The Prize: The Epic Quest for Oil, Money, and Power

Aramco, originally known as the Arabian American Oil Company, is a significant entity in the history of the oil industry. Founded in the 1930s, it played a crucial role in developing Saudi Arabia’s oil resources. Yergin details how Aramco’s establishment and subsequent operations symbolized the deepening ties between the United States and Saudi Arabia, highlighting the geopolitical and economic impacts of this partnership.

The energy crises of the 1970s, particularly the 1973 oil embargo and the 1979 oil shock, are framed as pivotal events in Yergin’s analysis. These crises underscored the vulnerabilities of oil-dependent economies and led to significant changes in energy policies, conservation efforts, and the exploration of alternative energy sources. Yergin explains how these crises reshaped the global energy landscape and prompted long-term strategic planning in both consuming and producing nations.

Hubbert’s Peak refers to the theory proposed by geologist M. King Hubbert in 1956, which predicted that U.S. oil production would peak in the early 1970s and then decline. Yergin discusses how this concept, also known as “peak oil,” influenced the understanding of resource limitations and spurred debates on energy sustainability, impacting both policy and industry strategies.