The consumption of petroleum dropped both in 1974 and 1975 as a result of management efforts. Although the utilization was reduced, all oil products were much more costly and the prices of gasoline rose by 57%, and home heating oil rose by more than 90%. Such changes are considered important factors for the economic stagnation that occurred both in 1974 and 1975 (Department of Energy, 2002). The globe is round as a billiard ball, and when it is touched in one side, the opposite side feels the effect. In late 1978, the Iranian Revolution began, which occasioned in a drop of almost 4 million barrels of crude oil a day until 1981. During the same period, the Iran-Iraq war happened, subjecting other petroleum producers to reduce their output. Because of this drop, the world saw a stratospheric increase of the price of the barrels (Kubarych, 2005). Since then, the capacity to gather resources from oil producing countries increased drastically, allowing strong changes in the way people among oil-exporting countries live.
The capacity of OPEC to pool resources has since then increased drastically, allowing substantial changes to the way people among those three oil-exporting countries live. As oil prices rose to the highest price ever, most states in the Middle East benefited from intensified revenues. Oil-producing states benefited directly in the form of high export earnings. Equally, these states had many job opportunities available as a result of the booming economies of the Gulf (Department of Energy, 2002). The non oil-producing Middle Eastern states also gained some benefits from the oil-producing states. Countless individuals who lived surrounding the non oil-producing states enjoyed great profit by going to the oil-producing states to earn money as teachers, construction workers, oil-field workers, and so forth. The capital earn by those visitant-workers sent home to their families was of tremendous importance to the national income in states such as Jordan, Egypt, Yemen, and also the Palestinian zones (The Middle East, n.
