ABSTRACT
Energy economics emerged in the 1970s as absolutely critical in determining developments in the international economy, and particularly in western Europe where more than 40 per cent of the energy consumed is imported. Europe’s own production of oil was growing with North Sea developments just at the start of the oil price rises, and much of the North Sea was commercialized by Organization of Petroleum Exporting Countries actions. The oil shocks also coincided with the huge expansion in the market share of natural gas in Europe, again as a result of rapid depletion of North Sea fields. The dominant fuel in trade is of course crude oil shipped to the European refineries of the international oil majors, the smaller international oil companies and those national European companies set up to retain control of refined products, such as Elf and Agip.
