Oil sector reading "Lel Bruce Peto" hosts 70's chronology con't...

Oil sector reading "Lel Bruce Peto" hosts 70's chronology con't..
Oil & Gas Chronology :  The 1970’s

Jan 11 

U.S. Phase III price controls begin. Allows for voluntary instead of 
mandatory price control on all U.S. prices. This does not prevent a sharp 
rise in heating oil prices caused by a severe winter and shortage of 

Jan 17 

President Nixon suspends mandatory oil import quota on No. 2 heating oil 
through April 30.

Jan 23 

Shah of Iran announces that the 1954 operating agreement between a 
consortium of oil companies and Iran will not be renewed when it expires in 
1979. The consortium was formed in 1954 as a means to settle a dispute 
between a new ministry in Iran and the Anglo-Iranian Oil Company (AIOC). 
The consortium included Standard Oil of New Jersey, Standard Oil of 
California, SOCONY-Vacuum, the Texas Company, Gulf, Royal Dutch-Shell, the 
Compagnie Francaise de Petroles, and the AIOC.

Feb 28 

Iraq and IPC reach an agreement on compensation for nationalization. 


Special Rule No. 1 reimposes mandatory (Phase II) price controls on the 23 
largest oil companies. Smaller companies, representing 5 percent of the 
market, enjoy uncontrolled prices.

Mar 16 

Shah of Iran and Consortium members agree to nationalize all assets 
immediately in return for an assured 20-year supply of Iranian oil.

Mar 16-17 

OPEC discusses raising prices to offset decline of U.S. dollar value.

Apr 1 

OPEC increases posted prices by 5.7 percent.

Apr 18 

U.S. Government ends Mandatory Oil Import Program. Program, established in 
1959 by President Eisenhower, had limited imports of crude and product east 
of the Rocky Mountains to a percentage of domestic crude production.

Jun 1 

Eight OPEC countries raise posted prices by 11.9 percent. 

Jun 11 

Libya nationalizes Bunker Hunt concession; Nigeria acquires 35 percent 
participation in Shell-BP concession.

Jun 14 

Nixon administration imposes 60-day economy-wide price freeze, superseding 
Special Rule No. 1 for oil companies.


Libya nationalizes 51 percent of Occidental Petroleum concession and of the 
Oasis consortium.

Aug 17 

President Nixon's Cost of Living Council imposes two-tier price ceiling on 
crude petroleum sales: production of "old" oil (that produced at or below 
1972 levels from existing wells) to be sold at March 1973 prices plus 35 
cents; production of "new" oil (that produced above 1972 levels from 
existing wells and oil produced from new wells) to be sold at uncontrolled 

Sep 1 

Libya nationalizes 51 percent of nine other companies' concessions: Esso, 
Libya/Sirte, Mobil, Shell, Gelensberg, Texaco, SoCal, Libyan-American 
(ARCO), and Grace.

Sep 5-9 

Conference of less developed countries approves forming "producers' 
associations," calls for withdrawal of Israeli forces from occupied Arab 

Sep 15-16 

OPEC supports price hikes and designates six Gulf countries to negotiate 
collectively with companies over prices. Other members to negotiate 


Kuwait rejects gradual participation increase plan, insists on immediate 60 
percent participation.

Oct 6 

Beginning of fourth Arab-Israeli War.

Oct 7 

Iraq nationalizes Exxon and Mobil shares in Basrah Petroleum Company 
representing 23.75 percent equity in the company.

Oct 8-10 

OPEC meets with oil companies to discuss revision of 1971 Tehran agreement 
and oil prices. Negotiations fail.

Oct 16 

The Gulf Six (Iran, Iraq, Abu Dhabi, Kuwait, Saudi Arabia and Qatar) 
unilaterally raise the posted price of Saudi Light marker crude 17 percent 
from $3.12 to $3.65 per barrel and announce production cuts.

Oct 17 

OPEC oil ministers agree to use oil weapon in Arab-Israeli War, mandate cut 
in exports, and recommend embargo against unfriendly states.

Oct 19-20 

Saudi Arabia, Libya, and other Arab states proclaim an embargo on oil 
exports to the United States.

Oct 23-28 

Arab oil embargo extended to the Netherlands.

Nov 5 

Arab producers announce 25 percent cut in production below September 
levels. Further cuts of five percent are threatened. 

Nov 18 

Arab oil ministers cancel the scheduled 5 percent cut in production for EEC.

Nov 23 

Arab summit conference adopts open and secret resolutions on the use of the 
oil weapon. Embargo extended to Portugal, Rhodesia, and South Africa.

Nov 27 

President Nixon signs the Emergency Petroleum Allocation Act (EPAA). 
Authorizes petroleum price, production, allocation and marketing controls.

Dec 9 

Arab oil ministers announce a further production cut of 5 percent for 
January for non-friendly countries.

Dec 22-24 

OPEC Gulf Six decides to raise the posted price of marker crude from $5.12 
to $11.65 per barrel effective January 1, 1974. 

Dec 25 

Arab oil ministers cancel January 5 percent production cut. Saudi Arabian 
oil minister promises 10 percent OPEC production rise. 

Received on Friday, 14 February 2003 18:20:00 UTC