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What I learned about the topic that surprised me the most was that it was possible for another oil crisis to occur, because I thought it was something that occurred due to a lack in technology back in the day. I consider this interesting because back in high-school I learned a lot about oil as I ended up taking a lot of classes that included projects about it, and I always found them easy to work on. The most important thing that I would pass on would be that another crisis is inevitable, and could be coming soon. It is easy to convey, and is definitely meaningful, and can impact everyone in the blink of an eye.

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This image is a chart showing the efficiency of the most productive countries of oil over the years, over the span of 1975 to 2015. China is predicted to be the biggest producer in the coming years.

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This image depicts a man with 2 signs. He is most likely a gas station owner that has been ran out of business (or near it) due to the oil crisis.

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A Short Introduction, By Michael Mintsinikas

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A Short Introduction, By Michael Mintsinikas

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Oil Crisis, is something that is caused when oil is extremely raised in price, while at the same time, the demand for it is going up, which causes it supply to go down. This results in people not being to get proper amounts of oil for whatever they need to do, and costs them more. In this Padlet, you will learn about some of the history of Oil Crisis, and how it has been caused over the years on top of other things.

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A Video Showcasing the Time When Arabic Countries Stopped Supplying Oil to Other Countries

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A Video Showcasing the Time When Arabic Countries Stopped Supplying Oil to Other Countries

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In this video, we see a lot of old footage from past news reports and gatherings to discuss the crisis caused by the Arabic countries choices to not supply their oil to any other countries. This obviously had caused a massive panic among people and oil instantly became an even more scarce material than it already was. Most people consider the Oil Crisis of 1973 to be the worst oil crisis of all time due to how impactful it was to everyone. It all gives statistics on how it impacted companies, like GM, and how they had to cut down production entirely by 79,000 automobiles, for example.

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Statistics on Oil Production and Distribution

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Statistics on Oil Production and Distribution

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This video covers who produces the most oil, who distributes it the most and the many conflicts involved with oil. It brings up how OPEC had to fight the USA for its oil, in which OPEC ended up winning and is now the largest controller of oil in the world, while also dethroning USA as the largest producer of oil on earth, which now goes to middle eastern countries. It talks about oils importance, as it is compared to being as important as military strength within a country, and a good country oil wise can easily become a strong one, even with a weak military strength. Oil is known to be used as a weapon due to how menacingly important its presence is within the world.

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Things That Could Contribute Towards Another Oil Crisis

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Things That Could Contribute Towards Another Oil Crisis

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In this short article, we learn about how close we are to another oil crisis, and behind the scenes things about countries that could also end up contributing towards another oil crisis. Ranging from people being bullied into buying into a certain oil company, to Saudi Arabia about to reveal the extent of the damage that has been caused by the middle east's actions, and the ability of theirs to reverse the damage will be revealed soon. Supply and demand and is also being shortened as the years go on, with demand slowly getting bigger and bigger than supply can give in for.

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The supply disruptions in the oil market may not be over, despite volatility and prices easing in the days after the Abqaiq attack.

The repairs at the Abqaiq processing facility are on an extremely tight timetable. According to Bloomberg, Saudi Aramco had about 50 million barrels in storage within the country prior to the attack, plus around 80 million barrels at ports around the world (although not all of that is usable).

Aramco is determined to keep export levels from falling, choosing to draw down inventories to keep shipments unaffected. It is also opting to slash refining throughput by about 1 million barrels per day (mb/d), which will cut into product exports but will free up crude. One other strategy is to start up production at some offshore fields.

But Aramco vowed to make repairs and bring Abqaiq processing back to pre-attack levels by the end of September, which, at this point, is less than two weeks away. If repairs take longer, then there will be increased scrutiny on Saudi inventories, and any interruptions to buyers would have global impacts. "They probably have about one month of inventories," Amrita Sen of Energy Aspects told Bloomberg.

It may take a few weeks before more is known. "A lot of October arrival barrels were already on the water so the hole is going to show up toward late October," a European oil trader told Reuters. "There has been a mad scramble on the paper markets but the physical scramble will come later."

There is also a growing skepticism that Saudi Arabia will be forthcoming about the true extent of the damage and its ability to turn things around. The "actual longer-term impact of the attacks on the Saudi oil infrastructure is still difficult to judge because the country is likely to play down any potential problems given the importance of its customer relations and the upcoming IPO of Saudi Aramco," Commerzbank wrote in a note on Friday. Related: Wealthy Saudis Are Being Bullied Into Buying Aramco

If Aramco loses its perception as a reliable supplier it would have severe implications for its valuation when the company goes public. Meanwhile, the FT reports that the Saudi government is bullying wealthy facilities into buying into the IPO to ensure its success. Riyadh is clearly concerned about the perception of Aramco in the wake of the Abqaiq attack.

Also, news surfaced that Saudi Arabia might need to import oil to cover its obligations for customers, which raised questions about Aramco's ability to keep exports level. Of course, there are going to be some quality issues with the type of oil sitting in storage and what was lost due to the Abqaiq outage, and it's not uncommon for exporters to also import. But if one of the world's largest oil producers and exporters is suddenly scrambling to import oil, that raises some red flags.

If they are indeed asking Iraq for oil, that "would suggest that the damage to the Saudi infrastructure is in fact greater and more lasting than the country is willing to admit," Commerzbank said. For its part, Aramco denied having asked Iraq's state-owned oil marketing company for oil.

Meanwhile, a raft of other supply outages could also disrupt the oil market, compounding the outage at Abqaiq. A little more than a week ago, Nigeria's Bonny Light suffered yet another force majeure after disruptions at the Nembe Creek Trunk Line, which has been repeatedly targeted in the past few years. Related: Is Libya Facing A New Oil Crisis?

Also, Reuters reports that Venezuela might see more supply disruptions as buyers steer clear of the country. With storage systems filling up, upstream output might need to be further curtailed. "Storage is almost at top capacity. We are just days ahead of being forced to shut production at some eastern oilfields," a PDVSA executive said to Reuters. The Petropiar oil blending facility, in which Chevron is a co-operator, suspended operations. That cut production in half at an oil filed that feeds the facility, according to Reuters.

In Libya, battles over control of the National Oil Corporation are escalating. A subsidiary in the eastern part of the country is breaking away and could seek to export oil on its own. A tug-of-war over the legal authority to export oil has led to sudden disruptions in the past.

Then, of course, there is the possibility of a military strike by the U.S. or Saudi Arabia on Iran. It would likely be utterly catastrophic for all involved as it would dramatically increase the odds of an all-out war. Iranian officials have said as much. In a regional war, it's hard to imagine a scenario in which a much greater volume of oil production capacity is not knocked offline.

By Nick Cunningham of Oilprice.com
More Top Reads From Oilprice.com:

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Oil Markets Are One Outage Away From Crisis | OilPrice.com

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The supply disruptions in the oil market may not be over, despite volatility and prices easing in the days after the Abqaiq attack. The repairs at the Abqaiq processing facility are on an extremely tight timetable.

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How Devastating Another Oil Crisis will be.

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How Devastating Another Oil Crisis will be.

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While there has not been an oil crisis since 1979, it is rumored that it is definitely possible for one to happen again, and that it is getting more likely each year as time goes on. The website claims that the hoarding of oil is actually one of the biggest thing that could be causing this as OPEC countries tend to hold onto their oil, even after the 1973 crisis but just not as much. It is still an issue as all countries need oil to prosper, and people say if any oil crisis were to occur, it would be because of oil hoarding by the middle eastern countries.

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Most people think of an oil crisis as a major loss of oil supply from some political event which creates a shortage, leading to gasoline lines, a scramble for supplies, and soaring prices. Such has not really occurred since 1979, leading to a fair amount of complacency; as the recent tanker attacks in the Persian Gulf resulted in a minor blip in oil prices. Many pointed to the 1980s Tanker War between Iran and Iraq, which had no noticeable effect on prices as informative.

But when I was a boy, we had real oil crises. (Barefoot, uphill, in the snow, both ways) The 1979 Iranian Revolution saw not just a huge surge in prices, but massive upheaval in the industry's structure. Within a couple of years, not only had prices tripled, but the dominant role of the Seven Sisters (BP, Chevron, Exxon, Gulf, Mobil, Shell and Texaco) was greatly diminished. Most exporters took over the task of selling their own oil and many consuming nation governments began buying directly from state-owned oil companies.

The forgotten element in all this was hoarding: from early April to end September 1979, OECD inventories rose by 500 million barrels, the most rapid increase in history. This despite the fact that by April 1979, supply had returned to normal: Iran's production was partly restored and other countries, especially Saudi Arabia, replaced the lost volumes. The implication is that for six months or more, over 3 million barrels a day was removed from the market and placed into storage; without that, prices would not have risen significantly. (The 1990 Gulf War I saw a 50% increase, for example, versus the 300% in 1979/80.)

That there has not been a similar inventory build since then owes, in part, to the much more flexible market. Although there are no precise estimates, about one-third of the world's oil trade is sold on the spot market instead of long-term contracts. In the 1970s, the amount of oil sold on the spot market was small, around 5%, and during the Iranian Oil Crisis, spot oil dried up as uncertainty led to sellers holding on to all supplies. In the 1990 Gulf War, buyers who lost supply were mostly able to scoop up spot barrels.

Uncertainty is a major reason for hoarding and explains why it is effectively rational behavior and thus hard to regulate. People in a lifeboat with a limited supply of food who don't know when they will be rescued ration or hoard their food. Similarly, an oil refinery without a steady supply, or receiving oil from an unreliable source (think of the present Libyan situation), will tend to keep more inventory on hand to cope with fluctuations in supply.

The occasional tanker attack is unlikely to move prices and the other extreme, major, damaging attacks on oil fields, could natural send them soaring. But additionally, even a low level of violence whose duration and intensity is uncertain, could mean all levels of the industry trying to retain the maximum number of barrels. Without much spare capacity, this demand would put unrelenting pressure on the price. Similarly, if producers like Saudi Arabia are unwilling to produce barrels that they know will just go into storage, as in 1979, then prices will shoot up.

A wild card in all this is the much greater role of national oil companies both as importers and overseas producers. In 1980, oil imports to China and India were less than 1% of traded oil, while the U.S. was close to 20%; now, China and India import about one-quarter of traded oil, while the U.S. share is below 10%. Since both Chinese and Indian imports are largely controlled by state-owned firms, it can be assumed that they will tend to hold on to any oil they have in a major crisis, rather than balancing the market as international oil firms (mostly) did in 1973 and 1979. Recall that many governments in 1979, including the U.S.', encouraged oil companies to maximize supplies to their citizens, disregarding agreements to share oil with allies during crises.

Further, Chinese companies are producing about 2 mb/d overseas at present. Some of that might be sold off into the spot market or swapped to take advantage of arbitrage opportunities, but in another oil crisis, the government seems likely to discourage its firms from releasing any oil onto the open market.

Overall, there is always a danger of hoarding creating (or responding to) a panic and sending prices far above what the market balance would justify in a crisis, and it's not clear if importing governments would deploy their strategic reserves effectively. (They have not in the past; subject for another post. See also the recent EPRINC paper by John Shages.) Past discussions with policymakers that I've been part of usually ended inconclusively, especially as the presence of importing national oil companies was still minor. It might be time to revisit the question.

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The Next Oil Crisis Could Find Us Very Unprepared

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Most people think of an oil crisis as a major loss of oil supply from some political event which creates a shortage, leading to gasoline lines, a scramble for supplies, and soaring prices. Such has not really occurred since 1979, leading to a fair amount of complacency; as the recent tanker attacks in the Persian Gulf resulted in a minor blip in oil prices.

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This website discusses the history of oil and oil crisis overseas over the years and the possibility of another one occurring. This perspective of this website is from a Japan Oil producing perspective, and how they were impacted from OPEC countries and how the cost of producing oil in their own country was too high for the time being, causing them to shift over to middle eastern countries to mine for them as they could not afford it anymore. OPEC truly had taken over oil, and it showed no signs of stopping to the point where other countries were being dragged into it as well.

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The first oil crisis erupted in October 1973, spurred by the Fourth Middle East War (Yom Kippur War). Rising oil prices resulted in skyrocketing inflation or so-called vicious price spiral that directly impacted consumers and industry.
Due to government intervention in prices, the oil companies were unable to cover the rise in crude oil prices by increasing product prices, putting pressure on the pricing structure that was focused on income from gasoline alone. The effects of this would be felt in the future as well.
Also, as leadership on petroleum shifted from the major oil companies to OPEC, Idemitsu quickly decided to advance its operations into the Middle East, in light of the need to secure crude-oil supplies. In April 1973, it opened the Middle East Office in Beirut, which would serve as a base for opening a succession of offices in Tehran, Iran, Kuwait, and Riyadh, Saudi Arabia, as it strengthened its relations with oil-producing countries through direct trading in crude oil.
At the same time, Idemitsu also began full-fledged operations for purchasing and trading of crude oil and petroleum products on international petroleum markets immediately after the oil crisis, based in New York, London, and Singapore.

An Idemitsu overseas representative visits the state-run oil company in Abu Dhabi

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The First Oil Crisis and Advancing Overseas | History | Idemitsu Kosan Global

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The first oil crisis erupted in October 1973, spurred by the Fourth Middle East War (Yom Kippur War). Rising oil prices resulted in skyrocketing inflation or so-called vicious price spiral that directly impacted consumers and industry.Due to government intervention in prices, the oil companies were unable to cover the rise in crude oil prices by increasing product prices, putting pressure on the pricing structure that was focused on income from gasoline alone.

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This video gives us an insight to the general history of oil over the years, in great detail and brings up points as to why oil is so important within society and the world in general.  It discusses the extreme process of obtaining oil, and many other reasons as to why it is worth so much money.  Also discussed in the video, is the many things that have arisen out of the middle east's attitude when it came to oil, as they were the most richest location with it, but have also caused many conflicts with other countries because of it, and obviously ended up causing the Oil Crisis of 1973. We are given a scale of how much oil is mined per day, and based off this, we are able to make our judgments on how much oil might just be left in the world.

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Petroleum - Modern history of oil on a Map

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A Video Explaining the Recent History of an Oil Crisis in Brief Detail.

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A Video Explaining the Recent History of an Oil Crisis in Brief Detail.

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In this short, but very informative video, we learn about supply and demand, the companies that do work using oil and petroleum, and the countries involved that have caused oil crisis in the past, and others that have their own method of dealing with oil.  These short videos are the best at explaining things quickly and efficiently. It discusses an organization called OPEC (Organization of the Petroleum Exporting Countries), and which countries make up the organization and how they work, and discusses how OPEC has gained the most power in the oil business over the many years it has been around

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Oil Prices: What's going on? - An Animation

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This website talks about the fears of another oil crisis in the coming years in very in-depth detail. It talks about how it could impact stocks, countries efficiency of producing pretty much everything, and how it can impact our daily lifestyle, for even people that don't care for oil or do not work with it. It also talks about what the future of the world would look like if another oil crisis were to happen. Unfortunately, another oil crisis is guaranteed sometime in the future due to the limited supply of oil on earth, and not just one oil crisis is inevitable. There is always multiple that could occur as the years go on.

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One of the world's leading energy analysts called this week for an independent assessment of global oil reserves because he believes that Middle Eastern countries may have far less than officially stated and that oil prices could double to more than $100 a barrel within three years, triggering economic collapse. Matthew Simmons, an adviser to President George Bush and chairman of the Wall Street energy investment company Simmons, said that "peak oil" -- when global oil production rises to its highest point before declining irreversibly -- was rapidly approaching even as demand was increasing. "This is a new era," Mr Simmons told a conference of oil industry analysts, government officials and academics in Edinburgh. "There is a big chance that Saudi Arabia actually peaked production in 1981. We have no reliable data. Our data collection system for oil is rubbish. I suspect that if we had, we would find that we are over-producing in most of our major fields and that we should be throttling back. We may have passed that point." Mr Simmons told the meeting that it was inevitable that the price of oil would soar above $100 as supplies failed to meet demand. "Demand is pulling away from supply . . . and we have to ask whether we have the resources that we think we do. It could be catastrophic if we do not anticipate when peak oil comes." The precise arrival of peak oil is hotly debated by academics and geologists, but analysts increasingly say that official US Geological Survey estimates that it will not happen for 35 years are over-optimistic. According to the International Energy Agency, which collates data from all oil-producing countries, peak oil will arrive "sometime between 2013 and 2037", with production thereafter expected to decline by about 3% a year. While oil from conventional sources is expected to decline, more and more is expected to come from "unconventional" supplies found in oil-rich rocks, especially in the US and in deposits of tar found in Venezuela. The former UK energy minister Brian Wilson, a supporter of both nuclear power and renewable energy, said that Britain would be unwise to rely completely on importing gas from politically sensitive countries as North Sea reserves declined. "Seventy percent of [UK] electricity by 2020 will come from gas and 90% of that gas will be imported . .¬*. We should be planning for an indigenous energy future," he said. But he added that global reserves were not overestimated. "The concept of peak oil needs to be taken very seriously indeed, [but] my working assumption is that both global oil and gas reserves continue to be significantly underestimated." However, other oil analysts argued strongly that a major financial crisis could occur as soon as 2008. Chris Skrebowski, of the Energy Institute in London, which monitors all major oil discoveries and developments, said depletion of global conventional oil reserves was running at about 5% a year, according to Exxon figures. "Norway, Venezuela, the UK and Indonesia and many others are all declining production. I expect Denmark, Malaysia, China, Mexico and Brunei to peak within three years .¬*.¬*.¬*I estimate that we have, at best, 32 months before [the crisis] hits. Mr Skrebowski predicted, using UK government figures, that production from the British sector of the North Sea would halve within 10¬*years. "We have a congenital bias to optimism . . . 12 fields in the North Sea basin are seeing rising production, but they are mostly small. Overall, production peaked in 1999. It fell 10% last year and 8.5% the year before," he said. "Oil will not run out for many years," said Colin Campbell, former vice-president of Fina and chief geologist of the oil giant Amoco. "The information governments give is grossly unreliable. Oil companies report less than they discover for pragmatic reasons, but Opec countries have overestimated what they think their reserves are." He said many Middle Eastern Opec countries, including Iraq, Saudi Arabia and Kuwait, had all significantly lifted their estimated reserves in the late 1980s in order to benefit from larger quotas, but they had not discovered new fields or changed their estimates since then. "The real issue is not the actual date of peak production -- which I believe is next year -- but what happens during the decline of production. I think we are in for an extended period of restricted economic activity. I do not think that we will adjust very smoothly," he said. Terry Macalister adds: Oil hit $56 per barrel on Monday before falling back to $55 on the New York Mercantile Exchange. Refinery problems in North America pushed up the cost of US light crude more than 60 cents, leaving it close to the record of $58.28 set in April. Meanwhile the Bush administration welcomed Saudi Arabia's plan to invest $50bn to boost the kingdom's crude oil production to meet future demand, but conceded that the plan may not have an immediate effect on oil prices. President Bush discussed the plan with Crown Prince Abdullah of Saudi Arabia during a meeting at the president's Texas ranch. "The crown prince understands that it is very important to make sure prices are reasonable. High prices will damage markets," Mr Bush said before welcoming the Saudi leader.

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One of the world's leading energy analysts called this week for an independent assessment of global oil reserves because he believes that Middle Eastern countries may have far less than officially stated and that oil prices could double to more than $100 a barrel within three years, triggering economic collapse.