OPEC and the post-war evolution of the oil industry, part 2: The emergence of the IEA
We pick up the story of the history of oil with the response of consumer countries to the 1973 embargo, with the creation of the IEA proving the adage that every action has a reaction
OPEC’s revenues soared from $23b in 1972 to $140b by 1977, and this came at a big price for consumers. Taking a longer view, GDP growth in the OECD countries fell from an average of 5% in the decade to 1973 to 3% in the decade that followed. In the ten years before the Yom Kippur War, global inflation averaged 3.6% a year, while in the ten years afterwards, it averaged 11.6%. The impact on the global economy, including developed countries and developing countries less able to deal with the shock, was profound as huge wealth transfers flowed to the oil producers, forever changing their economies and long-term expectations about the ‘fair’ level of oil prices. The Seven Sisters, which

Also in this section
1 May 2025
The NOC’s dire financial situation and maturing fields has left the authorities with little choice but to reduce crude expectations
30 April 2025
With a new board appointed to lead NNPC and moves by President Tinubu to exert control in the Delta region, there is renewed hope the country will be able to turn the corner and rebuild production to former peaks
30 April 2025
While economic weakness and the electric vehicles trend have hit oil demand growth, petrochemicals and jet fuel show more nuanced changes across the barrel
30 April 2025
The company will use methane-rich gas produced from local coal to temporarily replace lost supplies from Mozambique