one and two in relation to the future. Roberts argues that the current model with currently have is not working and offers a discussion on transitioning to a new model with less demand for oil. In order for this to occur, the United States, which consumes the most energy annually and has enough political and economic influence, must lead the way (Roberts

To examine the role of the Middle East and Russia in the energy market and why in the last 5-10 years, the oil, coal and gas market has been deemed insecure.

Real and Nominal price of oil, 1968–2006. The 1970s energy crisis was a period when the major industrial countries of the world, particularly the United States, Canada, Western Europe, Japan, Australia, and New Zealand, faced substantial petroleum shortages, real and perceived, as well as elevated

“The United States, once the world’s largest producer and still its largest consumer, must import half of its oil supply, weakening its overall strategic position and adding greatly to an already burdensome trade deficit – a precarious position for a great power” (Yergin 14). So said Daniel Yergin in the prologue of his 1990 bestseller The Prize: The Epic Quest for Oil, Money, and Power. Today, oil retains its importance in the hydrocarbon societies of developed and developing countries as a major engine of economic growth, but the story is not so simple. When Yergin wrote The Prize, the United States seemed to be on an inevitable path toward instability and crisis as domestic reserves, long depleted, forced oil imports and exports around

In the “The Prize: The Epic Quest for Oil, Money, And Power,” Yergin undertakes the reader upon a thorough and enjoyable journey through oil history, from the first 1859 well drilling by Colonel Edwin in Pennsylvania during up to the invasion of Kuwait by Saddam Hussein in a wrathful grab for oil and wealth in 1990 August. Yergin explores the role of oil in warfare, depicts the ever-changing organization of the oil sector, and examines the prominent, as well as often flamboyant petroleum players. The book is a well-researched and well-written, and supplement to a history branch, which until very lately, had been regrettably neglected—history of business.