By Cyrus Bina (auth.)
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Additional resources for A Prelude to the Foundation of Political Economy: Oil, War, and Global Polity
In addition, the sphere of new oil discovery was more productive, both prior to and during the period of the 1973–74 crisis (US Department of the Interior 1967, 1976; US Department of Energy 1978a, 1978b). The significance of the above classification will become clear as we proceed to analyze the impact of long-run investments on the production of oil in the United States during the period leading up to the crisis. Intensification and Reversal of the Oil Recovery More than 90 percent of US crude oil was produced from reservoirs located in nine states during the period 1965–74.
The significance of the above classification will become clear as we proceed to analyze the impact of long-run investments on the production of oil in the United States during the period leading up to the crisis. Intensification and Reversal of the Oil Recovery More than 90 percent of US crude oil was produced from reservoirs located in nine states during the period 1965–74. Of this, nearly Wor l d O i l a n d t h e C r i s i s of G l ob a l i z a t ion 29 two-thirds was produced in Texas and Louisiana.
In fact, both the development costs per barrel and total costs per barrel more than tripled during the period 1971–74. This result is in conformity with the tripled level of the US oil prices during the same period. 4 percent increase in exploration costs during the period of 1971–74 (Bina 1985: 76, Table 16). This again points to the aging US oil fields that were scattered in the lower 48 states and thus were the ground zero of global restructuring of oil. Wor l d O i l a n d t h e C r i s i s of G l ob a l i z a t ion 31 The correspondence between the fourfold increase in the “posted price” price of oil in the Middle East, Africa, and Latin America, on the one hand, and the more than threefold increase in US oil development costs, on the other, reveals a significant connection among all oil-producing regions that has been objectified, and at this juncture, through crisis, paved the way for the unification and globalization of oil.