How did the rise of OPEC rock Western hegemony in the Middle East? You should pr
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Question
How did the rise of OPEC rock Western hegemony in the Middle East? You should provide a historical background of European colonialism in the Middle East (at least two examples), and provide a clear description of the political change that OPEC brought about in the world.
How did the rise of OPEC rock Western hegemony in the Middle East? You should provide a historical background of European colonialism in the Middle East (at least two examples), and provide a clear description of the political change that OPEC brought about in the world.
Explanation / Answer
The organization of petroleum expoting countries (OPEC) was created at Baghdad, Iraq in 1960. It is a consortium of 15 petroleum exporting contries which dominate the production and export of petroleum in the world.
Colonial historical perspective-
During the world war II, the petroleun and oil was mainly under the control of western powers, mainly Britain and America. Most of the oil produce in the Arabian and Middle Eest countries was controlled by the cartel of companies from US and Britain. This cartel is infamously referred as "seven sister companies".
Examples of Colonialism in Middle East-
1. Iran-
In 1914, the British government purchased the 1908 Anglo-Persian Oil Company and directly started regulating tje oil production and exports in the form of Anglo Iranian Oil Company. It put an embargo over oil exports and thus controlled the oil market till 1973 oil crisis. This company is now referred as British Petroleum (BP)
2. Venezuela-
The Royal Dutch Shell of Holland started the oil production in Venezuela from 1914, making it the world's largest oil exporter in the year 1928. Just before the second world war, the US had taken control of oil production in Venezula and exploited the industry till 1973.
How western hegemony ended?
Against the control of western powers, in 1973, the Arabian and Middle East countries took a strong stand and imposed an oil embargo against the seven sister companies (of US and Britain) and this led to the scarcity of oil in the market. Due to this, the western world had to do many adjustments and cut short the production of the oil and had to consume less. This is how the hegemony ended.
Political changes brought up by OPEC-
Having a world dominating oil exporting cartel can significantly give the political power to the countries holding the cartel. This was the scene before the oil crisis of 1973 that each and every country of the world was dependant on the oil cartel which used to control the prices and production.
After 1973, the scene changed. The 1960 made organization of OPEC had begun to show its impact. The most important political change was the end of oil politics. This ended the western dominance and thus brought the prive stability. The 15 countries no doubt decide the oil prices but the developing world can now raise their voice. There is no more oligopoly or cartel system. The once a ruler in the oil market, the US, is now trying focusing all its attention to capture the oil markets of the middle east. Because, it is generally said that the one who controls the oil, controls the world. The OPEC situation has made the governments of the world to look for alternative sources of energy like wind, solar, hydroenergy etc. by necessarily mending the discourse towards emergy policies.
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