As the world capitalist economy moves into recession the outlook for Britain seems bleak: rising unemployment, rocketing inflation, and plummeting growth are the predictions being made by experts from all quarters.
One factor that has been highlighted as a cause of all these problems is the so-called energy crisis. The picture of evil, moneygrubbing 'oil sheiks" sowing the seeds of western destruction has become a popular one. a cumber of monopolies involved in a fight with the Japanese Governup their demands for higher prices they have used all kinds of manoeurres-Including the threat to cut Japanese oil supplies.
Not have the British-based firms been shy about cashing in on rising world oil prices. Shell's profits for the third quarter of last year were three times what they had been in the previous three-month period, and profits in the tirst mine months of last year were almost 50% above what had been made throughout all of 1972: British Oil Crisis:
monopolles could only ignore the boycott by cutting back on ment over higher fuel prices. To back, supplies to otber customers. in a position to actually monitor the destination of oil produced in their countries. But the on companies could get around this as well. They could strictly observe the rule that no hut still equalise the existing supplies hy re-routing increased supplies of non-Arab oil to those customers who were subject to the Arab cuts and away from those who were not ced -and for some time afterwardsthe British Government was not very in British refineries during November should not have been allected, because the necessary oil supplies should all have left the Persian Gulf ports befote the cuts came into effect (this was confirmed by Tory Industry Minister Peter Walker, who repeatedly referred to 30 days supply of oil 'at sea"). Moreover, were enough to meet the country's Walker).
still at sea.
Only Libya and Saudi Arabia were Arab oil was to go to certain countries, LUNLO ECHS When the cuts were first announDecember.
Panicked by the oil companies manoeuvre, the Government obligingly imposed a 105 cutback in oil consumption on 20 November, and gave the companies their list of "priority customers. They went even further and set up an appeals procedure wilch required the supplier's support for an application for exemption from the cutsan enviable position for any firm to find itself in with regard to its supply (although they had been reporled to be at the 6.5 dayr level on 24 November; a fall of almost 20 days stocks had thus taken place in 10 days!) A sunilar warning about fuel oil was made on 15