"A world oil embargo?" Topic

What if the oil producing countries stopped selling oil to all customers, except the USA, for six months or even a year?

Sales to the USA were not increased and were not renegotiated.

The reason was not clear but was interpreted as either an attempt to hike prices or to create a new political world order with nations subservient to OPEC, or a similar organisation.

What do you see as the most likely response? In lieu of the USA and its national interest policy, which country or countries would lead the response and how? NATO?

Very unlikely scenario. It would be more likely that hostile nations would sell us oil cheaply by upping production. Since almost all current oil production done by friendly corporations is done on debt, the lowered prices would lead to a default/bailout cycle to keep the big oil companies afloat (too big to fail).

For your scenario, I would start out the briefing with the top government officials and bankers having lots of emergency meetings concerning the economy without any press releases or official announcements link

The world isn't as oil dependent as it was back in 1991, and not all oil producers will follow Saudi Arabia's lead. It would be a boon to countries like Iran.

Nothing to see here, folks.

As 28mm suggests 'the oil producing countries' are in great disarray, no longer an entity for political purposes. The political embodiment of 'the oil producing countries' used to be OPEC. Saudi has recently broken OPEC, in order to hurt, principally, their arch-rivals Iran, as well as all other competing oil producers.

You mean our friends the Saudis who mentioned the U.S. oil fracking as the main reason they are trying to drive prices down and break everyone else. First they bomb our cities now they try and drive us to stop drilling.

Yes, the Oil producing countries are not acting as a cartel as ther did in the early 1970's, which means they are likely to keep prices low as they all try to cash in.

I live in Texas so I am can't talk about future plans. But if I could…..

The US and Russia would cash in with increased production to fill the void.

Most countries in the world have a few months oil in storage anyway. Plus how long would the oil producing world survive if a goods embargo by the rest of the world was put in place as retaliation?

As WeeSparky stated an unlikely scenario for all the reasons given. I think GariisonMinisatures gives the best reason such an attempt would fail is that the first world can respond with far more economic muscle than the OPEC members can. You can't eat that oil after all. Also as Bear Pilot mentioned the US and Russian would just up production.

The fusion power that has been developed but suppressed by Big Oil would finally be released, providing cheap and almost inexhaustible energy from seawater. Big Oil would quickly panic and would almost be giving it away to maintain it's relevance. Millions of people who work for Big Oil would be looking for other work. Hey, it's all hypothetical, so good as any other scenario. :" > )

Things would be a lot better in Oklahoma and I would probably get a raise.

Kevin

…the US and Russia would just up production

If they are oil producers then, sorry, they are both in on this conspiracy!

Interesting replies. I kinda looked upon the scenario as the creation of either a new world order or a new age of Imperialism. Maybe not.

Thanks for your replies.

This isn't 1973, and there isn't an oil producers cartel any more.

Production restrictions would undoubtedly have the usual predictable effects on oil prices, which in turn would stimulate production from alternate sources.

What we are seeing now is the death throes of the old New World Order of oil producers. And good riddance.

Actually the UK is an oil producer as well, which might cause problems within the EU…

If we're still in the EU at the time …

A one word answer is FRACK!!