Middle East Oil Crises and Western Europe's Energy Supplies

Research Summary

q       This memorandum is a part of RAND’s attempts to provide background information for the study of east-west economic struggle.

q       Oil being the principal source of wealth and international commerce, the study presented in the memorandum assumes a great significance in approaching the international political scene.

q       The study claims that struggle for oil is the key to many political and military developments in the Middle East and is fundamental in understanding the relations of western countries to Iran and the Arab world.

q       Showing that the oil consumption of the west is increasing in geometric proportions, the study identifies this as the vital reason why the United States is increasingly involving in the Middle East Political crisis, mobilizing oil supplies, and increasing oil production in the western hemisphere.

q       The study analyzes a range of possible oil crisis in the Middle East and relates its effects on the energy supplies of the Western European countries. By and large, it lists out several necessary measures to prevent a shut down of oil from the Middle East.

q       Since the Western Europe is dependent on Middle East for a substantial portion of its oil needs, it is vulnerable to hostile economic actions by the Middle East oil producing countries.

q       In a way of managing the possible oil shutdown from the Middle East countries, the Western Europe should make alternative arrangements like increasing the production by enlarging drilling in the United States and Venezuela.

q       The article also examines the viability of alternative measures like stockpiling of coal and oil and maintaining a marginal coal production in the Western Europe to meet the energy demands.

q       The most important part of the study is the linear programming computation of the economic cost to Western Europe due to possible restricted availability of oil imports.

q       With a comprehensive analytical approach to the issue carried out with elaborate facts, figures, and list of potential solutions, the study assumes a great significance in approaching the east-west economic struggle.

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