The Tinderbox Case Study

In the second half of the 20th century, Western oil companies were experiencing a time of enormous growth and prosperity. Exploration out into the Middle East had proven extremely successful, and oil was plentiful. As these companies saturated the markets, however, the price of oil along with the profits of major oil producing countries dropped dramatically, resulting in a feeling of bitterness. Consisting of mostly undeveloped arid lands at the time, these oil producers relied on moderately priced oil in order advance and flourish, something which Western oil companies overlooked. In the 7th installment of the Prize titled, “The Tinderbox,” we examine the up rise of oil producers and the instability generated by fluctuating oil prices. During the 20th century, British forces based in the Persian Gulf had been the care takers of the area. As an economy that depended heavily on the properties of oil, Britain took special care in protecting its interests in the Gulf states including country of Kuwait, which happened to lay on top of 10% of the world oil supply. The Presence of the brits prevented warfare and invasions among the neighboring countries, but like anything, this artificial peace …show more content…
The Tehran agreement, as it came to be known, was facilitated by Saudi Arabia oil minister, a western educated individual who used, “sweet reasonableness,” to get a favorable deal. Fearing that the oil producers may take over their assets, Western oil companies had no real choice but to accept the terms. At this point, it was becoming more apparent that power was shifting over to the oil producers. Encouraged by their overwhelming success at the conference, some oil nations began to see the oil as more than just a resource. In the eyes of some, oil was also the perfect political weapon, or what they came to call the “oil