Taking the US market as an example, despite Venezuela's geographical advantage, the oil price in Venezuela is $2 per barrel, and the Middle East is only 1. $7, the price is still higher than that of Middle Eastern countries, due to the impact of cheap oil in the Middle East, Venezuela's oil industry is not competitive, in addition, Venezuela and Britain and the United States relations have been very general, Venezuela hates the United States' policy towards Latin America, and Western countries are estranged, and now Venezuelan government changes frequently, resulting in Venezuelan oil production reductions, resulting in a decrease in oil supplies to Europe and the United States.
Canada faces the same problem, with the Alberta field being the largest in Canada. In the 70s, Canada's Alberta oil field delivered 570,000 barrels of crude oil per day to the international crude oil market, and in the 60s it was only 330,000 barrels, a large part of which was exported to the United States, but due to US price restrictions, when the United States and Canada were negotiating, Canada proposed to allow 400,000 barrels per day to be exported to the United States, but the United States suggested that Canada export 360,000 barrels to the United States, and later Canada actually exported 440,000 barrels per day to the United States. But Canada's daily export of oil did not bring a huge profit return, due to the United States domestic cancellation of oil import restrictions, a large amount of cheap oil into the US market, the United States is in the consideration of protecting domestic oil companies, to a certain extent price restrictions, but the United States domestic oil prices are still falling, Canada's oil export costs and Venezuela, are relatively high, mainly Canada's natural conditions are more harsh, so if and Middle East oil in the international market to compete, There must be moderate protection from the state, the U.S. oil price protection system did not benefit Canadian oil companies, Canada's share of oil exports in the U.S. and international markets continued to shrink to the point that it finally lost competitiveness, for which the Canadian Abel field was closed in the 70s.
The United States is the largest oil producer and exporter in the Americas after the end of World War II, the United States in the post-war nearly 50 years, oil production nearly doubled, by 1970 the United States oil production peaked at 11 million barrels per day of oil production, but then American oil production continued to decline, while American oil consumption is increasing, the United States in the early post-war period average 5.8 million barrels per month, but by the 70s, the United States consumed 16.4 million barrels per day. And the cost of oil exploitation in the United States is also higher than that of Middle Eastern oil producers, the United States oil extraction per barrel is about $1.3, while the cost of Middle East oil extraction is only 11 cents, so the United States faces the dual pressure of domestic oil shortage and high oil prices, when the oil import restrictions set from the Eisenhower era are outdated, mainly to protect the interests of domestic oil producers, and US oil production can fully meet the market.
And in the 70s, due to the sharp growth of US consumption and the decline in production, the US domestic demand to open the market, the call for the removal of oil import restrictions is increasing, according to the official statistics of the United States, due to the implementation of protection, the oil price in the United States is 65% higher than the world oil price, according to the budget if import restrictions are lifted, American oil companies will lose $500 million a year, for oil prices will fall by 10%, and now the cost of importing oil from the Middle East is $1.45 per barrel. Coupled with tariffs on the import of Middle East oil oil about $3, if you want to ensure competitiveness, the United States oil price must be lowered to $2.50 per barrel, a large amount of Middle East oil influx to the United States domestic oil producers brought great pressure, although the United States imposed a certain import amount restrictions, but low oil prices and high consumption of oil caused by the United States domestic oil surplus production capacity is rapidly disappearing, low oil prices have led American oil companies to invest in the profitable Middle East, The high consumption of oil caused the United States to have a short supply of domestic oil, and began to import a large amount of oil. The United States, Canada, and Venezuela are the main oil exporters in the Western Hemisphere, and in the 70s, under the impact of low-cost oil in the Middle East, the three countries lost their ability to compete internationally because of the high cost of oil, and the oil exports of the three countries continued to shrink. U.S. crude oil production accounts for only 5 percent of the international market, indicating the disappearance of the Western Hemisphere's oil surplus.
In 1971, when the British and American leaders paid a state visit, the oil issue was discussed, and the two countries agreed that the world's demand for crude oil soared after the war, and the global demand for oil reached 38 million barrels in 1968, due to the increase in demand, global exploration activities are also soaring, and the number of countries exporting oil is also increasing, the original Middle East has 4 countries exporting oil, now it has increased to 8, the increase in Middle East oil exporters has led to the international oil supply market being dominated by Middle East countries. Middle Eastern oil-producing countries already account for two-thirds of international oil transactions, and Arab oil-producing countries now have a growing political influence in the Middle East.
