HISTORY
THE COLD WAR ERA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To determine how much each country has to pay for petroleum drilling.
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To make sure Americans pay the least amount of money for petroleum products.
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To ship petroleum out of the United States to other countries to sustain their level of usage.
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To make sure Americans receive the petroleum products necessary to sustain their level of usage.
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Detailed explanation-1: -During the 1973 Arab-Israeli War, Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an embargo against the United States in retaliation for the U.S. decision to re-supply the Israeli military and to gain leverage in the post-war peace negotiations.
Detailed explanation-2: -It often makes more sense for the refineries in the gulf to export some of their gasoline to Mexico, rather than expensively ship their product all the way to the east coast of the U.S., which gets cheaper gasoline from Europe. oil prices down which keeps prices in the U.S. lower.
Detailed explanation-3: -As a result, the United States experienced its first fuel shortage and first significant increase in gasoline prices since World War II. In response to the embargo, the U.S. government imposed fuel rationing and lowered speed limits to reduce consumption.
Detailed explanation-4: -The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization.