Oil Crisis and OPEC Negotiations

In October 1973, oil companies met with OPEC in Vienna to discuss oil prices. However, the meeting was disrupted by the outbreak of war between Egypt and Israel. As a result, OPEC decided to set oil prices independently, leading to severe shortages. The UK government, under Prime Minister Edward Heath, intervened by directing BP to prioritize UK oil supply, despite international obligations. This marked a shift towards government control over national resources.

What event disrupted the initial meeting between oil companies and OPEC in Vienna in 1973?

• An economic recession

• The outbreak of war between Egypt and Israel

• A political coup

• A natural disaster

What was the result of the war on the negotiations between oil companies and OPEC?

• Oil companies gained more power

• Negotiations continued as planned

• OPEC took control of oil pricing

• The negotiations were postponed indefinitely

Which country's oil remained unaffected and became a key supply source for BP during the shortages?

• Saudi Arabia

• Iran

• Iraq

• Kuwait

What action did British Prime Minister Edward Heath take in response to the oil crisis?

• He increased oil imports from the US

• He decided to exert control over BP's oil distribution

• He reduced oil prices

• He nationalized all oil companies in the UK

What was the potential consequence of the UK's directive to prioritize domestic oil supply?

• Nationalization of BP's European companies

• A decrease in oil prices

• Increased oil imports from Europe

• An increase in oil production