The Prize - The Epic Quest for Oil, Money & Power

Goldman Sachs Research expects oil demand to peak at 110 million barrels a day by 2034. In a scenario with slower EV adoption, oil demand could even increase to 113 million barrels a day by 2040. The rise of renewable energy is reshaping the global energy landscape; however, it takes time to implement policies around renewable energies. When predicting oil demand, one cannot overlook the history of oil and geopolitical risks. Oil provides the point at which foreign policy, international economic considerations, national security, and corporate interests converge.

For those interested in the origin of the oil revolution and how the world revolves around oil, "The Prize - The Epic Quest for Oil, Money & Power" by Daniel Yergin is a starting point for understanding how energy will shape the world of tomorrow. Daniel Yergin, an author on energy and world affairs, was named America’s most influential energy pundit by The New York Times. His award-winning and rigorous research for "The Prize" begins with the drilling of the first well by Colonel Edwin Drake in Pennsylvania in 1859. The book then covers numerous historic events and principles, including:

• Oil Concession of Saudi-Aramco (50/50)

• The Suez Crisis

• David Ricardo’s rent and tenant principle

• The Mexican Expropriation

• The Sherman Antitrust Act

• The Tehran Agreement

• The formation of OPEC

• The Tripoli Agreement

• The creation of the International Energy Agency

• The North-South Dialogue in 1977

• The October War

• Teapot Dome Scandal

• Mexican Nationalism

• The Iranian Hostage Crisis

• The Gulf Crisis

"The Prize" highlights that managing an integrated oil system is a highly complex matter even under calm and relatively predictable circumstances. Yergin articulates two contradictory strands of public policy toward the major oil companies that have appeared and reappeared in the United States. He bluntly writes: “On occasion, Washington would champion the companies and their expansion in order to promote America’s political and economic interests, protect its strategic objectives, and enhance the nation’s wellbeing. At other times, these same companies were subjected to populist assaults against ‘big oil’ for their allegedly greedy, monopolistic ways and indeed for being arrogant and secretive.”

One of the major themes of "The Prize" is the continuing struggle between consumers and producers over the money and power that accrue from petroleum resources. Yergin dissects this ongoing struggle by examining three major oil shocks:

• 1973-1974

• 1979-1981

• 1985-1986

Yergin's meticulous research and engaging narrative make this book a must-read for anyone interested in energy, geopolitics, and the economic forces that drive our world. As we transition to renewable energy sources, the lessons and insights from the book remain relevant, reminding us of the intricate and often tumultuous relationship between energy and global affairs. "The Prize" is a monumental work that provides readers with a comprehensive understanding of oil's critical role in shaping modern history and its implications for the future.