INTB 3351 Final Exam ReviewWeek 8 Study Guide Monday, 10/10On-Line Video: The Prize: Crude Diplomacy (links to streamed clips in Week 8 folder)

1. How did the United States beat out Great Britain in establishing and solidifying the “special relationship” with Saudi Arabia? What were the key events?Please answer in red font color

2. Describe the relationship formed between U.S. major oil firms and American government in the Middle East after World War II.Please answer in red font color

3. How was the Iranian Consortium a “culmination of thirty years of effort to control world supply” by the major oil companies? What were the obstacles to this effort? Please answer in red font color

4. What was the effect of the “oil system” established in the 1950s? Who did it work for, and against?Please answer in red font color

TermsIbn Saud - Please answer in red font color50-50 split - Please answer in red font colorAnglo-Iranian Oil Company - Please answer in red font colorMohammad Mossadegh - Please answer in red font color

Wednesday, 10/12Reading: Anthony Sampson, The Seven Sisters, pp. 104-166 (PDF file in Week 8 folder)

1. How and why did the American oil companies, Socal (Chevron) and Texaco, gain the oil concession in Saudi Arabia, as opposed to the other major oil companies? Why was the ruler of Saudi Arabia eager to do business with the Americans? (pp. 104-109)Please answer in red font color

2. What were the “two opposite foreign policies” of the United States in the Middle East? What was the U.S. State Department’s solution? (pp. 119-125)Please answer in red font color

3. How and why were the major U.S. oil companies able to avoid criminal anti-trust convictions for their join agreements in the Middle East? (pp. 144-150; 158-159)Please answer in red font color

4. How did the major oil companies use their control over the Iranian concession to control the global supply of oil? (pp. 155-159)Please answer in red font color

Terms (Identify by historical significance, time, and place)Harold Ickes (P 113-119) - Please answer in red font color

Fifty-Fifty Deal (P 129-131) - Please answer in red font colorGolden Gimmick (P 132) - Please answer in red font colorPosted Price (P 133) - Please answer in red font colorSuez Crisis (P 164-166) - Please answer in red font color

Lecture OutlineThe Globalization of Oil, 1945-1986

1. Post-WWII Supply System Saudi Arabia Aramco (Arab American Oil Company) Tapline and Truman Doctrine “50-50 Split” Iran Anglo-Persian Oil Company (BP) Overthrow of Mossadegh Suez Crisis (1956) Challenge from Mattei and ENI

2. Rise of OPEC Changes in world oil economy in the 1950s Founding and strengthening of OPEC in 1960s OPEC Embargo (1973) – “First Oil Shock” Rising prices, renegotiations of oil concessions in the 1970s, NOCs

Iranian Revolution (1979) – “Second Oil Shock”3. OPEC Undermined

Growth in non-OPEC production: Alaska, North Sea, Mexico OPEC failed to enforce production quotas Oil price collapse, 1985-1986

TermsConcession - Please answer in red font colorAramco - Please answer in red font colorOPEC - Please answer in red font colorGhawar - Please answer in red font colorEnrico Mattei - Please answer in red font colorMuammar al-Qaddafi - Please answer in red font color

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