Synopses & Reviews
The politics of oil revolves around its price and the reliability of its suppliers. In turn, widespread international tensions and armed conflict are rooted in these politics. Not surprisingly: the price of oil is managed by a cartel -- OPEC -- some of whose member governments are deeply hostile to the United States and other major importers of oil. Ironically, the United States and many others, especially non-OPEC producers of energy, have come to rely on OPEC to set prices that encourage the development of high-cost oil elsewhere, and thus promote some diversity of supply. Understanding the politics and most recent history of world oil affords critical insights into the politics of the contemporary world generally. Francisco Parra, drawing on his long and varied experience in international oil, sets out the events that have shaped the industry over the past fifty years -- the displacement of coal as the worlds prime fuel; the tight control of international oil by the seven major oil companies (all US or British); and the political turbulence that has led to wars in the Middle East, to US sanctions on Iran, Iraq, and Libya, and, most recently, to the invasion of Iraq.
After a surge in non-OPEC oil production in the 1980s and 1990s, dependence on the Middle East has increased once again and OPECs control over price is volatile. Parra asks whether this enduring predicament -- that holds the threat of political conditions being attached to the supply of oil -- can be managed by the “West”, to avert successive and deepening crises in the pricing and supply of oil and in the world at large.
Review
"Francisco Parra's long service in the oil industry and his rare intellectual capabilities make him an authority on this subject. [His] book is a must." --F. J .Chalabi, Executive Director, Centre for Global Energy Studies.
"Few in the industry can match the variety of Parra's experience. This is a world-class book and a must for all those interested in international oil policies and politics, and a good read as well." --Nordine Ait-Laoussine, former Algerian Minister of Oil
"A unique and reliable reference for those interested in the history of the oil industry and OPEC." --Parviz Mina, International Petroleum Adviser
Synopsis
The environmental, the economic - and indeed the political - impact of the catastrophic 2010 blowout of BPs well in the Gulf of Mexico has highlighted the central part played by oil in the modern world. The fate of millions now depends on the ever-shifting value of petroleum and on the fortunes of the corporations that deliver it. The story of oil - how it came to play such a dominant role in the world economy, who controls its extraction, pricing and supply - is essential to an understanding of contemporary world politics. In this acclaimed book, Francisco Parra draws on his long experience in the oil world, including as the Secretary General of OPEC, to tell it. Oil Politics surveys the tumultuous history of the international petroleum industry, from its extraordinary growth between 1950 and 1979, presided over by the seven major oil companies, to the price revolution of the 1970s and 1980s, to the re-emergence of Russia as an important but uncertain supplier. Parra charts the changing power dynamics amongst the major oil suppliers and examines their relationships with the major oil importing countries, and how these concerns have impacted on foreign policy. Oil politics in the twenty-first century remain fraught with tensions, and this book offers a uniquely accessible guide to understanding this complex but vitally important subject.
About the Author
Francisco Parra is an ex-Secretary-General of OPEC and, as a petroleum economist, has spent a life-time in the oil business. He has published numerous papers and articles on the oil industry.
Table of Contents
Cornerstone Concessions * Big Bang and the growth of the Markets, 1950-1973 * Fixing the Crude Oil Price Structure * The Growth of Competition, 1950-1970 * Enter OPEC: The Early Years, 1960-1968 * The Tehran and Tripoli Agreements of 1971 and 1972 * The Struggle for Control, 1971-1973 * Importers Take Heed, 1971-1973 * The Crisis of '73 * The Aftermath of '73 * The Crisis of '79 and the Second Oil Price Shock * Backlash : Prices and Policies, 1980-1990 * The Development of Non-OPEC Oil Supplies to 1990 * OPEC at Bay * War in the Gulf, 1990/91 * Oil's New World * The Politics of Price and the Price of Diversity