1995 world oil market chronology
Encyclopedia
- January 14: MexicoMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
pledges profits from state-owned PemexPemexPetróleos Mexicanos or Pemex is a Mexican state-owned petroleum company. As of 2010, with a total asset worth of $415.75 billion, it is the second non-publicly listed largest company in the world by total market value, and Latin America's second largest enterprise by annual revenue as of 2009...
's $7-billion-per-year oil revenues in an effort to secure United States CongressUnited States CongressThe United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
approval of $40 billion worth of loan guarantees. Subsequently, U.S. President Bill ClintonBill ClintonWilliam Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
approved a $20-billion U.S. aid package for Mexico. - January 30: NorwayNorwayNorway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
's StatoilStatoilStatoil ASA is a Norwegian petroleum company established in 1972. It merged with Norsk Hydro in 2007 and was known as StatoilHydro until 2009, when the name was changed back to Statoil ASA. The brand Statoil was retained as a chain of fuel stations owned by StatoilHydro...
announces that a newly formed consortium of 11 oil companies will develop a plan to supply Norwegian natural gas to the EuropeEuropeEurope is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an continent. Three Norwegian companies signed a contract with Gaz de FranceGaz de FranceGaz de France was a French company which produced, transported and sold natural gas around the world, especially in France, its main market. The company was also particularly active in Belgium, the United Kingdom, Germany, and other European countries. Through its part-owned Belgian subsidiary SPE...
to bring 1.4 Tcuft of Norwegian gas to FranceFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
between 2001 and 2027. - February 28: The PentagonThe PentagonThe Pentagon is the headquarters of the United States Department of Defense, located in Arlington County, Virginia. As a symbol of the U.S. military, "the Pentagon" is often used metonymically to refer to the Department of Defense rather than the building itself.Designed by the American architect...
announces that it monitored IranIranIran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
ian installation of surface-to-air Hawk missiles in the Strait of HormuzStrait of HormuzThe Strait of Hormuz is a narrow, strategically important waterway between the Gulf of Oman in the southeast and the Persian Gulf. On the north coast is Iran and on the south coast is the United Arab Emirates and Musandam, an exclave of Oman....
. The Iranians also took possession of and fortified the nearby Abu MusaAbu MusaAbu Musa is a 12-km² island in the eastern Persian Gulf, part of a six-island archipelago near the entrance to the Strait of Hormuz. The island is administered by Iran as part of the Iranian province of Hormozgan, but is also claimed by the United Arab Emirates .Abu Musa's inhabitants call it...
and the Tunb Islands, which are claimed by both Iran and the United Arab EmiratesUnited Arab EmiratesThe United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
(UAE). - June 14: After OPECOPECOPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...
's bi-annual meeting in ViennaViennaVienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
, President Ida Bagus Sudjana] discloses the organization's intention to roll over its present crude oil production ceiling of 24.52 Moilbbl/d. The announcement is followed by a trip to Norway by Saudi ArabiaSaudi ArabiaThe Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
n Oil Minister Hisham M. Nazer. Upon arriving, the Saudi Minister asks Norwegian Minister of Industry and Energy Jens StoltenbergJens Stoltenbergis a Norwegian politician, leader of the Norwegian Labour Party and the current Prime Minister of Norway. Having assumed office on 17 October 2005, Stoltenberg previously served as Prime Minister from 2000 to 2001....
to restrain his country's oil production in the hopes of stabilizing world oil prices. - June 30: ExxonExxonExxon is a chain of gas stations as well as a brand of motor fuel and related products by ExxonMobil. From 1972 to 1999, Exxon was the corporate name of the company previously known as Standard Oil Company of New Jersey or Jersey Standard....
signs a $15.2-billion deal to develop oil and gas fields near RussiaRussiaRussia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
's Sakhalin Island. The Sakhalin I project will develop the offshore Shayvo, Odoptu, and Arkutun-Dagi fields that together are estimated to contain 2.5 Goilbbl of crude oil and 15 Tcuft of natural gas. Exxon has a 30 percent stake in the project. - July 6: VenezuelaVenezuelaVenezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
's Congress approves the country's first investment law allowing for foreign participation in oil exploration and production. The newly passed "model agreement" authorizes the state-owned oil company Petroleos de Venezuela S.A. (PDVSA) to offer 10 exploration blocks to foreign investors. If oil is discovered, the government will maintain a majority stake in any joint venture formed to develop the new fields. - July 27: Saudi Aramco awards the giant Shaybah oil field development project to U.S.-based Parsons CorporationParsons CorporationParsons Corporation is an engineering, construction, and technical and management services firm headquartered in Pasadena, California. Founded in 1944 by engineer Ralph M. Parsons, Parsons Corporation is currently one of the largest such companies in the United States, with revenues exceeding...
. The $2.5-billion project will develop the 7 Goilbbl field, including the construction of crude oil production facilities, gas-oil separation plants, and a 372 miles (598.7 km) pipeline. The Shaybah field is located on the SaudiSaudi ArabiaThe Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
-United Arab EmiratesUnited Arab EmiratesThe United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
border and is expected to produce 500 Moilbbl/d after it comes on line in 1999. - July 28: Norwegian Finance Minister Sigbjorn Johnsen says that NorwayNorwayNorway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
should not lower its crude oil production in an attempt to boost world oil prices. Norwegian Oil Minister Jens StoltenbergJens Stoltenbergis a Norwegian politician, leader of the Norwegian Labour Party and the current Prime Minister of Norway. Having assumed office on 17 October 2005, Stoltenberg previously served as Prime Minister from 2000 to 2001....
believes production cuts may be necessary if prices begin to fall. Minister Johnsen's remarks follow last month's visit by Saudi Arabian Oil Minister] Hisham M. Nazer, who asked Minister Stoltenberg to cut Norway's crude oil production. - August 2: Saudi Arabia's King Fahd issues a decree replacing all members of the Council of Ministers who do not have blood ties so the royal family. While most of the Council's top positions are unaffected by the reshuffling, Oil Minister Hisham Nazer is replaced with Ali bin Ibrahim al-Naimi.
- August 14: Iran's official news agency, IRNA, reports that Iran has been unable to sell 200 Moilbbl/d of crude oil since the imposition of a unilateral oil embargo by the U.S. Iran increasingly has sold its crude oil on spot markets as opposed to long-term contracts. Larger purchases by FranceFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, SpainSpainSpain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, ItalyItalyItaly , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, ChinaPeople's Republic of ChinaChina , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
, IndiaIndiaIndia , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, PakistanPakistanPakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
, and ThailandThailandThailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
have failed to offset decreased demand by GermanGermanyGermany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and JapanJapanJapan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
ese refiners. Before the U.S. embargo was announced in April 1995, U.S. companies were buying between 400,000 and 450 Moilbbl/d, down from roughly 600 Moilbbl/d in 1994. - August 28: KuwaitKuwaitThe State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
i Oil Minister Abdul Mohsen al-Medej announces that his country will increase its oil production capacity to as much as 3.5 Moilbbl/d by 2005. - September 13: The Kuwaiti Oil Ministry states its intention to seek a 200 Moilbbl/d increase to its current 2 Moilbbl/d crude oil production quotaProduction quotaA production quota is a goal for the production of a good. It is typically set by a government or an organization, and can be applied to an individual worker, firm, industry or country. Quotas can be set high to encourage production, or can be used to limit production to control the supply of goods...
at the November 1995 OPECOPECOPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...
meeting in ViennaViennaVienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
. The announcement comes amidst growing non-OPEC oil production and weak oil prices. - November 22: OPEC states that it will roll over its current oil production quota of 25.42 Moilbbl/d. The roll-over was widely anticipated because of slack world oil demand, rising non-OPEC production, and weak prices.
- November 29: President Clinton approves legislation lifting a 22-year-old ban on exports of oil from the Alaskan North Slope (ANS). The ban was imposed after the oil embargo by Arab oil producers in 1973. The lifting of the ban opens up about one-quarter of U.S. crude oil production for export. The ANS legislation also waives royalty payments on deep water oil and gas leases in the Gulf of MexicoGulf of MexicoThe Gulf of Mexico is a partially landlocked ocean basin largely surrounded by the North American continent and the island of Cuba. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States, on the southwest and south by Mexico, and on the southeast by Cuba. In...
. - December 12: Speaking in New YorkNew YorkNew York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
during a U.S. visit by AngolaAngolaAngola, officially the Republic of Angola , is a country in south-central Africa bordered by Namibia on the south, the Democratic Republic of the Congo on the north, and Zambia on the east; its west coast is on the Atlantic Ocean with Luanda as its capital city...
n President Eduardo dos Santos, Joaquim David, president of the state-owned oil company, Sonangol, states that Angola will increase its crude oil production by 10 percent per year over the next five years, reaching 720 Moilbbl/d by the end of 1996 and 1 Moilbbl/d by 2001. The statement comes amidst sporadic violence involving government forces and the rebel group UNITAUNITAThe National Union for the Total Independence of Angola is the second-largest political party in Angola. Founded in 1966, UNITA fought with the Popular Movement for the Liberation of Angola in the Angolan War for Independence and then against the MPLA in the ensuing civil war .The war was one...
, less than a year after a peace accord was signed ending the country's 20-year-old civil war. At the end of 1995, Angola had raised its crude oil production to 690 Moilbbl/d.
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1994 world oil market chronology
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Chronology of world oil market events (1970-2005)
Chronology of world oil market events (1970-2005)
-1970:*January 1: U.S. Federal oil depletion allowance reduced from 27.5 to 22.0 percent.*May 3: TAP line from Saudi Arabia to the Mediterranean interrupted in Syria, creating all-time tanker rate highs from June to December....
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1996 world oil market chronology
1996 world oil market chronology
*January 17: Iraq agrees to talks concerning a United Nations plan to allow for the Iraqi sale of $1 billion of oil for 90 days for a 180-day trial period. Under Resolution 986, proceeds from the sale would be used for humanitarian purposes. In the past, Iraq has opposed clauses 6 and 8b contained...
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