...Daniel Sebagh Dr. Armiger Response paper #2 4/26/12 Oil Crisis in the 1970’s The Oil Crisis of the 1970’s was a major period in American history, when a number of political, global and social events came together to create a ‘perfect storm’. The Seventies was an era filled with people seeking self-fulfillment (The ‘Me’ Decade), where the nation was growing at a fast pace. People, during this time, concentrated on their own leisure and happiness. Behind the narcissism and selfishness of many people’s attitudes, an oil crisis struck America which largely impacted the automobile industry and led to a rise in gas prices. The combination of stagnant growth and price inflation during this era raises many issues, while many attempts to end the crisis, such as Jimmy Carter’s Energy plan, substantially made it worse. These problems caused Americans to focus more on economic issues versus social issues. The “Me Decade,” a term coined by novelist Tom Wolfe, was a concept of the Seventies- “an era of narcissism, selfishness, personal rather than political awareness… The ‘70’s was the decade in which people put emphasis on the skin, on the surface, rather than on the roof of things… It was the decade in which image became preeminent because nothing deeper was going on (Schulman, 145).” It described the new American self-awareness and the collective retreat from history, community and human reciprocity. Compared to the 1960’s, Americans in the 1970’s were self-absorbed and passive;...
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...Palm Oil Crisis in Thailand Palm oil has become the world’s leading vegetable oil in terms of consumption and production produced worldwide in 2009. The biggest producer, with a 47.6% share in production in 2009, was Indonesia, followed by Malaysia (38.8%) and Thailand (2.9%). Palm oil is versatile in its uses in the food and chemical industry and increasingly as a feedstock for biofuels. What is the Crisis? In 2011, Thailand was affected by the shortage of palm oil for cooking, despite being the world’s third-largest producer of the commodity. Thai people worried about not having oil to cook in their house. And the price of palm oil increased from 38 Baht to 47 Baht per bottle in the market. The palm oil product in that time decreased 14% while the demand for palm oil had increased 7%. What are the Causes of the Crisis? * The first cause of this crisis is estimating and stocking raw palm was wrong because of prolonged drought that affecting oil palm product. * The second cause of this crisis is increasing in demand for raw palm because of expanding Biodiesel product market. This affected year-end palm oil stocking was low until a crisis occurs. The year-end palm oil stocking had about 78,993 ton but it should be not lower than 120,000 ton. Therefore, Palm Oil Crisis in Thailand was happened throughout the industry and consumption. After the crisis had been solved found that the annual report of vegetable oil manufacturers had increased in net income more...
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...Business Ethics Risk The demand for oil depletes the world’s oil reserves at an alarming rate. Drilling operations are accused of contributing to water pollution and the release of air contaminants into the atmosphere. These greenhouse gases in return contribute to the warming of the earth’s atmosphere, leading to greater risk of polar ice cap melting, flooding and other environment damages. Situation An oil tanker from Exxon which named Exxon Valdez happened oil spill crisis on Friday, March 24, 1989. (Lilly, 2011) It was categorised into the top five largest companies in the US with the leading CEO Lawrence G. Rawl. One the day of the spill, the oil tanker hit a reef and it leaked massive crude oil in the Prince willam sound which was...
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...OIL COMPANY CRISIS Managing Structure, Profitability, and Growth Nick Antill and Robert Arnott Oil Company Crisis Managing structure, profitability and growth NICK ANTILL and ROBERT ARNOTT SP 15 Oxford Institute for Energy Studies 2002 The contents of this paper are the authors’ sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its Members. Copyright © 2003 Oxford Institute for Energy Studies (Registered Charity, No. 286084) All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior permission of the Oxford Institute for Energy Studies. This publication is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out, or otherwise circulated without the publisher’s consent in any form of binding or cover other than that in which it is published and without similar conditions including this condition being imposed on the subsequent purchaser. ISBN 1-901795-27-6 Cover designed by Clare Hofmann Typeset by Philip Armstrong, Sheffield Printed by Biddles, Guildford CONTENTS List of Figures Acknowledgements 1 2 INTRODUCTION INDUSTRY STRUCTURE 2.1 An Examination of Corporate Structure 2.2 The Urge to Integrate 2.3 A Question of Balance 2.4 Just how Operationally Integrated? 2.5 Are there...
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...significant events in particular were The Great Depression, The 1970’s Oil Crisis, and the 2008 Bank Crisis. Each had similarities and differences but all causes major economic chaos. The Great Depression was a worldwide despair that originated with the crash in the stock market in October 29, 1929. Throughout 1929 to 1933 the economic activity decreased in drastic measures. “Indrustial production declined by 37 percent, prices by 33 percent, and real GNP by 30 percent. Unemployment rose to a peak of 25 percent and stayed above 15 percent of the rest of the 1930’s” (Temin pg. 1). For nearly ten years there were few steady economic capitals in the United States. Only with the emercement of World War II, showed any improvements in the labor force during this time. Many scholars look at this crises as a world wide event which can be traced back to the first world war. “Even though the United States emerged from the war as the preeminent industrial ecomony, it was still part of the world economy” (Termin pg. 2). The ecomic changes the war caused had many affects on American ecomony. “ The primary factors were the changed pattern of international debts and lending, the expansion and collaspe of argiculture, and the end of mass imigration” (Termine pg. 2). “There were numerous events involving the demand in oil between 1967 and 1979 caused problems in the Untited States but the most vital started in 1973 when Arab oil producers imposed an embargo. “In October of 1973 Middles-eastern...
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...Being that the 1973 Oil Embargo was a major crisis that changed the way we consume energy today, it was surprisingly difficult to find a “lessons learned” report on the incident. I Google searched terms such as “1973 Oil Embargo lessons learned report”, “1973 Oil Crisis policy outcomes”, “1973 Oil Embargo aftermath”, and “1973 Oil Crisis synopsis”. I also searched the Department of Energy’s website for reports on the embargo and found relatively little information. It was not until I emailed you for help that I found documentation on the policy outcomes and reports on the 1973 Oil Embargo event (also known as the Arab Oil Embargo). The report I am using to analyze the crisis is from the Federal Energy Administration written in 1980 by Roger Anders. The report summarizes the outcomes resulting from the 1973 Oil Embargo—specifically, the establishment of the Federal Energy Administration, The Energy Policy and Conservation Act, The Energy Conservation and Production Act, and...
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...However by Tuesday the 29th the stocks had crashed again as over 16million shares were sold. This was the start of what would be known as the great depression. From 1929 until 1939 America suffered the greatest economic crisis the country had ever seen and is perhaps the worst even to this day. During that 10 years unemployment reached nearly 24 percent. Amazing and horrifying considering the average rate is about 4 or 5 percent. In the beginning there was no minimum wage, no unemployment benefits and no welfare. It is estimated that the average wage was around .05 to .20 cents an hour for those lucky enough to have steady work. With gas around .15c per gallon, eggs .18c a dozen, and bread .08c a loaf feeding your family was possible but was definitely not extravagant. The economy slowly saw improvement until 1937 when another recession hit. It wasn’t until the outbreak of World War II in 1939 that the government in support of England and France started defense manufacturing, creating jobs. But it was the attack on Pearl Harbor that lead the government to declare war and our factories went into full production. This lead to some of the lowest unemployment rates in history and out of the Great depression. War, what is it good for? The Economy. The 1970’s oil crisis After American...
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...Why did the U.S. enter an energy crisis in the 1970s? The United States entered an energy crisis in the 1970s for several reasons that were to some point self-inflicted. One of the contributing factors was the United States involvement in the development and arming of Israel. While the Soviet Union was sending arms to Syria and Egypt, the United States via President Richard Nixon was helping Israel defend their boarders and people by supplying them with arms. This in turn caused an outrage within the Organization of Arab Petroleum Exporting Countries (OAPEC) which in turn placed an embargo on oil exports upon the United States because of the aid and arms that the United States was supplying Israel. This embargo caused fuel shortages such as gasoline which in turn caused fuel prices to soar throughout much of the 1970s. This was further amplified due to the decline of domestic oil production and the reliance on imported oil from abroad. It only took three months for the embargo to cause massive change in the United States. Not only did the embargo hurt the automotive industry but also everyone who used highways as a speed limit of a mere fifty five miles a hour was imposed to help curtail the consumption of fuel. Other methods of fuel consumption management were used such as having fueling stations closed on certain days of the week as well as limiting what people could do to their homes. One interesting fact to note was that the price of crude oil quadrupled in less than six months...
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...gas supply. The unfortunate impression left by the shortages of gas in the 1970's caused the people to believe that there was a small amount of gas left. On the contrary, the gas resource base is vast, and probably even larger than currently estimated. People are often confused by the difference in "proved reserves", those that could be economically produced with the current technology, and the total natural gas resource base. Before the 70's, oil from the Middle East was very cheap, and in North America, it was about $4 a barrel. But then, the leaders of the Middle East discovered that everyone needed their oil, so they formed OPEC (Organization of Petroleum Exporting Countries). Practically overnight, they jacked up the prices of oil by limiting the supply. This was the first oil crisis. It lasted for a while, but then they got greedy, and started supplying more oil, in hopes to make more money. But then there was more supply than demand, so the price of oil started to fall. Just recently, they are getting back together, driving oil prices up again, and making these few countries rich. Inflation can be noticed when the prices of basic commodities increases such as milk, gas and bread. It is a rise in all prices simultaneously. Inflation is caused when the demand for something exceeds the supply. This causes the price of that particular item...
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...brief history of oil politics 3. Oil Politics and U.S. Militarism in the Middle East 4. Wars and disputes for oil 5. Oil and the Iraq War 6. Conclusion Introduction: The modern era of oil production began on August 27, 1859, when Edwin L. Drake drilled the first successful oil well 69 feet deep near Titusville in northwestern Pennsylvania. Just five years earlier, the invention of the kerosene lamp had ignited intense demand for oil. By drilling an oil well, Drake had hoped to meet the growing demand for oil for lighting and industrial lubrication. Drake's success inspired hundreds of small companies to explore for oil. In 1860, world oil production reached 500,000 barrels; by the 1870s production soared to 20 million barrels annually. In 1879, the first oil well was drilled in California; and in 1887, in Texas. But as production boomed, prices fell and oil industry profits declined. The energy source, which made the Industrial Revolution possible in England in the 18th century, was coal. Coal powered the steam engines which drove machinery in the factories, and the steamboats and railroads of the early industrial age. It has continued to power electric generation plants throughout the 19th and 20th centuries. Among the fossil fuels, coal is the most abundant in the earth, but it is also the most polluting. High sulphur and carbon content, and soot, cause coal to be the least desirable of the fossil fuels. A brief history of oil politics: Oil or petroleum...
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...1970s From Wikipedia, the free encyclopedia Jump to: navigation, search "Seventies" redirects here. For decades comprising years 70–79 of other centuries, see List of decades. From left, clockwise: U.S. President Richard Nixon doing the V for Victory sign after his resignation from office after the Watergate scandal in 1974; Refugees aboard a US naval boat after the Fall of Saigon, leading to the end of the Vietnam War in 1975; The 1973 oil crisis put the nation of America in gridlock and caused economic damage throughout the developed world; Both the leaders of Israel and Egypt shake hands after the signing of the Camp David Accords in 1978; The 1970 Bhola cyclone kills an estimated 500,000 people in the densely populated Ganges Delta region of East Pakistan (which would become independent as Bangladesh in 1971) in November 1970; The Iranian Revolution of 1979 ousted Mohammad Reza Shah Pahlavi who was later replaced by an Islamic theocracy led by Ayatollah Khomeini; The popularity of the disco music genre peaked during the middle to late 1970s. Millennium: | 2nd millennium | Centuries: | 19th century – 20th century – 21st century | Decades: | 1940s 1950s 1960s – 1970s – 1980s 1990s 2000s | Years: | 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 | Categories: | Births – Deaths – ArchitectureEstablishments – Disestablishments | The 1970s, pronounced "the Nineteen Seventies", refers to a decade within the Gregorian calendar that began on January 1, 1970, and...
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...Summary: On January, 1998, the Senior Executives of DuPont are considering possible divesture of Conoco. Based on financial analysis and economics data analysis, I propose that divest 40% shares and keep the mainly control of Conoco. We believe that divesting Conoco from DuPont will: - permit DuPont to expand its life sciences business, while at the same time allowing Conoco to pursue its investment program in new and capital-intensive oil and gas projects; - facilitate future partnerships, combinations and other arrangements between Conoco and other entities in the oil and gas business; - allow each company to offer incentives to its employees that are more closely linked to its performance; - permit each company to focus its managerial and financial resources on the growth of its business (2) And we also believe that by controlling Conoco, DuPont will: - benefit from the cost of control, promote competitive in other market which need to use crude oil as its raw material. - gain from the increasing price in crude oil in future cause the resources is nonrenewal. Thus, based on financial and economics perspectives, DuPont need to divest 40% of Conoco and keep control the rest of it. Analysis Ladies and gentlemen shareholders, Chairman, Director and Managers, It is a great pleasure to greet you all once again on behalf of the managers of DuPont, and welcome you to our shareholders’ meeting. Today, I have a big decision to announce about Conoco...
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...INTRODUCTION The recent moves of the government to gradually deregulate the Petroleum, Oil and Lubricants(POL) sector in India as part of the agenda of ‘neo-liberal reform’ has generated discontent among the people. In the run-up to complete deregulation, there are instances of increase in the domestic price of POL products that are proportionately more than the rise in their international prices. In the most recent instance (of 13th September, 2012), the diesel price was raised by Rs.5 per litre at one go, even without any rise in international prices. These steps are being taken to eliminate the government subsidy on these products in a step-by-step manner. Deregulation of the POL sector is bound to eliminate the direct or indirect subsidies completely. And reduction in subsidy, according to the government, is the need of the hour in order to reduce the fiscal deficit as proportion to GDP. Deregulation is also necessitated in the current neo-liberal environment because if the government keeps subsidizing the public sector owned oil marketing companies (OMCs) like Indian Oil, Hindustan Petroleum and Bharat Petroleum, then the private companies like Reliance and others would not get a ‘level playing field’ and they would not be able to compete in price. In this way, the present subsidy regime indirectly restricts the private players from entering the oil marketing sector. Hence, if the priorities of the government in power are the reduction of subsidies and ensuring...
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...an oil crisis. America was importing more than a third of its oil, therefore questioning how America would keep its economy running? There were two...
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...Oil Shock 관련 문제 The global economy is in shock so we can’t export ships. Most countries turned the original plan. Taiwan reduced investment plan but Korea kept on with it. After the oil shock, the import price of oil increased current account deficit increased as well OPEC reduced production of oil (OPEC 사우디아라비아, 쿠웨이트) as they have monopoly power in global market. These Middle East countries accumulated huge amount of dollars and used the money to build infrastructure. Great demand for infrastructure in Middle East and Korea seized this opportunity. Contract volume increased in the late 1970s. Using the money for construction sector in Middle East, we could import machines to keep on with heavy industry. Money earned from Middle East was almost same as the money we needed to import oil oil shock was sometimes an opportunity (Korean company was competitive compared to other countries as they had experience building infrastructure such as highway in the Vietnam War) However the foreign debt was building up, President Park was assassinated; there was a great chaos in 1980 Answer 제1차 석유파동은 1973년 10월 6일 발발한 제4차 중동전쟁이 10월 17일부터 석유전쟁으로 비화된 사건이다 중동전쟁에서 석유를 정치적인 무기로 사용할 것을 선언 제1차 석유파동은 석유가 싼값으로, 필요한 양이 공급된다고 안이하게 믿어 왔던 석유수입국들에게 석유공황이라고 할 만한 사태를 초래하였다. 각국 정부는 여러 업종에 대한 전력ㆍ석유의 공급 삭감, 민간인에 대한 에너지 절감요청 등의 조치를 취하였다. 세계경제 전체의 경제성장률이 크게 떨어져 1975년에는 서방 선진국은 마이너스 성장을 하게 되었고 인플레이션이 가속화되었으며 국제수지도 각국은 대폭적인 적자를 기록하였 1970년대 인플레이션은 두 번이 발생합니다. 하나는 1973년에 일어난 1차 오일쇼크로 인한 인플레이션이고...
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