Oil

• Why did Arab countries grant concessions to British and US companies and what was the economic impact of this?


  The Arab countries lacked the expertise and tech, so they granted concessions/licenses to Britain and US companies to do so in return for a fee. Once they paid their fees, they took the rest of all profits.
• Why did dissatisfaction with the oil concessions grow in the 1950s

  and what action did some Arab states take? Give examples.

  Demand for oil from the rich, industrialised nations was growing quickly- as were the profits. The host nations felt that they weren't benefitting.
• Describe the action of the ‘Seven Sisters’ and the impact of this –including OPEC?

  Reduced the price of oil in 1959, as there was glut on the world market. This knocked $132 mil off the income of the 4 major Arab oil countries (who weren't told before hand). The Arabs retaliated a year later. 1960-OPEC formed and was designed to force the oil companies to consult OPEC members before changes.
• How did oil increasingly become a factor in the Arab-Israeli conflict?

  Suez Canal closed (till 75) due to 6 Day War, so oil tanker had to take longer route and Europe experienced oil shortages. Saudi became main financier and champion of the PLO.
• How did oil increasingly become a factor in the arab-Israeli conflict? (point 2)

  Saudi became one of the most outspoken critics of Israel. April 1973, Saudi Oil Minister warned the US government that if they don't do more to help the Palestinians- they'll refuse to increase oil production and keep prices high.
• what caused the embargo of 1973?

  in the yom kippur war, the syrians and egyptians were overwhelmed by the israelis on the west bank. Arab oil ministers imposed 17% price rise on oil sale. US President Nixon approved $2.2 billion arms deal for Israel-outraged oil ministers.
• what was the embargo of 1973?

  a complete embargo on the sale of oil to the USA and to the Netherlands, which supplied much of western Europe through the port of Rotterdam.
• what did the Arabs call for?

  end to Israeli occupation of Arab lands and full restoration of the legitimate rights of the Palestinian people.
• What did the Arab oil countries reduce their oil output by and impact?

  25% and hit oil dependent countries (Europe and Japan). petrol prices rocketed and sales in Britain rationed.
• when did USA persuade Israel military to withdraw from Suez Canal and was the oil embargo lifted?

  March 1974 and yes.
• what did US supply Saudi with Feb 1974?

  advanced, sophisticated military equipment.
• what did the oil states achieve at the end of 74?

  complete independence from the western oil companies and now wealthier.