oupled with the rolling reduction in oil production, created a world-wide energy crisis and skyrocketing prices, particularly in the United States. In a matter of months during 1973-1974, OPEC increased prices by 400%. Although the motivation for the price increase was politically based, its results convinced the United States and other world powers that OPEC countries had a very powerful economic weapon in their arsenal.This astonishing use of power established OPEC as a major contender in the international political economy. Prior to the oil shock of 1973, the only major accomplishment of OPEC had been stabilizing price levels in 1960. Now, OPEC, in particular the Arab nations, had created a great surge in the economies of several economic superpowers. Of all the countries that were affected by OPECs actions, the aftermath of this situation was particularly significant in the developing nations of the south. Although many would say that OPECs actions actually halted the souths quest for a NIEO, evidence suggests that OPEC actually served to advance the souths interests. Before the advent of OPEC, the South was reluctant to find a legitimate form of pressure to encourage the North to accommodate their requests. With the oil price shocks caused by OPEC, the South unveiled an economic weapon that could pressure the superpowers in the North into taking them seriously. Prior to the energy crisis, the North had no motivation other than morality to provide sufficient aid to developing countries. Many developing countries viewed the energy crisis situation as an opportunity to voice their concerns to the North with the assumption that their requests would be answered. OPEC also assisted in shifting confidence away from the North and towards the South. The North had previously believed that the natural resources of the world could be accessed easily and inexpensively. OPEC convinced the North that the South could be a major factor...
