<html xmlns:xsi="http://www.w3.org/2000/10/XMLSchema-instance" xmlns:my="http://localhost/namespace"> <head> <META http-equiv="Content-Type" content="text/html; charset=UTF-16"> <title>Annual Oil Market Chronology Energy Data, Statistics and Analysis - Oil, Gas, Electricity, Coal</title> <meta name="description" content="Annual Oil Market Chronology Energy Data, Statistics and Analysis - Oil, Gas, Electricity, Coal"> <meta name="keywords" content="Annual Oil Market Chronology Energy Data, Statistics and Analysis - Oil, Gas, Electricity, Coal"> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> <meta http-equiv="pragma" content="no-cache"> <LINK HREF="../cabs.css" TYPE="text/css" REL="StyleSheet"> </head> <body> <table width="670px" cellspacing="0" cellpadding="0" style="border:solid 1px #000000"> <tr valign="top"> <td align="left" colspan="2"><img src="../images/PrintHeader.jpg" alt="Country Analysis Briefs Header"><br><span class="cssPrintHeader" style="padding-left:10px;">Annual Oil Market Chronology<br></span><span class="cssContent">Last Updated: July 2007<p></p></span></td> </tr> <tr valign="top"> <td><img src="../images/Blank.gif" width="125" height="1"></td> <td><img src="../images/Blank.gif" width="545" height="1"></td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">Overview</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"> <div>This chronology was originally published by the Department of Energy's Office of the Strategic Petroleum Reserve, Analysis Division. Updates for 1995-2006 are from the Energy Information Administration. Please click <a href="http://www.eia.doe.gov/emeu/cabs/emchron.html"><span style="">here</span></a> for the latest monthly chronology and for a more detailed chronology for past years. <p></p> </div><span class="cssSubheading1">World Nominal Oil Price Chronology: 1970-2006</span><br><div><a href="images/chron_apr2007.xls"><div align="center" title="" style="page-break-inside: avoid;"><img src="images/chron-june2007.gif" alt="" border="0" style="" class="cabs_graphic"></div></a><p></p> </div> <div>The price data graphed above are in nominal terms, i.e., they are in "dollars-of-the-day" and have not been adjusted for inflation. Clicking the picture above will enable you to access oil prices in real terms that <span style="font-weight: bold;">are</span> adjusted for inflation. Historical and forecast real and nominal crude oil and gasoline price information is maintained on a more frequent basis on the <a href="http://www.eia.doe.gov/emeu/steo/pub/contents.html"><span style="">Short Term Energy Outlook Webpage</span></a>. <p></p> </div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">1.</span><span class="cssListCharSpacing">OPEC begins to assert power; raises tax rate &amp; posted prices </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">2.</span><span class="cssListCharSpacing">OPEC begins nationalization process; raises prices in response to falling US dollar. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">3.</span><span class="cssListCharSpacing">Negotiations for gradual transfer of ownership of western assets in OPEC countries </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">4.</span><span class="cssListCharSpacing">Oil embargo begins (October 19-20, 1973) </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">5.</span><span class="cssListCharSpacing">OPEC freezes posted prices; US begins mandatory oil allocation </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">6.</span><span class="cssListCharSpacing">Oil embargo ends (March 18, 1974) </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">7.</span><span class="cssListCharSpacing">Saudis increase tax rates and royalties </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">8.</span><span class="cssListCharSpacing">US crude oil entitlements program begins </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">9.</span><span class="cssListCharSpacing">OPEC announces 15% revenue increase effective October 1, 1975 </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">10.</span><span class="cssListCharSpacing">Official Saudi Light price held constant for 1976 </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">11.</span><span class="cssListCharSpacing">Iranian oil production hits a 27-year low </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">12.</span><span class="cssListCharSpacing">OPEC decides on 14.5% price increase for 1979 </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">13.</span><span class="cssListCharSpacing">Iranian revolution; Shah deposed </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">14.</span><span class="cssListCharSpacing">OPEC raises prices 14.5% on April 1, 1979 </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">15.</span><span class="cssListCharSpacing">US phased price decontrol begins </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">16.</span><span class="cssListCharSpacing">OPEC raises prices 15% </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">17.</span><span class="cssListCharSpacing">Iran takes hostages; President Carter halts imports from Iran; Iran cancels US contracts; Non-OPEC output hits 17.0 million b/d </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">18.</span><span class="cssListCharSpacing">Saudis raise marker crude price from 19$/bbl to 26$/bbl </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">19.</span><span class="cssListCharSpacing">Windfall Profits Tax enacted </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">20.</span><span class="cssListCharSpacing">Kuwait, Iran, and Libya production cuts drop OPEC oil production to 27 million b/d </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">21.</span><span class="cssListCharSpacing">Saudi Light raised to $28/bbl </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">22.</span><span class="cssListCharSpacing">Saudi Light raised to $34/bbl </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">23.</span><span class="cssListCharSpacing">First major fighting in Iran-Iraq War </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">24.</span><span class="cssListCharSpacing">President Reagan abolishes remaining price and allocation controls </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">25.</span><span class="cssListCharSpacing">Spot prices dominate official OPEC prices </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">26.</span><span class="cssListCharSpacing">US boycotts Libyan crude; OPEC plans 18 million b/d output </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">27.</span><span class="cssListCharSpacing">Syria cuts off Iraqi pipeline </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">28.</span><span class="cssListCharSpacing">Libya initiates discounts; Non-OPEC output reaches 20 million b/d; OPEC output drops to 15 million b/d </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">29.</span><span class="cssListCharSpacing">OPEC cuts prices by $5/bbl and agrees to 17.5 million b/d output  January 1983</span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">30.</span><span class="cssListCharSpacing">Norway, United Kingdom, and Nigeria cut prices </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">31.</span><span class="cssListCharSpacing">OPEC accord cuts Saudi Light price to $28/bbl </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">32.</span><span class="cssListCharSpacing">OPEC output falls to 13.7 million b/d </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">33.</span><span class="cssListCharSpacing">Saudis link to spot price and begin to raise output  June 1985 </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">34.</span><span class="cssListCharSpacing">OPEC output reaches 18 million b/d </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">35.</span><span class="cssListCharSpacing">Wide use of netback pricing </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">36.</span><span class="cssListCharSpacing">Wide use of fixed prices </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">37.</span><span class="cssListCharSpacing">Wide use of formula pricing </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">38.</span><span class="cssListCharSpacing">OPEC/Non-OPEC meeting failure </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">39.</span><span class="cssListCharSpacing">OPEC production accord; Fulmar/Brent production outages in the North Sea </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">40.</span><span class="cssListCharSpacing">Exxon's Valdez tanker spills 11 million gallons of crude oil </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">41.</span><span class="cssListCharSpacing">OPEC raises production ceiling to 19.5 million b/d  June 1989</span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">42.</span><span class="cssListCharSpacing">Iraq invades Kuwait </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">43.</span><span class="cssListCharSpacing">Operation Desert Storm begins; 17.3 million barrels of SPR crude oil sales is awarded </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">44.</span><span class="cssListCharSpacing">Persian Gulf war ends </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">45.</span><span class="cssListCharSpacing">Dissolution of Soviet Union; Last Kuwaiti oil fire is extinguished on November 6, 1991 </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">46.</span><span class="cssListCharSpacing">UN sanctions threatened against Libya </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">47.</span><span class="cssListCharSpacing">Saudi Arabia agrees to support OPEC price increase </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">48.</span><span class="cssListCharSpacing">OPEC production reaches 25.3 million b/d, the highest in over a decade </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">49.</span><span class="cssListCharSpacing">Kuwait boosts production by 560,000 b/d in defiance of OPEC quota </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">50.</span><span class="cssListCharSpacing">Nigerian oil workers' strike </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">51.</span><span class="cssListCharSpacing">Extremely cold weather in the US and Europe </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">52.</span><span class="cssListCharSpacing">U.S. launches cruise missile attacks into southern Iraq following an Iraqi-supported invasion of Kurdish safe haven areas in northern Iraq. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">53.</span><span class="cssListCharSpacing">Iraq begins exporting oil under United Nations Security Council Resolution 986. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">54.</span><span class="cssListCharSpacing">Prices rise as Iraq's refusal to allow United Nations weapons inspectors into "sensitive" sites raises tensions in the oil-rich Middle East. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">55.</span><span class="cssListCharSpacing">OPEC raises its production ceiling by 2.5 million barrels per day to 27.5 million barrels per day. This is the first increase in 4 years. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">56.</span><span class="cssListCharSpacing">World oil supply increases by 2.25 million barrels per day in 1997, the largest annual increase since 1988. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">57.</span><span class="cssListCharSpacing">Oil prices continue to plummet as increased production from Iraq coincides with no growth in Asian oil demand due to the Asian economic crisis and increases in world oil inventories following two unusually warm winters. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">58.</span><span class="cssListCharSpacing">OPEC pledges additional production cuts for the third time since March 1998. Total pledged cuts amount to about 4.3 million barrels per day. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">59.</span><span class="cssListCharSpacing">Oil prices triple between January 1999 and September 2000 due to strong world oil demand, OPEC oil production cutbacks, and other factors, including weather and low oil stock levels. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">60.</span><span class="cssListCharSpacing">President Clinton authorizes the release of 30 million barrels of oil from the Strategic Petroleum Reserve (SPR) over 30 days to bolster oil supplies, particularly heating oil in the Northeast. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">61.</span><span class="cssListCharSpacing">Oil prices fall due to weak world demand (largely as a result of economic recession in the United States) and OPEC overproduction. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">62.</span><span class="cssListCharSpacing">Oil prices decline sharply following the September 11, 2001 terrorist attacks on the United States, largely on increased fears of a sharper worldwide economic downturn (and therefore sharply lower oil demand).  Prices then increase on oil production cuts by OPEC and non-OPEC at the beginning of 2002, plus unrest in the Middle East and the possibility of renewed conflict with Iraq.</span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">63.</span><span class="cssListCharSpacing">OPEC oil production cuts, unrest in Venezuela, and rising tension in the Middle East contribute to a significant increase in oil prices between January and June.</span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">64.</span><span class="cssListCharSpacing">A general strike in Venezuela, concern over a possible military conflict in Iraq, and cold winter weather all contribute to a sharp decline in U.S. oil inventories and cause oil prices to escalate further at the end of the year. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">65.</span><span class="cssListCharSpacing">Continued unrest in Venezuela and oil traders' anticipation of imminent military action in Iraq causes prices to rise in January and February, 2003.</span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">66.</span><span class="cssListCharSpacing">Military action commences in Iraq on March 19, 2003. Iraqi oil fields are not destroyed as had been feared. Prices fall. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">67.</span><span class="cssListCharSpacing">OPEC delegates agree to lower the cartel s output ceiling by 1 million barrels per day, to 23.5 million barrels per day, effective April 2004. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">68.</span><span class="cssListCharSpacing">OPEC agrees to raise its crude oil production target by 500,000 barrels (2% of current OPEC production) by August 1 in an effort to moderate high crude oil prices. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">69.</span><span class="cssListCharSpacing">Hurricane Ivan causes lasting damage to the energy infrastructure in the Gulf of Mexico and interrupts oil and natural gas supplies to the United States. U.S. Secretary of Energy Spencer Abraham agrees to release 1.7 million barrels of oil in the form of a loan from the Strategic Petroleum Reserve.</span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">70.</span><span class="cssListCharSpacing">Continuing oil supply disruptions in Iraq and Nigeria, as well as strong energy demand, raise prices during the first and second quarters of 2005.</span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">71.</span><span class="cssListCharSpacing">Tropical Storm Cindy and Hurricanes Dennis, Katrina, and Rita disrupt oil supply in the Gulf of Mexico.</span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">72.</span><span class="cssListCharSpacing">In response to the hurricanes, the Department of Energy provides emergency loans of 9.8 million barrels and sold 11 million barrels of oil from the SPR.</span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">73.</span><span class="cssListCharSpacing">Militant attacks in Nigeria shut in more than 600,000 barrels per day of oil production beginning in February 2006. </span></div> <div class="cssListItem" style="margin-left: 30px;"><span style="font-family: Times New Roman;">74.</span><span class="cssListCharSpacing">OPEC members agree to cut the organization s crude oil output by 1.2 million barrels per day effective November 1, 2006. In December, the group agrees to cut output by a further 500,000 barrels per day effective February 2007.</span></div> <p></p> <div>More detail for 2006 <a href="0009.html"><span style="">here</span></a>.<p></p> </div> <div><span style="font-style: italic;">Original concept for the chart was by the Analysis Division in the Office of Management Operations; Strategic Petroleum Reserve. Modified and updated by the Office of Energy Markets and End Use in the Energy Information Administration.</span><p></p> </div> <p></p> </td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">1970s</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"><span class="cssSubheading1">Jump to a<a name="backtotop0779"></a> Specific Year</span><br><div> <table> <tr> <td> <p style="font-size:0.75em;"><a href="#a1970"><span style="">1970</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1971"><span style="">1971</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1972"><span style="">1972</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1973"><span style="">1973</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1974"><span style="">1974</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1975"><span style="">1975</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1976"><span style="">1976</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1977"><span style="">1977</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1978"><span style="">1978</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1979"><span style="">1979</span></a></p> </td> </tr> </table> <p></p> </div><span class="cssSubheading1"></span><br><span class="cssSubheading1">1970</span><br><div><span style="font-weight: bold;">Jan 1 </span>U.S. Federal oil depletion allowance reduced from 27.5 to 22.0 percent.<p></p> </div> <div><span style="font-weight: bold;">May 3 </span>TAP line from Saudi Arabia to the Mediterranean interrupted in Syria, creating all-time tanker rate highs from June to December. <p></p> </div> <div><span style="font-weight: bold;">Sep 4 - Oct 9 </span>Libya raises posted prices and increases tax rate from 50 percent to 55 percent. Iran and Kuwait follow in November.<p></p> </div> <div><span style="font-weight: bold;">Dec 9-12 </span>OPEC meeting in Caracas establishes 55 percent as minimum tax rate and demands that posted prices be changed to reflect changes in foreign exchange rates.<p></p> </div> <div><a href="#backtotop0779"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1971</span><br><div><span style="font-weight: bold;">Jan 12 </span>Negotiations begin in Tehran between 6 Gulf producing countries and 22 oil companies.<p></p> </div> <div><span style="font-weight: bold;">Feb 3-4 </span>OPEC mandates "total embargo" against any company that rejects the 55 percent tax rate.<p></p> </div> <div><span style="font-weight: bold;">Feb 14 </span>Tehran agreement signed. Companies accept 55 percent tax rate, immediate increase in posted prices, and further successive increases. <p></p> </div> <div><span style="font-weight: bold;">Feb 24 </span>Algeria nationalizes 51 percent of French oil concessions. <p></p> </div> <div><span style="font-weight: bold;">Apr 2 </span>Libya concludes five weeks of negotiations with Western oil companies in Tripoli on behalf of itself, Saudi Arabia, Algeria and Iraq. Agreement raises posted prices of oil delivered to Mediterranean from $2.55 to $3.45 per barrel; provides for a 2.5 percent annual price increase plus inflation allowance; raises tax rate from a range of 50-58 percent to 60 percent of posted price.<p></p> </div> <div><span style="font-weight: bold;">Jul 31 </span>Venezuela's Hydrocarbons Reversion Law mandates gradual transfer to government ownership of all "unexploited concession areas" by 1974 and "all their residual assets" by 1983.<p></p> </div> <div><span style="font-weight: bold;">Aug 15 </span>U.S. Government institutes Phase I price controls. Invoking the powers granted to the president by the Economic Stabilization Act of 1970, President Nixon orders 90-day nationwide freeze on all wages, prices, salaries and rents.<p></p> </div> <div><span style="font-weight: bold;">Sep 22 </span>OPEC directs members to negotiate price increases to offset the devaluation of the U.S. dollar.<p></p> </div> <div><span style="font-weight: bold;">Nov </span>U.S. Phase II price controls begin. Plan is to allow for gradual 2-3 percent annual price increases, however, domestic petroleum prices remain at Phase I levels.<p></p> </div> <div><span style="font-weight: bold;">Dec 5 </span>Libya nationalizes British Petroleum concession. <p></p> </div> <div><a href="#backtotop0779"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1972</span><br><div><span style="font-weight: bold;">Jan 20 </span>Six<a name="a1972"></a> exporting countries - Abu Dhabi, Iran, Iraq, Kuwait, Qatar and Saudi Arabia - conclude ten days of meetings with Western oil companies. An agreement is reached to raise the posted price of crude by 8.49 percent to offset the loss in value of oil concessions attributable to the decline in value of the U.S. dollar.<p></p> </div> <div><span style="font-weight: bold;">Mar 11-12 </span>OPEC threatens "appropriate sanctions" against companies that "fail to comply with . . . any action taken by a Member Country in accordance with [OPEC] decisions."<p></p> </div> <div><span style="font-weight: bold;">Jun 1 </span>Iraq nationalizes Iraq Petroleum Company's (IPC) concession owned by British Petroleum, Royal Dutch-Shell, Compagnie Francaise des Petroles, Mobil and Standard Oil of New Jersey (now Exxon). The concessions were valued at over one billion dollars.<p></p> </div> <div><span style="font-weight: bold;">Jun 9 </span>In a show of support for Iraq, OPEC moves to prevent companies whose interests were nationalized in Iraq from increasing production elsewhere; appoints mediators between Iraq and IPC.<p></p> </div> <div><span style="font-weight: bold;">Sep 30 </span>Libya acquires a 50 percent interest in two ENI concessions. <p></p> </div> <div><span style="font-weight: bold;">Oct 27 </span>OPEC approves plan providing for 25 percent government ownership of all Western oil interests operating within Kuwait, Qatar, Abu Dhabi and Saudi Arabia beginning on January 1, 1973, and rising to 51 percent by January 1, 1983. (Iraq declines to agree.) Agreements signed on December 21. <p></p> </div> <div><a href="#backtotop0779"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1973</span><br><div><span style="font-weight: bold;">Jan 11 </span>U.S.<a name="a1973"></a> Phase III price controls begin. Allows for voluntary instead of mandatory price control on all U.S. prices. This does not prevent a sharp rise in heating oil prices caused by a severe winter and shortage of product.<p></p> </div> <div><span style="font-weight: bold;">Jan 17 </span>President Nixon suspends mandatory oil import quota on No. 2 heating oil through April 30.<p></p> </div> <div><span style="font-weight: bold;">Jan 23 </span>Shah of Iran announces that the 1954 operating agreement between a consortium of oil companies and Iran will not be renewed when it expires in 1979. The consortium was formed in 1954 as a means to settle a dispute between a new ministry in Iran and the Anglo-Iranian Oil Company (AIOC). The consortium included Standard Oil of New Jersey, Standard Oil of California, SOCONY-Vacuum, the Texas Company, Gulf, Royal Dutch-Shell, the Compagnie Francaise de Petroles, and the AIOC.<p></p> </div> <div><span style="font-weight: bold;">Feb 28 </span>Iraq and IPC reach an agreement on compensation for nationalization. <p></p> </div> <div><span style="font-weight: bold;">Mar </span>Special Rule No. 1 reimposes mandatory (Phase II) price controls on the 23 largest oil companies. Smaller companies, representing 5 percent of the market, enjoy uncontrolled prices.<p></p> </div> <div><span style="font-weight: bold;">Mar 16 </span>Shah of Iran and Consortium members agree to nationalize all assets immediately in return for an assured 20-year supply of Iranian oil.<p></p> </div> <div><span style="font-weight: bold;">Mar 16-17 </span>OPEC discusses raising prices to offset decline of U.S. dollar value.<p></p> </div> <div><span style="font-weight: bold;">Apr 1 </span>OPEC increases posted prices by 5.7 percent.<p></p> </div> <div><span style="font-weight: bold;">Apr 18 </span>U.S. Government ends Mandatory Oil Import Program. Program, established in 1959 by President Eisenhower, had limited imports of crude and product east of the Rocky Mountains to a percentage of domestic crude production.<p></p> </div> <div><span style="font-weight: bold;">Jun 1 </span>Eight OPEC countries raise posted prices by 11.9 percent. <p></p> </div> <div><span style="font-weight: bold;">Jun 11 </span>Libya nationalizes Bunker Hunt concession; Nigeria acquires 35 percent participation in Shell-BP concession.<p></p> </div> <div><span style="font-weight: bold;">Jun 14 </span>Nixon administration imposes 60-day economy-wide price freeze, superseding Special Rule No. 1 for oil companies.<p></p> </div> <div><span style="font-weight: bold;">Aug </span>Libya nationalizes 51 percent of Occidental Petroleum concession and of the Oasis consortium.<p></p> </div> <div><span style="font-weight: bold;">Aug 17 </span>President Nixon's Cost of Living Council imposes two-tier price ceiling on crude petroleum sales: production of "old" oil (that produced at or below 1972 levels from existing wells) to be sold at March 1973 prices plus 35 cents; production of "new" oil (that produced above 1972 levels from existing wells and oil produced from new wells) to be sold at uncontrolled prices.<p></p> </div> <div><span style="font-weight: bold;">Sep 1 </span>Libya nationalizes 51 percent of nine other companies' concessions: Esso, Libya/Sirte, Mobil, Shell, Gelensberg, Texaco, SoCal, Libyan-American (ARCO), and Grace.<p></p> </div> <div><span style="font-weight: bold;">Sep 5-9 </span>Conference of less developed countries approves forming "producers' associations," calls for withdrawal of Israeli forces from occupied Arab lands.<p></p> </div> <div><span style="font-weight: bold;">Sep 15-16 </span>OPEC supports price hikes and designates six Gulf countries to negotiate collectively with companies over prices. Other members to negotiate individually. <p></p> </div> <div><span style="font-weight: bold;">Sep </span>Kuwait rejects gradual participation increase plan, insists on immediate 60 percent participation.<p></p> </div> <div><span style="font-weight: bold;">Oct 6 </span>Beginning of fourth Arab-Israeli War.<p></p> </div> <div><span style="font-weight: bold;">Oct 7 </span>Iraq nationalizes Exxon and Mobil shares in Basrah Petroleum Company representing 23.75 percent equity in the company.<p></p> </div> <div><span style="font-weight: bold;">Oct 8-10 </span>OPEC meets with oil companies to discuss revision of 1971 Tehran agreement and oil prices. Negotiations fail.<p></p> </div> <div><span style="font-weight: bold;">Oct 16 </span>The Gulf Six (Iran, Iraq, Abu Dhabi, Kuwait, Saudi Arabia and Qatar) unilaterally raise the posted price of Saudi Light marker crude 17 percent from $3.12 to $3.65 per barrel and announce production cuts.<p></p> </div> <div><span style="font-weight: bold;">Oct 17 </span>OPEC oil ministers agree to use oil weapon in Arab-Israeli War, mandate cut in exports, and recommend embargo against unfriendly states.<p></p> </div> <div><span style="font-weight: bold;">Oct 19-20 </span>Saudi Arabia, Libya, and other Arab states proclaim an embargo on oil exports to the United States.<p></p> </div> <div><span style="font-weight: bold;">Oct 23-28 </span>Arab oil embargo extended to the Netherlands.<p></p> </div> <div><span style="font-weight: bold;">Nov 5 </span>Arab producers announce 25 percent cut in production below September levels. Further cuts of five percent are threatened. <p></p> </div> <div><span style="font-weight: bold;">Nov 18 </span>Arab oil ministers cancel the scheduled 5 percent cut in production for EEC.<p></p> </div> <div><span style="font-weight: bold;">Nov 23 </span>Arab summit conference adopts open and secret resolutions on the use of the oil weapon. Embargo extended to Portugal, Rhodesia, and South Africa.<p></p> </div> <div><span style="font-weight: bold;">Nov 27 </span>President Nixon signs the Emergency Petroleum Allocation Act (EPAA). Authorizes petroleum price, production, allocation and marketing controls.<p></p> </div> <div><span style="font-weight: bold;">Dec 9 </span>Arab oil ministers announce a further production cut of 5 percent for January for non-friendly countries.<p></p> </div> <div><span style="font-weight: bold;">Dec 22-24 </span>OPEC Gulf Six decides to raise the posted price of marker crude from $5.12 to $11.65 per barrel effective January 1, 1974. <p></p> </div> <div><span style="font-weight: bold;">Dec 25 </span>Arab oil ministers cancel January 5 percent production cut. Saudi Arabian oil minister promises 10 percent OPEC production rise.<p></p> </div> <div><a href="#backtotop0779"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1974 </span><br><div><span style="font-weight: bold;">Jan 7-9 </span>OPEC<a name="a1974"></a> decides to freeze posted prices until April 1.<p></p> </div> <div><span style="font-weight: bold;">J</span><span style="font-weight: bold;">an 29</span> Kuwait announces 60 percent government participation in BP-Gulf concession; Qatar follows on February 20.<p></p> </div> <div><span style="font-weight: bold;">Feb 11 </span>Washington Energy Conference opens. Attended by 13 industrial and oil producing nations. Called by U.S. to resolve the international energy problems through economic cooperation among nations. Henry Kissinger unveils Nixon Administration's seven-point "Project Independence" plan to make the U.S. energy independent. Libya nationalizes three U.S. oil companies that had not agreed to 51 percent nationalization in September.<p></p> </div> <div><span style="font-weight: bold;">Feb 12-14 </span>Heads of state of Algeria, Egypt, Syria, and Saudi Arabia discuss oil strategy in view of the progress in Arab-Israeli disengagement. <p></p> </div> <div><span style="font-weight: bold;">Mar 18 </span>Arab oil ministers announce the end of the embargo against the United States, all except Libya.<p></p> </div> <div><span style="font-weight: bold;">May 18 </span>Nigeria announces 55 percent government participation in all concessions.<p></p> </div> <div><span style="font-weight: bold;">Jun 1-3 </span>Arab oil ministers decide to end most restrictions on exports of oil to the United States but continue embargo against the Netherlands, Portugal, South Africa, and Rhodesia.<p></p> </div> <div><span style="font-weight: bold;">Jun 4 </span>Saudi Arabia announces that it will increase its participation in Aramco to 60 percent. Abu Dhabi and Kuwait follow in September. Increases are retroactive to January 1.<p></p> </div> <div><span style="font-weight: bold;">Jun 13 </span>IMF establishes its "oil facility," a special fund for loans to nations whose balance of payments have been severely affected by high oil prices.<p></p> </div> <div><span style="font-weight: bold;">Jul 10-11 </span>OAPEC lifts the embargo against the Netherlands.<p></p> </div> <div><span style="font-weight: bold;">Sep 13 </span>OPEC instructs its Secretary General to "carry out a study of supply and demand in relation to possible production controls."<p></p> </div> <div><span style="font-weight: bold;">Oct-Nov </span>Saudi Arabians raise tax rate to 85 percent and royalty rate to 20 percent.<p></p> </div> <div><span style="font-weight: bold;">Nov 15 </span>International Energy Agency formed in Paris within OECD framework. Saudi Arabia, Qatar, and United Arab Emirates announce a slight reduction in posted prices and tax rates.<p></p> </div> <div><span style="font-weight: bold;">Dec </span>U.S. Crude Oil Entitlements Program enacted, retroactive to November 1974.<p></p> </div> <div><span style="font-weight: bold;">Dec 22 </span>Iraq announces plans to increase its production capacity to 3.5 MMB/D by 1975 and to 6 MMB/D by 1981. <p></p> </div> <div><a href="#backtotop0779"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1975</span><br><div><span style="font-weight: bold;">Jan 1 </span>U.S.<a name="a1975"></a> Federal oil depletion allowance eliminated for large producers.<p></p> </div> <div><span style="font-weight: bold;">Jan 13 </span>Business Week publishes Kissinger interview hinting at military action against oil countries in case of "actual strangulation." <p></p> </div> <div><span style="font-weight: bold;">Apr 7-15 </span>Preliminary meeting at Paris on world economic crisis between oil-exporting (Algeria, Saudi Arabia, Iran, Venezuela), oil-importing (European countries, U.S., Japan), and non-oil Third World countries (India, Brazil, Zaire). Talks collapse after nations fail to decide whether agenda should focus on oil/energy issues or have a broader economic scope.<p></p> </div> <div><span style="font-weight: bold;">Apr 9 </span>Twenty-four OECD members sign an agreement to establish a $25 billion lending facility to provide assistance to industrial nations hurt by high oil prices.<p></p> </div> <div><span style="font-weight: bold;">Jun 13 </span>World Bank establishes its "Third Window," a fund to make loans to countries too rich to qualify for "soft" no-interest loans, but too distressed to afford loans at the prevailing normal lending rates. Action represents significant cooperation between oil-exporting and industrial nations.<p></p> </div> <div><span style="font-weight: bold;">Sep 24 </span>OPEC announces a 15 percent increase in government per barrel revenues as of October 1.<p></p> </div> <div><span style="font-weight: bold;">Oct 28 </span>Venezuela and foreign oil companies agree on nationalization as of January 1, 1976.<p></p> </div> <div><span style="font-weight: bold;">Dec 1 </span>Kuwait and Gulf and BP agree on terms of nationalization. <p></p> </div> <div><span style="font-weight: bold;">Dec 9 </span>Iraq completes nationalization by taking over the BP, CFP, and Shell shares of the Basrah Petroleum Company.<p></p> </div> <div><span style="font-weight: bold;">Dec 22 </span>President Ford signs the Energy Policy and Conservation Act (EPCA) effective February 1976. Authorizes the establishment of the Strategic Petroleum Reserve (SPR), participation in International Energy Program, and oil price regulation. <p></p> </div> <div><a href="#backtotop0779"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1976</span><br><div>Official price<a name="a1976"></a> of Saudi Light remains at $12.37 per barrel throughout 1976.<p></p> </div> <div><span style="font-weight: bold;">Feb </span>EPCA 3-tier price regulation begins. Small changes in Entitlements Program.<p></p> </div> <div><span style="font-weight: bold;">April - May </span>Lebanese civil war causes drop in Iraq exports through trans-Lebanon pipelines to Mediterranean.<p></p> </div> <div><span style="font-weight: bold;">May </span>OPEC issues press release vowing to "take appropriate measures" to protect OPEC interests in light of protectionist actions by certain countries.<p></p> </div> <div><span style="font-weight: bold;">Sep 1 </span>U.S. stripper well oil prices decontrolled.<p></p> </div> <div><span style="font-weight: bold;">Dec 14 </span>640 foot Argo Merchant runs aground on the Nantucket Shoals, spilling 7.6 million gallons of No. 6 fuel oil.<p></p> </div> <div><span style="font-weight: bold;">Dec </span>Moderates and OPEC "hawks" disagree on how fast price should rise. Saudi Arabia and United Arab Emirates increase prices by 5 percent, others by 10 percent. <p></p> </div> <div><a href="#backtotop0779"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1977</span><br><div><span style="font-weight: bold;">Jan </span>OPEC goes<a name="a1977"></a> to two-tier pricing (Saudi Arabia and United Arab Emirates use $12.09 per barrel and other OPEC countries use $12.70per barrel).<p></p> </div> <div><span style="font-weight: bold;">May </span>Fifty percent of Saudi Arabia's 10 MMB/D production is halted briefly due to fire damage to separation facility in Abqaiq field. Prices increase slightly.<p></p> </div> <div><span style="font-weight: bold;">Jul </span>OPEC prices reunified at $12.70 per barrel as Saudi Arabia and UAE fall into line, then official price rises to $13.66 per barrel. <p></p> </div> <div><span style="font-weight: bold;">Oct 23 </span>Dry dock complex opens at Bahrain; only facility between Portugal and Singapore capable of servicing VLCCs. <p></p> </div> <div><a href="#backtotop0779"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1978</span><br><div><span style="font-weight: bold;">Jan </span>Student<a name="a1978"></a> protests against government of Reza Pahlavi, Shah of Iran, begin, touching off a wave of political unrest and violent clashes between police and demonstrators. Throughout the year increasing anti-Shah activities are led by Muslim fundamentalists seeking to establish a Muslim state. <p></p> </div> <div><span style="font-weight: bold;">Mar </span>Amoco Cadiz tanker runs aground off the coast of France, spilling 1.6 million barrels of crude oil. (Largest crude spill to date.) <p></p> </div> <div><span style="font-weight: bold;">June </span>Iran and Saudi Arabia block efforts of OPEC price hawks to fix the price of OPEC oil in a currency more stable than the U.S. dollar. Say world economy cannot support associated price increases. Are accused by hawks of being U.S. agents.<p></p> </div> <div><span style="font-weight: bold;">Sept </span>Shah puts Iran under military rule. Muslim leader Noori arrested in crackdown of opposition groups.<p></p> </div> <div><span style="font-weight: bold;">Oct </span>Iranian strikes; departure of foreign technicians.<p></p> </div> <div><span style="font-weight: bold;">Oct </span>Pipeline fire drops Iraqi production 300,000 to 600,000 barrels per day.<p></p> </div> <div><span style="font-weight: bold;">Nov </span>Iranian oil production starts dropping.<p></p> </div> <div><span style="font-weight: bold;">Dec </span>Iranian production hits 1.5 MMB/D in mid-December; 500,000 on December 27, a 27-year low. OPEC production rises 1.6 MMBD over two months due to increased Saudi production.<p></p> </div> <div><span style="font-weight: bold;">Dec 17 </span>OPEC decides on a 14.5 percent price increase for 1979, to be implemented quarterly.<p></p> </div> <div><a href="#backtotop0779"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1979</span><br><div><span style="font-weight: bold;">Jan </span>First emergency<a name="a1979"></a> Crude Oil Buy-Sell Program allocations.<p></p> </div> <div><span style="font-weight: bold;">Jan 16 </span>Shah leaves Iran on vacation, never to return. Bakhtiar government established by the Shah to preside until unrest subsides.<p></p> </div> <div><span style="font-weight: bold;">Jan 20 </span>Saudi Arabia announces drastic cut in first-quarter production. 9.5 MMBD ceiling imposed. Although actual cuts never reach announced levels, spot prices of Middle East light crudes rise 36 percent. <p></p> </div> <div><span style="font-weight: bold;">Jan 20 </span>One million Iranians march in Teheran in a show of support for the exiled Ayatollah Komeini, fundamental Muslim leader.<p></p> </div> <div><span style="font-weight: bold;">Feb 12 </span>Bakhtiar resigns as prime minister of Iran after losing support of the military.<p></p> </div> <div><span style="font-weight: bold;">Mar 5 </span>Iran resumes petroleum exports.<p></p> </div> <div><span style="font-weight: bold;">Spring </span>Gasoline shortage/world oil glut.<p></p> </div> <div><span style="font-weight: bold;">Mar 26 </span>OPEC makes full 14.5 percent price increase for 1979 effective on April 1. Marker crude raised to $14.56 per barrel.<p></p> </div> <div><span style="font-weight: bold;">May </span>DOE announces $5 per barrel entitlement to importers of heating oil. Saudi Arabia announces intention to increase direct sales and to sell less through Aramco. Both announcements send prices higher.<p></p> </div> <div><span style="font-weight: bold;">Jun 1 </span>Phased oil price decontrol begins. Involves gradual 28 month increase of "old" oil price ceilings, and slower rate of increase of "new" oil price ceilings.<p></p> </div> <div><span style="font-weight: bold;">Jun 26-28 </span>OPEC raises prices average of 15 percent, effective July 1. <p></p> </div> <div><span style="font-weight: bold;">Oct </span>Buy-Sell Program sales average more than 400,000 B/D from October 1979 through March 1980 - highest level since February 1976, due to emergency allocations.<p></p> </div> <div><span style="font-weight: bold;">Oct </span>Canada eliminates light crude oil exports to U.S. refiners, except for those exports required by operational constraints of pipelines.<p></p> </div> <div><span style="font-weight: bold;">Nov 4 </span>Iran takes western hostages.<p></p> </div> <div><span style="font-weight: bold;">Nov 12 </span>Carter orders cessation of Iranian imports to U.S.<p></p> </div> <div><span style="font-weight: bold;">Nov 15 </span>Iran cancels all contracts with U.S. oil companies.<p></p> </div> <div><span style="font-weight: bold;">Dec 13 </span>Saudi Arabia raises marker crude price to $24 per barrel. <p></p> </div> <div><a href="#backtotop0779"><span style="">Back to top</span></a><p></p> </div> <p></p> </td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">1980s</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"><span class="cssSubheading1">Jum<a name="backtotop0889"></a>p to a Specific Year</span><br><div> <table> <tr> <td> <p style="font-size:0.75em;"><a href="#a1980"><span style="">1980</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1981"><span style="">1981</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1982"><span style="">1982</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1983"><span style="">1983</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1984"><span style="">1984</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1985"><span style="">1985</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1986"><span style="">1986</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1987"><span style="">1987</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1988"><span style="">1988</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1989"><span style="">1989</span></a></p> </td> </tr> </table> <p></p> </div><span class="cssSubheading1"></span><br><span class="cssSubheading1">1980</span><br><div><span style="font-weight: bold;">Mar 1 </span>Windfall <a name="a1980"></a>Profits Tax enacted.<p></p> </div> <div><span style="font-weight: bold;">May S</span>audi Light raised to $28.00 per barrel, retroactive to April 1.<p></p> </div> <div><span style="font-weight: bold;">Apr-Sep </span>Buy-Sell Program allocations drop to average of 120,000 B/D for period April to September 1980. <p></p> </div> <div><span style="font-weight: bold;">Sep 17 </span>Iraq breaks 1975 treaty with Iran and proclaims sovereignty over Shatt al-Arab waterway.<p></p> </div> <div><span style="font-weight: bold;">Sep 23 </span>Iraq invades Iran. Mutual bombing of installations.<p></p> </div> <div><span style="font-weight: bold;">Nov 10 </span>Iraq captures southern port of Khorramshahr.<p></p> </div> <div><span style="font-weight: bold;">Nov 20-24 </span>U.N. gulf war mediator Olaf Palme makes first unsuccessful peace shuttle between Tehran and Baghdad.<p></p> </div> <div><span style="font-weight: bold;">Dec </span>Collapse of OPEC's pricing structure. Saudis use $32 per barrel marker, others use $36 per barrel benchmark.<p></p> </div> <div><a href="#backtotop0889"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1981</span><br><div>Saudis <a name="a1981"></a>flood market with inexpensive oil in 1981, forcing unprecedented price cuts by OPEC members. In October, all 13 OPEC members align on a compromise $32 per barrel benchmark. Later, benchmark price is maintained, but differentials are adjusted. <p></p> </div> <div><span style="font-weight: bold;">Jan </span>Iraq repels first major Iranian offensive. <p></p> </div> <div><span style="font-weight: bold;">Jan 28 </span>President Reagan lifts remaining domestic petroleum price and allocation controls originally scheduled to expire in September 1981.<p></p> </div> <div><span style="font-weight: bold;">Apr </span>After meetings in Baghdad and Teheran, attempts by nine Islamic Conference leaders to mediate peace between Iraq and Iran fail. <p></p> </div> <div><span style="font-weight: bold;">Aug </span>Windfall profits tax reduced.<p></p> </div> <div><span style="font-weight: bold;">Sep 27-28 </span>Iran defends its besieged port of Abadan, driving back Iraqi forces.<p></p> </div> <div><span style="font-weight: bold;">Oct </span>OPEC reaches an agreement to unify crude price at $32 per barrel through 1982 and sets an ultimate price ceiling of $38 per barrel.<p></p> </div> <div><span style="font-weight: bold;">Nov 29 </span>Major Iranian offensive mounted on central front. <p></p> </div> <div><a href="#backtotop0889"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1982</span><br><div>Indications of a world o<a name="a1982"></a>il glut lead to a rapid decline in world oil prices early in 1982. OPEC appears to lose control over world oil prices. <p></p> </div> <div><span style="font-weight: bold;">Mar </span>Damascus closes Iraq's 400,000 bbl/d trans-Syrian oil export pipeline to show support for Iran.<p></p> </div> <div><span style="font-weight: bold;">Mar 11 </span>U.S. boycotts Libyan crude.<p></p> </div> <div><span style="font-weight: bold;">May 24 </span>Iran recaptures Khorramshahr. <p></p> </div> <div><span style="font-weight: bold;">Jun </span>Iran demands $150 billion in war reparations; pledges war until Iraq's Hussein stands trial.<p></p> </div> <div><span style="font-weight: bold;">Jun 10 </span>Iraq declares unilateral cease-fire.<p></p> </div> <div><span style="font-weight: bold;">Jul 13 </span>Iran launches first attack into Iraq. <p></p> </div> <div><a href="#backtotop0889"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1983</span><br><div>Oil glut<a name="a1983"></a> takes hold. Demand falls as a result of conservation, use of other fuels and recession. OPEC agrees to limit overall output to 17.5 MMB/D. OPEC agrees to individual output quotas and cuts prices by $5 to $29 per barrel. <p></p> </div> <div><span style="font-weight: bold;">Apr </span>Iraq increases missile attacks on Iran.<p></p> </div> <div><span style="font-weight: bold;">Jul 20-30 </span>Iran moves into northern Iraq. Casualties top 13,800 in ten days.<p></p> </div> <div><span style="font-weight: bold;">Jul 26 </span>U.S. threatens action to preserve navigation in Persian Gulf. <p></p> </div> <div><span style="font-weight: bold;">Jul-Aug </span>Heavy fighting and casualties in Iran-Iraq war.<p></p> </div> <div><span style="font-weight: bold;">Oct </span>Iran attacks northern Iraq, threatening Kirkuk pipeline.<p></p> </div> <div><a href="#backtotop0889"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1984</span><br><div><span style="font-weight: bold;">Feb-Mar </span><a name="a1984"></a>Iran captures Najnoon Islands.<p></p> </div> <div><span style="font-weight: bold;">Mar 27 </span>Beginning of "tanker war." Over the next nine months, 44 ships, including Iranian, Iraqi, Saudi Arabian and Kuwaiti tankers, are attacked by Iraqi or Iranian warplanes or damaged by mines.<p></p> </div> <div><span style="font-weight: bold;">Mar-Jun </span>Iran mobilizes 500,000 troops to southern front. No offensive materializes.<p></p> </div> <div><span style="font-weight: bold;">May 26 </span>President Reagan rules out U.S. military intervention.<p></p> </div> <div><span style="font-weight: bold;">Jun </span>Civilian target truce in Iran-Iraq war.<p></p> </div> <div><span style="font-weight: bold;">Oct </span>Norway and Britain cut prices in response to falling spot market. Nigeria follows, renewing pressure on OPEC price cuts. <p></p> </div> <div><span style="font-weight: bold;">Oct 17 </span>OPEC cuts production to 16 MMB/D, but agreement is negated by cheating and price-discounting.<p></p> </div> <div><a href="#backtotop0889"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1985</span><br><div><span style="font-weight: bold;">Jan </span>Nine<a name="a1985"></a> OPEC members adjust prices to cut gap between light and heavy crudes from $4 to $2.40 per barrel. Saudi light price cut one dollar to $28 per barrel.<p></p> </div> <div><span style="font-weight: bold;">Mar 11-19 </span>Iranian offensive; heavy casualties.<p></p> </div> <div><span style="font-weight: bold;">May-Jun </span>"Battle of the cities" - heavy bombing from both Iran and Iraq.<p></p> </div> <div><span style="font-weight: bold;">Jun </span>OPEC output falls to 20-year low of 13.7 MMB/D.<p></p> </div> <div><span style="font-weight: bold;">Jun </span>Iran begins hit-and-run raids on Iraq. <p></p> </div> <div><span style="font-weight: bold;">Jul </span>OPEC loses customers to cheaper North Sea oil. More OPEC price cuts.<p></p> </div> <div><span style="font-weight: bold;">Aug </span>Saudi Arabia links prices to spot market. Output rises from 2 MMB/D in August to 5 MMB/D in early 1986.<p></p> </div> <div><span style="font-weight: bold;">Aug 15 </span>First Iraqi air raid on Iran's main oil export terminal, Kharg Island.<p></p> </div> <div><span style="font-weight: bold;">Nov 6 </span>Exploratory well in Ranger, Texas, blows out, spilling 150,000 BBLS of crude oil.<p></p> </div> <div><span style="font-weight: bold;">Dec </span>OPEC output hits 18 MMB/D boosting a glut and triggering a price war.<p></p> </div> <div><a href="#backtotop0889"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1986</span><br><div>Average<a name="a1986"></a> world oil prices fall by over 50 percent in 1986. There is wide use of netback pricing in 1986. <p></p> </div> <div><span style="font-weight: bold;">Feb 3-4 </span>OPEC fails to agree upon a production accord after a two-day meeting in Vienna.<p></p> </div> <div><span style="font-weight: bold;">Feb </span>Iran captures southern Faw peninsula, starts northern offensive. <p></p> </div> <div><span style="font-weight: bold;">May 7 </span>Iraq bombs Tehran refinery.<p></p> </div> <div><span style="font-weight: bold;">Jun </span>OPEC production-cut talks fail, ending in a tentative majority pact on an average 1986 ceiling of 17.6 MMB/D.<p></p> </div> <div><span style="font-weight: bold;">Jun 8 </span>Iraqi jets attack Assadabad satellite station.<p></p> </div> <div><span style="font-weight: bold;">Jul </span>Brent price dips under $9 per barrel. OPEC production rises to 20 MMB/D.<p></p> </div> <div><span style="font-weight: bold;">Jul 27 </span>Iraqi jets attack central Iranian city of Arak. Iran threatens missile attack of gulf states supporting Iraq.<p></p> </div> <div><span style="font-weight: bold;">Aug 2 </span>Hussein offers peace in open letter to Iran.<p></p> </div> <div><span style="font-weight: bold;">Aug 4 </span>Reports of probable OPEC agreement on output quotas sends oil prices higher.<p></p> </div> <div><span style="font-weight: bold;">Aug 12 </span>Iran fires missile at refinery near Baghdad. Iraq raids Iranian terminal at Sirri Island severely disrupting Iranian exports. <p></p> </div> <div><span style="font-weight: bold;">Dec 19 </span>OPEC reaches an accord that would cut production by seven percent for the first six months of 1987 (from 17 MMB/D to 16 MMB/D) and would raise prices immediately toward a target world oil price of $18 per barrel.<p></p> </div> <div><a href="#backtotop0889"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1987</span><br><div><span style="font-weight: bold;">Jan </span>OPEC price<a name="a1987"></a> accord begins to deteriorate.<p></p> </div> <div><span style="font-weight: bold;">Feb </span>OPEC majors stick to fixed prices.<p></p> </div> <div><span style="font-weight: bold;">Jun-Aug</span><span style="font-weight: bold;"></span>Gulf war escalates.<p></p> </div> <div><span style="font-weight: bold;">Dec </span>OPEC meeting failure. <p></p> </div><span class="cssSubheading1">1988</span><br><div>Wide<a name="a1988"></a> use of crude formula pricing in 1988. <p></p> </div> <div><span style="font-weight: bold;">Feb </span>OPEC price meeting set.<p></p> </div> <div><span style="font-weight: bold;">Mar </span>OPEC/Non-OPEC meeting failure.<p></p> </div> <div><span style="font-weight: bold;">Jul </span>Iran accepts cease fire.<p></p> </div> <div><span style="font-weight: bold;">Oct 14 </span>Crude oil prices jump in anticipation of possible production accord at Gulf Cooperation Council meeting set for October 16. <p></p> </div> <div><span style="font-weight: bold;">Nov 28 </span>OPEC reaches production accord. Six-month agreement to set production at 18.5 MMB/D. Although the recent OPEC quota had been 19.0 MMB/D, actual OPEC production had been closer to 21.0 MMB/D. <p></p> </div> <div><span style="font-weight: bold;">Dec </span>Fulmar/Brent outages.<p></p> </div> <div><a href="#backtotop0889"><span style="">Back to top</span></a><p></p> </div><span class="cssSubheading1">1989</span><br><div><span style="font-weight: bold;">Mar </span>Exxon<a name="a1989"></a> tanker Valdez runs aground, spilling 11 million gallons of crude oil in the waters of Price William Sound. Oil prices react upward to news of the spill and to potential shortages on the west coast cased by refinery fires there.<p></p> </div> <div><span style="font-weight: bold;">June </span>OPEC raises their production ceiling to 19.5 MMB/D. <p></p> </div> <div><a href="#backtotop0889"><span style="">Back to top</span></a><p></p> </div> <p></p> </td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">1990s</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"><span class="cssSubheading1">Jump to a Specific<a name="backtotop0999"></a> Year</span><br><div> <table> <tr> <td> <p style="font-size:0.75em;"><a href="#a1990"><span style="">1990</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1991"><span style="">1991</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1992"><span style="">1992</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1993"><span style="">1993</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1994"><span style="">1994</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1995"><span style="">1995</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1996"><span style="">1996</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1997"><span style="">1997</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1998"><span style="">1998</span></a></p> </td> <td> <p style="font-size:0.75em;"><a href="#a1999"><span style="">1999</span></a></p> </td> </tr> </table> <p></p> </div><span class="cssSubheading1"></span><br><span class="cssSubheading1">1990</span><br><div><span style="font-weight: bold;">Aug </span>Iraq <a name="a1990"></a>invades Kuwait. Crude and product prices soar upward; exchange markets react wildly to any middle east news events; cash markets dominate prices after trading hours; jet fuel prices rise to record spreads over other products due to increase in defense demand. In late August, OPEC president fails to revive floundering attempts to organize a formal OPEC meeting to discuss crisis/production strategies. Informal meetings held in Vienna result in record price falls. Conflicting reports of promises to increase OPEC output to compensate for embargo of Iraq and Kuwait oil further compound market uncertainties.<p></p> </div> <div><span style="font-weight: bold;">Aug 2 </span>Iraq invades Kuwait.<p></p> </div> <div>Bush orders troops to Saudi Arabia.<p></p> </div> <div><span style="font-weight: bold;">Aug 27 </span>Market prices plunge as OPEC nears informal agreement to increase output to cover 4 MMB/D shortfall due to invasion. Cash market trading experiences abrupt decline.<p></p> </div> <div><span style="font-weight: bold;">Sep 6 </span>U.S. citizen is shot in Kuwait. API reports 4.4 MMB weekly draw in domestic crude stocks. Oil markets surge on aggressive U.S. statements toward Iraq.<p></p> </div> <div><span style="font-weight: bold;">Sep 21 </span>Reports that U.S refinery problems will lead to a 200,000 B/D loss in capacity and aggressive remarks by Saddam Hussein send crude prices to new highs.<p></p> </div> <div><span style="font-weight: bold;">Sep 24 </span>Iraq invades the French and Dutch missions in Kuwait; French President Mitterand called the action a violation of international law; a U.S. warship boards an Iraqi-flagged tanker bound for the port of Basrah.<p></p> </div> <div><span style="font-weight: bold;">Sep 18 </span>Crude prices outpace increases in product prices and there is talk of cutting refinery runs.<p></p> </div> <div><span style="font-weight: bold;">Sep 20 </span>Poor refining margins.<p></p> </div> <div><span style="font-weight: bold;">Sep 24 </span>Saddam Hussein states his willingness to strike first and his intention to damage oil fields in the region if Iraq does strike.<p></p> </div> <div><span style="font-weight: bold;">Oct 1 </span>Saddam Hussein says he may be willing to negotiate the occupation of Kuwait and would consider foreign participation in negotiations. <p></p> </div> <div><span style="font-weight: bold;">Oct 3 </span>API reports a 9 MMB weekly U.S. crude inventory draw.<p></p> </div> <div><span style="font-weight: bold;">Oct. 9 </span>Fear of war and long-term supply disruptions as Hussein threatens Israel.<p></p> </div> <div><span style="font-weight: bold;">Oct 10 </span>API reports crude inventories dropped by more than 4 MMB in the last week.<p></p> </div> <div><span style="font-weight: bold;">Oct 11 </span>Libya's Qadhafi says Israel must be eliminated, and U.K. Foreign Secretary Hurd says force would be used if Iraq doesn't withdrawal from Kuwait.<p></p> </div> <div><span style="font-weight: bold;">Nov 5 </span>Reports of increasing Saudi production and lower world demand. <p></p> </div> <div><span style="font-weight: bold;">Nov 6 </span>Iran's oil-producing region suffers a serious earthquake. <p></p> </div> <div><span style="font-weight: bold;">Nov 7 </span>API reports 5 MMB U.S. crude inventory weekly increase.<p></p> </div> <div><span style="font-weight: bold;">Nov 8 </span>Unconfirmed rumors that Bush would announce an airlift of supplies to U.S. embassy in Kuwait, which could ultimately trigger a military clash.<p></p> </div> <div><span style="font-weight: bold;">Nov 13 </span>Saudis ask U.S. for rights to bid on SPR crude.<p></p> </div> <div><span style="font-weight: bold;">Nov 19 </span>Report that Iraq will bolster its forces in Kuwait.<p></p> </div> <div><span style="font-weight: bold;">Nov 20 </span>API reports crude inventory drop in U.S. of more than 4 MMB; Saddam Hussein announces plans to release German hostages; Soviet Union shows reluctance to endorse the use of force against Iraq. <p></p> </div> <div><span style="font-weight: bold;">Nov 21 </span>French President Mitterand voices support of a proposed U.N. resolution that would authorize the use of force in the Persian Gulf.<p></p> </div> <div><span style="font-weight: bold;">Nov 26 </span>U.S. proposes a