The post-World War II economic boom led to a significant increase in the demand for oil. This was driven by the growth of the automotive industry, as well as the increasing use of oil in other sectors such as power generation and manufacturing.
New oil discoveries
The discovery of new oil fields in the Middle East and North Africa in the 1950s and 1960s significantly increased the world's oil supply. These discoveries, along with advances in drilling and extraction technology, made it possible to produce oil more cheaply and efficiently.
Political factors
The nationalization of oil industries in the Middle East and North Africa in the 1960s and 1970s led to increased control over oil production by these countries. This gave them greater power to influence the global oil market and contributed to the rise in oil prices.
Technological advances
Advances in drilling and extraction technology, such as the development of offshore drilling platforms and horizontal drilling, made it possible to access and produce oil from previously inaccessible areas. These technological advancements also helped to reduce the cost of oil production.