Access to Energy. 2000 and After by Melvin A. Conant

By Melvin A. Conant

Conant explores how the transformation of oil from a advertisement commodity to a strategic uncooked fabric have replaced the face of global power politics. In an more and more interdependent global, Conant questions the ideal of any state to withold very important offers from different international locations.

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Sample text

8 Although the political circumstances behind the final overthrow of the Mossadeq government remain subject to debate, a slightly more amenable government, headed by the shah and installed with United States support, eased the crisis in 1954. In its aftermath, the role of BP was changed, and a leading Middle East producer survived the experience. Iran went on to become a key leader in the changing world of international economics and the geopolitics of oil. One result of the crisis was the replacement of the preeminent role of BP by an international oil consortium, of which BP was the most important member.

The com- Concession System / 35 mon denominator of these was ownership of the oil by Indonesia, with the contracts between oil companies and PERTAMINA, the Indonesian government oil monopoly—a far different relationship from the one embedded in the concession system. " That they were not—although the Iranian situation may have come close to it—was due to the postwar decline of European power, combined with European and American reluctance to consider such measures in that political environment (including some concern about a Soviet response) and the basic common sense of the companies.

While the companies were far from being ready to accommodate to change, their attitude was stiffened to a rigid position by the government support. 4 The volatile Mexican political situation, combined with the discovery of sizable new oil fields in the United States, Venezuela, and Colombia, led by the late 1930s to a further deterioration in Mexico's oil prospects. Matters finally reached a boiling point when the Mexican government supported the petroleum workers in a labor dispute with the foreign oil companies.

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