International records / Foreign Relations of the United States

9. Memorandum From the Deputy Assistant Secretary of State for International Resources and Food Policy ( Katz ) to the Assistant Secretary of State for Economic Affairs ( Trezise )

e only one is non-Arab—Iran. 4. Imports of large amounts of Arab oil could not be entirely replaced from non-Arab sources in the Eastern Hemisphere. In 1975 there will still be only three main non-Arab supplies of oil in the Eastern Hemisphere—Iran, Nigeria, and Indonesia. Based on 20 percent shut-in capacity in these countries (companies usually prefer to operate at 85 or 90 percent of capacity) these three countries in 1975 will have only about two million b/d spare capacity. Non-Arab countries in the Eastern Hemisphere now have less than one million b/d spare capacity (see Appendix C). In t…