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OPEC: Twenty-Five Years of Prices and Politics, (Cambridge Energy series.) by Ian Skeet
Review by: Michael B. Bishku
Middle East Studies Association Bulletin, Vol. 23, No. 2 (December 1989), pp. 247-249
Published by: Middle East Studies Association of North America (MESA)
Stable URL: http://www.jstor.org/stable/23060760 .
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thinking has been systematically shaped by the Zionist belief system who
that the influence Gush Emunim exerts by far exceeds its size. Adopting a
baum discusses yet another Israeli extremist party, Tehiya, whose goal is to
and King Abdullah of Jordan to consolidate the new status quo in the
region, tells us that Israel in 1948 was attacked by Arab armies whose
the Arab Legion in 1948 was none other than the British Glubb Pasha.
On the whole, the book offers useful insights regarding the internal
the question of Israeli security, the objective reader should be alert to the
unlike other writers, Skeet makes no predictions on the fate of that orga
nization, which he describes as being in a "state of suspended animation"
(p. 222). His justification for writing this study is that as OPEC has reached
an "interval" in its history it seems an appropriate time for an assessment
of that organization's nature and its role in petropolitics and oil pricing
from its inception in 1960 to 1985, when OPEC appeared to abandon its
institutional objectives.
In examining the history of OPEC, Skeet uses a rather conventional
gaining full control over its oil pricing; and the years since 1973, when
OPEC administered prices, first from a position of strength and later from
a position of weakness. In the process of reviewing OPEC's development,
Skeet expounds upon its successes and failures in an objective fashion. As a
retired employee of Shell International, Skeet was able to set up a number
of "off the record" conversations with many individuals knowledgeable
about OPEC, including some of the organization's secretaries-general. In
addition, Skeet acknowledges the value of the Middle East Economic Survey
and the Petroleum Intelligence Weekly, oil trade journals that provided
information "without which the book could not have been written" (p. ix).
Despite having membership throughout the developing world, the con
trolling power in OPEC in its early years was Iran, which was later su
perseded by Saudi Arabia. OPEC got its inspiration from two people,
Perez Alfonzo of Venezuela and Abdullah Tariki of Saudi Arabia, who
were deeply concerned over the oil companies' great control over develop
ment and oil pricing; but it was Fuad Rouhani of Iran who guided OPEC,
as its secretary-general, in its early years, when the organization had only
minimal success, since the balance of power remained with the oil compa
nies. An excellent source for that time period remains Rouhani's A History
of O.P.E.C. (Praeger, 1971).
Certain political events such as the 1967 Arab-Israeli War (resulting
in the closing of the Suez Canal), Britain's decision to pull out of the
Persian Gulf, and the Libyan revolution of 1969 brought changes which had
the effect of shifting the balance of power to the governments belonging
to OPEC. While OPEC had a great deal of power during the 1970s, it
really did not act like the cartel envisioned by Perez Alfonzo; members
were operating in their own national interests, as they continue to do
today. During 1981, OPEC price unification was finally achieved. The
following year, the organization agreed to a program of quotas, with a
Overall, this book has the right blend of detail and analysis, but Skeet's
government of Israel resented the new peacekeeping force and was reluc
tant to cooperate with it; and the PLO, along with other armed forces in
the area, had their own intentions. Members of the Security Council were