The Impact of the Arab Decision-Makers on the Oil Market
Abstract
This thesis examines the political arena of the oil industry, and the decision-makers of the Arab oil countries. The two primary areas of study are OPEC and the various political relationships, both inter-arab and Arab-Western. The oil weapon strategies are analyzed as a form of deterrence. The main hypothesis is that these countries have three options available in which to utilize their oil weapon: embargo; production slow down; and price fixing and raising. The potential of each option is analyzed in detail based on the attitudes, goals, reactions and various oil market roles of the countries involved. The conclusion reached is that, with only those three options available, the oil weapon is becoming less of a credible deterrent. Only total embargo currently remains as a plausible option. Both sides are beginning to realize that an equilibrium state of supply and demand is the only realistic alternative to ensure that all parties derive maximum benefit from an expendable resource.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1976
- Accession Number
- ADA026375
Entities
People
- Lee B. Hull
Organizations
- Naval Postgraduate School