ABSTRACT

This chapter presents the essence of the argument that rests on the observation that the international oil companies can no longer assure continuity of supply or price of oil in international trade. The security of international oil supply operations is further affected by regional conflicts in the producing areas of the Middle East—in particular the unresolved issues posed by the Israeli-Arab confrontation. The oil-producing affiliates of the international oil companies have become completely subservient to the directives issued by the oil-producing countries. However, the international oil companies are no longer able to assure the continuity or price of regular supplies to oil-importing countries. The oil-importing countries must also establish a concurrent and consistent program of energy conservation which would provide for far greater efficiency in the use of energy resources. Oil-producing countries are aware that high oil prices may harm the progress of other developing countries.