Anglais des affaires

Pascale DROGUE

Oil Shocks

SOMMAIRE

Words and grammar youll need to know Key Ideas The 1973 Oil Shock The 1979 Oil Crunch Ups and Downs

WORDS YOULL NEED TO KNOW

Prices remained steady Les prix sont rests stables The first oil shock occurred in 1973 Le premier choc ptrolier a eu lieu en 1973

WORDS YOULL NEED TO KNOW

It set quotas to regulate output and balance supply and demand Il a tabli des quotas pour rguler la production et quilibrer loffre et la demande Americans led an energy squandering lifestyle Les amricains menaient un train de vie energivore

WORDS YOULL NEED TO KNOW

OPEC became aware of its clout LOPEP a pris conscience de son poids (pouvoir) Exploration of new fields came to a standstill Lexploration de nouveaux champs sarrta

WORDS YOULL NEED TO KNOW

The hike in oil prices triggered inflation Laugmentation du prix du ptrole a dclench linflation Third world countries were the hardest hit Les pays du tiers monde furent les plus durement touchs

WORDS YOULL NEED TO KNOW

A depleting resource Une ressource qui spuise In the U.S belt-tightening measures were implemented Aux Etats- Unis une politique daustrit fut mis en place

WORDS YOULL NEED TO KNOW

The oil glut was provoked by Saudi Arabia La surabondance de ptrole a t provoque par lArabie Saoudite

WORDS YOULL NEED TO KNOW

Cut (cut/cut) - verb go down- verb drop- verb and noun plummet-verb Price increase - noun Surge - noun Skyrocket - verb hike-- verb and noun soar-verb Flare up verb Rise- rose/risen verb and noun

Curtail - verb Fall- fell/fallen- verb and noun

WORDS YOULL NEED TO KNOW

The price fell sharply Le prix a chut brutalement It declined steadily Il a baiss rgulirement a boom une expansion a boon une aubaine

A BIT OF GRAMMAR

5 million barrels millions of barrels The glut may not have been a longstanding boon.
MAY + HAVE + verbe au participe pass En utilisant cette structure je porte un jugement maintenant, aprs coup sur quelque chose qui se situe dans le pass.

A BIT OF GRAMMAR

Up until 1986 demand for OPEC oil kept on falling. Jusqu 1986 la demande pour le ptrole en provenance de LOPEP na cess de chuter.

A BIT OF GRAMMAR

The price of oil soared to 12 $

Pour exprimer le prix atteint on utilise to Le prix du ptrole a atteint 12 $

The price of oil soared by 12%

Pour exprimer le montant de laugmentation on utilise by

KEY IDEAS

Before 1973 the price of crude oil remained steady The cartel made prices go down OPEC (Organization of oil exporting countries) was founded to counter the price drops Key dates: 1973, 1979, 1990, 2005, 2007 OPEC was founded to respond to the price drops provoked by the cartel.

KEY IDEAS

The aim of OPEC was to pursue stability for the benefit of both oil producers and consumers. To maintain stability, it set quotas to maintain balance between supply and demand. In the early 70s the power to set prices shifted from the cartel to OPEP Oil shocks found ground in economic or geo political conflicts

THE 1973 OIL SHOCK

Reasons
American lifestyle in 1973 Major reason : Israel refused to withdraw (se retirer) from Egypts Sinai Peninsula. Israel refused to do so. Consequently, on October 1973 King Faisal of Arabia retaliated (prendre des mesures de reprsailles) by imposing an embargo on shipments of oil to the countries that had supported Israel. The U.S.A, the Netherlands, Portugal and South Africa.

THE 1973 OIL SHOCK

Gas guzzling cars voiture gourmande en carburant. Americans led an energy squandering lifestyle driving gas guzzling cars. The price of oil soared to 12 $. Pour exprimer le prix atteint on utilise to Le prix du ptrole a atteint 12 $.

THE 1973 OIL SHOCK

Key fact
The 1973 oil shock found ground in a geopolitical conflict.

THE 1973 OIL SHOCK

Price increase
Arab nations cut production by 5 million barrel a day. As a result the shortage led to a 400% increase in the price of crude oil OPEC had the power to control prices

THE 1973 OIL SHOCK

Price increase
American energy policy
in the short run , America imposed price controls on domestically produced oil in the long run , U.S exploration of oil fields came to a standstill. The U.S did not manufacture energy saving cars, And did not insulate their homes.

THE 1973 OIL SHOCK

Key facts
U.S remained reliant on oil. OPEC became aware of its clout (poids, pouvoir) to control prices
Since the U.S held down prices on domestic oil, it did not feel the pangs (affres) of high prices and did not take enough steps to save energy. The U.S was not prepared for the next oil shock.

THE 1973 OIL SHOCK

Key facts
The consequence of the oil shock was recession in most OECD countries.

THE 1973 OIL SHOCK

Impact of surging oil prices on the economy

inflation trade deficits in OECD countries GDP (gross domestic product) went down from 6% in 1973 to0.6% in 1974

THE 1973 OIL SHOCK

Impact of surging oil prices on the economy

petrodollars were re-invested a few measures were taken

THE 1979 OIL CRUNCH

Reasons and consequences

in the early eighties when Iran was taken over by Ayatollah Khomeini , oil output in Iran was curtailed. the situation was worsened by the Iran-Iraq conflict

THE 1979 OIL CRUNCH

Reasons and consequences

consequently the price of crude oil doubled reaching 35$ in 1981
1971 - 12$ 1978 - 24$ 1981 - 35$

THE 1979 OIL CRUNCH

Reasons and consequences

widespread panic resulted
inflation running trade deficits unemployment in oil related industries petrodollars were re-invested in weapons

THE 1979 OIL CRUNCH

Reasons and consequences

then the price started to drop
new producing countries did not comply with (respecter) OPEC quotas demand for OPEC oil declined to the benefit of new producing countries Saudi Arabia refused to cut its output

THE 1979 OIL CRUNCH

Measures
U.S. oil output rose and imports from OPEC plummeted from 6.6million barrels per day in 1977 to 4.2 in 1981
by 1986 the barrel had dropped from 35$ to 10$

THE 1979 OIL CRUNCH

Key facts
The 1979 oil crunch found ground in another geopolitical conflict. OPECs clout was undermined (sap) because of the emergence of new oil producing countries. OPEC was powerless in front of the decline

THE 1979 OIL CRUNCH

Key facts
The U.S cut consumption by 34% The U.S became aware that it needed to find alternatives America started to break free from imports

UPS AND DOWNS

The oil glut (surabondance) in the eighties

cause: Saudi Arabia decided to bypass the quotas to get its market share back from new oil producing countries. consequence: Once again better faring economies slowed down their investment in alternative energies. throughout the nineties the price wavered from 25$ to 20$.

UPS AND DOWNS

Key facts
Lower prices were a boon for economies but it slowed drilling in new oil fields, energy conservation and substitutions.