ABSTRACT
This chapter presents the study of the different rationalities. It also presents a picture, which is one of comparative optimism for the development of new rationalities, new risk-reduction programmes, both in the management of the offshore oil industry and in the engineering world. The chapter examines the construction of oil price events in the systems of engineering and industry management. While the potential of futures trading for hedging and risk-management had been a feature of the markets for other commodities for some time, a continuing reluctance in the industry meant that it had not been realised for oil. Like the 1973 oil shock, the price rise of 1979 had its source in the activities of Organisation of Petroleum Exporting Countries (OPEC). With the Iranian Revolution in 1979, OPEC saw the opportunity to raise prices as the world market immediately feared a shortage given the cutting off of the Iranian supply.
