Historical Security Council
Global Energy Crisis
An energy crisis of massive proportions has begun to sweep the globe. The world is still reeling from the oil embargo imposed on western nations by the Organization of Arab Petroleum Exporting Countries (OAPEC), which was prompted by the United States’ staunch support of Israel throughout many regional conflicts, including the Yom Kippur War. Memories of the subsequent recessions, stock-market crashes, lines at gas stations, and oil riots are still present in the minds of countless people across the globe.
And now a new threat to global energy has emerged. With the current political upheaval in Iran, oil production has come to a standstill. The skilled officials, scientists, and engineers who worked for the Shah have been either killed or exiled out of the country by the Islamic revolutionaries led by Ayatollah Khomeini. It seems as though it may be impossible to bring Iranian oil exports up to their previous levels, with experts estimating that it could take up to 10 years to replace the technical expertise and foreign investment that left the nation as a result of the Islamic Revolution. In addition, Iraq has shown signs that they may abandon their current foreign policy toward Iran, and may be considering military action against the country, a move that could further hurt the ability of Middle Eastern nations to export oil.
The ramifications of this crisis are widespread. Worldwide panic in commodities exchanges has caused prices for crude oil and gasoline to skyrocket around the globe, reaching a record price of $36 in the United States, and even higher in regions where oil distribution facilities are poor or non-existent. These prices have not just affected industry. Inflation on almost all items has risen, driven by increased transportation costs. Food, water, medicine, and other necessities are now even harder to afford in areas of the world where poverty is rampant. This crisis has the power to cause both colossal economic damage and humanitarian crises across the globe. The United Nations Security Council must find a way to mitigate this crisis and to prevent future situations such as these from occurring.