ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Chile-Bathed in Blood

November 3, 1973 immediately and their total earnings from crude export will also he higher until the tnt in production touches 40 per cent. Thereafter they will need to jack up crude prices to protect their total Teverme. litis should be quite feasible since if Aral) crude production declines by more than 40 per rent, the worldwide shortage of oil will make possible a further rise in prices. The prospects of any substantial shift to other energy sources like coal are naturally limited in the short run. Thus the Arabs will be able to use the oil weapon to put pressure on Israel without any reduction in their total income from crude exports. The irony of the situation is that the US, which is the principal supporter of Israel, will get away relatively lightly as its reliance on Arabian crude is only to the extent of 6' per cent of its total oil consumption. What is more, it can make good part of the shortage through larger production in Indonesia, Iran and Venezuela, all of whom are eager to exploit the boom in the oil market.

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