The BAKKEN OIL BUSINESS JOURNAL is a high-gloss, full-color magazine with a targeted distribution that gets our Advertisers in front of the RIGHT EYES in this industry. Direct mailed to Companies in the Bakken with bonus distribution at Energy Shows.

Issue link:

Contents of this Issue


Page 12 of 59

Read online @ B A K K E N O I L B I Z . C O M / d i g i t a l - j o u r n a l 13 DISCOVER BIGHORN CANYON NATIONAL RECREATION AREA. TAKE HW Y 313 SOUTH A 70-MILE LAKE STRETCHED THROUGH CANYON WALLS 1,000 FEET HIGH MercuryCSC Southeast Consumer Bakken Size: Color: Program for Consumer Products, and to the establishment of the Corporate Average Fuel Economy regulations. The new law permitted the President to restrict exports of coal, natural gas and petrochemical feed-stocks. It also allowed for restrictions on equip- ment used for exploration, produc- tion, refining and transportation of energy supplies. However, the chief power of the bill was written into the following section of its text: "The President shall exercise the au- thority provided for in subsection (a) to promulgate a rule prohibiting the export of crude oil and natural gas produced in the United States…" An oil export ban. When President Ford signed the bill on December 22, 1975, he said, "The time has come to end the long debate over national energy policy in the United States and to put our- selves solidly on the road to energy independence. …This bill is only the beginning." The stunning OPEC price increases and supply cuts, otherwise known as the 1973 Arab Oil Embargo, con- vinced the US it was imperative to keep our domestic crude oil in the country. At that time US leaders fi- nally acknowledged the health of our economy was threatened by the people in control of the Middle East oil spigot – OPEC, under the guidance of Saudi Arabia. However, concerns had begun to arise a little earlier. In 1970, the Nixon administration was startled to dis- cover US oil production had not only peaked, but had begun to decline. To make matters worse, it was also clear the US had no spare production ca- pacity, and most likely, oil production would continue to decline. Everything came to a head on October 6, 1973 when Syria and Egypt launched a sur- prise attack on Israel, followed by our $2 billion aid for Israel. In response to our support of Israel, OPEC, under the direction of Saudi Arabia, retaliated by raising its price of oil by roughly seventy percent. The new price, a little more than five dollars a barrel, looks like an extraor- dinary bargain today, however, till that spike, oil had been trading for less than three dollars a barrel. Not long after the jump to five dollars a barrel, OPEC reasoned there was still more money to be extracted from its captive market, so the cartel lifted its price to $12 a barrel. Not only was the price increased, but in addition, oil production was cut by 25 percent, inflicting further pain on the western nations that were ac- customed to unlimited supplies of inexpensive OPEC oil. The embargo lasted until March 1974 and it was effective. The embargo's success revealed more than just Saudi Arabia's surge in economic power. Saudi Arabia, the world's largest oil exporter, was also a politically and religiously conserva- tive kingdom. The triumph of the em- ➤ continued, pg 14

Articles in this issue

Links on this page

Archives of this issue

view archives of BAKKEN OIL BUSINESS JOURNAL - BakkenJournal_Aug-Sept15