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The Shocking history of oil (ch.1) (History of International Oil: the…

- - - - The movement was particularly dominated by François Quesnay (1694–1774) and Anne-Robert-Jacques Turgot (1727–1781).[2] It immediately preceded the first modern school, classical economics, which began with the publication of Adam Smith's The Wealth of Nations in 1776.
      - Physiocracy (French: Physiocratie; from the Greek for "government of nature") is an economic theory developed by a group of 18th century Enlightenment French economists who believed that the wealth of nations was derived solely from the value of "land agriculture" or "land development" and that agricultural products should be highly priced.[1] Their theories originated in France and were most popular during the second half of the 18th century. Physiocracy is perhaps the first well-developed theory of economics.
    - - reached the conclusion that the class of landlords nd the rents they extracted were to blame of rising corn prices. Smith thus referred to a monopoly rent, which Karl Marx would later call absolute rent.
    - - It was the growth of population (nd hence of demand) that was to blame for rising corn prices, and which explained rising rents.
      - cleared the way for modern economics as well: there was no place for land in modern economics and reduced the factors to two with capital as the dominant factor and labour as the subordinate one.
      - Ricardo advocated free trade, so to bring down the price of corn through worldwide competition
    - - natural resource ownership is an issue of minor importance and the history of oil is the history of the oil and gas companies
      - the other viewpoint is that ownership is of great relevance
  - - - A royalty is a payment made by one party, the licensee or franchisee to another that owns a particular asset, the licensor or franchisor for the right to ongoing use of that asset. Royalties are typically agreed upon as a percentage of gross or net revenues derived from the use of an asset or a fixed price per unit sold of an item of such, but there are also other modes and metrics of compensation.[1][2][3][4][5][6][7] A royalty interest is the right to collect a stream of future royalty payments.
- - - - 1973 the Yom Kippur war broke out
      - also known as the 1973 Arab–Israeli War, was a war fought by a coalition of Arab states led by Egypt and Syria against Israel from October 6 to 25, 1973. The fighting mostly took place in the Sinai and the Golan Heights, territories that had been occupied by Israel since the Six-Day War of 1967. Egyptian President Anwar Sadat also wanted to reopen the Suez Canal. Neither specifically planned to destroy Israel, although the Israeli leaders could not be sure of that.
      - The war began when the Arab coalition launched a joint surprise attack on Israeli positions in the Israeli-occupied territories on Yom Kippur, the holiest day in Judaism, which also occurred that year during the Muslim holy month of Ramadan.[58] Egyptian and Syrian forces crossed ceasefire lines to enter the Sinai Peninsula and the Golan Heights respectively. Both the United States and the Soviet Union initiated massive resupply efforts to their respective allies during the war, and this led to a near-confrontation between the two nuclear superpowers.
    - - for Adelman etc this was a shock because even on a theoretical level this could not be happening
    - - Oil shock
        
        Summary
        
        The embargo was a response to American involvement in the 1973 Yom Kippur War. Six days after Egypt and Syria launched a surprise military campaign against Israel, the US supplied Israel with arms. In response to this, the Organization of Arab Petroleum Exporting Countries (OAPEC, consisting of the Arab members of OPEC plus Egypt and Syria) announced an oil embargo against Canada, Japan, the Netherlands, the United Kingdom and the United States
        
        The crisis had a major impact on international relations and created a rift within NATO. Some European nations and Japan sought to disassociate themselves from United States foreign policy in the Middle East to avoid being targeted by the boycott. Arab oil producers linked any future policy changes to peace between the belligerents. To address this, the Nixon Administration began multilateral negotiations with the combatants. They arranged for Israel to pull back from the Sinai Peninsula and the Golan Heights. By January 18, 1974, US Secretary of State Henry Kissinger had negotiated an Israeli troop withdrawal from parts of the Sinai Peninsula. The promise of a negotiated settlement between Israel and Syria was enough to convince Arab oil producers to lift the embargo in March 1974.