Term
| In establishing “BNOC”, the British Labor government |
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Definition
| made it the not only the repository of the government’s share of oil and gas reserves in the North Sea, but also gave it the specific trading function—it would buy up to 1.3 million barrels per day of output and then sell it to refiner. |
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Term
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Definition
Had 2 choices:
1. Cut prices, but it was unknown where low prices would stop
2. Or it could continue to prop up the price. However, if it did this it would be encouraging competing energy sources |
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Term
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Definition
| meant a huge drop in output and a vast loss of market shares & revenues. |
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Term
| Saudi output fell below British North Sea output |
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Definition
| Meant that they were propping up the price so that the British could produce more |
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Term
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Definition
| The Saudis chose an ingenious weapon with the Aramco partners and other oil companies strategically located in key markets. |
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Term
| OPEC was no longer protecting price |
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Definition
| now its objective was to secure and defend for OPEC a fair share in the World oil market consistent with the necessary income for member countries ‘development’ |
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Term
| the OIL COLLAPSE SCENARIO |
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Definition
• Shell in London adopted this policy
• Handed the shock well and were able to carry out operations as they had established in case of such an emergency |
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Term
| “Hara-Kiri” and $18 a barrel |
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Definition
| Remedy to all the oil issues was a reduction in production |
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Term
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Definition
| they had taken on the job of swing producer, varying its own output to support OPECs price |
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Term
| Some turned to barter and countertrade—exchanging oil directly for weapons, planes and Industrial goods |
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Definition
| Which had the effect of increasing the oversupply of petroleum on the world market |
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Term
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Definition
| “Today, the price of oil is the chief variable in our equation and the greatest single source of uncertainty about the future” |
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