From the Archives: October revolution

The Arab oil embargo of 1973 was a turning point for the global oil and gas industry. As part of our 90th anniversary series, we republish how Petroleum Economist covered this critical story

The tragic renewal of hostilities in the Middle East has brought extremely serious consequences for oil consumers the world over. The Arab governments implemented their threat to use oil as a political weapon and have started cutting production. Abandoning all pretence at negotiation with oil companies, they have torn up the five-year Teheran and Tripoli agreements and have imposed unprecedented increases in oil prices and taxes. They thus ensure that lower exports will bring greater revenues than ever before. The importing countries now know that they effectively face a cartel of exporters which has the power to restrict supplies of the world’s most important source of energy and to hold t