Topic: is this the real reason for the drop in petrol prices in the early 1980s

[piersdad]

From Energy and Capital

The Crippling Power of Oil
People who think that the oil crisis of 1973 was strictly an embargo have another think coming.
It was an omen. And the first sign of our vulnerability to the ever-dwindling supply of oil in the world.
You see, in October of 1973, Middle Eastern OPEC states stopped exports to the U.S. and other western nations. They meant to punish all the infidels that supported Israel, their foe, in the Yom Kippur War. It was then that these oil-rich desert countries realized the extent of the world-halting power they possessed.
The lesson nearly drove us mad . . .
Blocking just 5% of our imported oil supply was enough to nearly quadruple the price overnight.
It was a lesson we should never have forgotten. But it wasn’t the first time—or the last—that oil, not weapons, proved to be the true “war machine.”
In World Wars I and II, sabotaging the German supply lines was quite possibly the most crucial element to thwarting Germany’s military.
The truth about oil

This was in adobe format so I have made a brief description of what they have written,

The oil crisis of 1973 was not strictly an embargo
It was an omen, the first sign of the west’s vulnerability
In 1973 OPEC stopped exports to U S and other  western countries
They meant to punish all the infidels who supported Israel.
It was then the oil rich nations realized the power they had
Over the world.
It was a lesson they would not forget
Second world war and Germany was a precedent when their supply of oil was stopped

 Oil was so important to the strength of a nations economy that it was the united states final plan of attack to crush the soviets.
Russian economy depended  on oil and weapons to anti western countries.
High oil prices  from OPEC kept exports to Europe and other countries profitable and allowed Iraq, Iran, and Syria to purchase advanced soviet weapons and those countries had been threatening Saudi Arabia for years.
The idea was to bankrupt the Soviet Union by having Saudi dropping their oil prices far below the soviet could afford to sell for. Killing the giant communist income.
In short the U S taught the Saudis how to cook the books and how to make their supplies look larger than they were.
And thus keep prices low.
1985 the oil was $26.46 and 1986 plummeted to $10.25
The soviets could not compete and their economy began to collapse.
Part of the bargain was operation Desert Storm
The book cooking lessons learned became wide spread among OPEC.
As well as the large oil companies.
After decades of inflating actual reserves with out finding any more significant oil the world is soon to find out there is not enough to go around.
With exponential increase in oil consumption we are faced with a big problem.
Oil is harder to dig for and extract.
Oil production is dropping as oil demand is rising.
By 2025 the world demand for oil is going to be 60% higher than it is today
The OPEC reserve estimates are political more than actual.
  How can a country explain they have 87 billion barrels more oil with out finding any more.
Some of the Saudi fields are injecting huge amounts of sea water into the oil fields to enable pressure to extract the last bit of oil and the underground reservoir is now 50% sea water.
Previous spikes in oil prices have sparked recessions.
This time the effects have been much worse and the projected biggest recession since 1929

50%  of the strength of Americas currency depends on cheap plentiful oil
If OPEC shifted their currency from the American dollar to the euro the U S  dollar would plummet drastically.

http://energyandcapital.com/reports/TruthAboutOil.pdfhttp://energyandcapital.com/reports/TruthAboutOil.pdf
just checked this site and i has a bad rep so beware  (just have to include the ref due to  copy write)