Innocence of oil companies. [Lack of power compared to governments]

Journal Article · · Foreign Policy; (United States)

OSTI ID:7100694

Chandler, G

''Innocence'' in the sense of powerlessness describes the oil companies' inability to control events when compared to the political power of governments. The oil-importing countries tended to give up their power during the 1950s and 1960s, but the balance of supply and demand, not oil companies, was the ultimate source of power. The current effort to harrass and discredit the industry should keep in mind the technological and economic success the oil companies enjoyed. Human and physical resources were developed to provide cheap assured energy until the early 1970s. The 1973 embargo removed the apparent power and shifted the power balance in favor of the producers. The inability of consumer nations to provide strong policies during the shortage left the oil companies to manage the embargo, which they did without taking advantages for themselves. Subsequent recession and general inactivity on the part of governments leaves oil at the focus of the energy supply scene. A variety of ownership arrangements is emerging in the international corporations to ensure a continuous flow of oil and to effect some control over prices while cooperating with the Organization of Petroleum Exporting Countries. Attacks on the oil companies for their actions is seen as unjustified since U.S. imports are central to maintaining the balance of supply and demand. The oil companies need to have their ownership position defined by a logical policy that will avoid disruptions in supply. (DCK)

• Research Organization: Shell International Petroleum Co., Ltd., London
• OSTI ID: 7100694
• Journal Information: Foreign Policy; (United States), Journal Name: Foreign Policy; (United States) Vol. 27; ISSN FRPLA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
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294002* -- Energy Planning & Policy-- Petroleum
CAPITAL
CHARGES
ECONOMIC IMPACT
ECONOMIC POLICY
ECONOMICS
ENERGY DEMAND
ENERGY DEPENDENCE
ENERGY SHORTAGES
ENERGY SUPPLIES
FOREIGN POLICY
GOVERNMENT POLICIES
INDUSTRY
INTERNATIONAL COOPERATION
INTERNATIONAL ORGANIZATIONS
INVESTMENT
MANAGEMENT
OIL-IMPORTING COUNTRIES
OPEC
PETROLEUM INDUSTRY
TRADE