1973 Oil Crisis
When leading worldwide producers reached their production peaks in the 1960s, the pressure on world oil prices increased significantly, which in turn increased the demand for oil with these countries. The Middle East was a central figure in this supplying of oil, and when the US re-supplied the Israeli military in the Yom Kippur War, the Organization of Arab Petroleum Exporting Countries (OAPEC) declared limitations on oil shipments to the US and other countries. In response, the Nixon administration negotiated with both sides of the issue, and when Israeli forces were convinced to pull back from Syrian territory, OAPEC lifted the embargo. This newfound leverage allowed the OAPEC members to increase the oil prices to the world. This impacted the world economies dependent on the supply of oil. The price of oil in the US quadrupled, retail gas prices rose from an average of 38.5 cents to 55.1 cents, and Nixon asked for gas stations to not sell any gas on the weekends. This resulted in long lines for the gas stations all across the country.
1979 Oil Crisis
When the Iranian Revolution exploded in 1979 as the Shah of Iran fled, allowing for a new government to control Iran, the oil exports were crippled. As a result, other members of OPEC covered the loss in production, greatly inflating the oil prices for the consumer nations. The price of crude oil doubled over the next year in the US. Long lines for gas stations started up again after panic spread across the country. In response to the crisis, President Carter delivered the "Crisis of Confidence" speech to encourage the citizens to conserve as much energy as possible.
These two major oil crises created the recession that marked the end of World War II era production, creating high unemployment while also high inflation. Even though the economy revitalized in the 1980s, the inflation lasted through another decade.
Were these oil crises the start to US involvement and direct conflict with Middle Eastern countries?
Sources:
https://en.wikipedia.org/wiki/1970s_energy_crisis#1973_oil_crisis
http://www.history.com/topics/energy-crisis
https://bluejayblog.wordpress.com/2013/07/15/the-crisis-of-confidence/
Wow cool post about the oil crisis of the 1970s. My parents and grandparents remember having to wait in the huge lines for gas at stations that were often a mile long. It is amazing how much the US depends on outside exports for oil. 2008 saw another shortage of oil and huge increase in the price of gasoline at almost $5 a gallon in California. With current foreign relations with the Middle East, it will be interesting to see what will happen in the future with the oil supply that the US receives from many Middle Eastern countries as relations get better or worse.
ReplyDeleteI think you pose an interesting question, similar to whether the chicken or the egg came first. Oil has always been an American interest in the middle east, emerging prior to and during World War II as a vital interest in the region. In the case of the 1973 oil crisis, US-intervention came before the major oil crisis, as following 1962 and later the Six-Day War the US replaced France as Israel's main arms supplier. Similarly in Iran, the US-friendly Shah was installed before the big oil crisis. It seems that oil has always prompted some American involvement in the region, but was greatly increased after these major oil crises. The 80's and 90's saw the increase of American-led peace efforts between Israel and Arab nations, and an ongoing opposition to radicalization in the area, presumably as a method to maintain the stability of exports in the region.
ReplyDeleteInteresting post about the energy crisis! Another part of the 1979 energy crisis is the Iran Hostage Crisis, where because the US was giving refuge to the shah, students in Iran took over the US embassy and held Americans hostage until the shah was returned to them. This raised tensions and furthered the energy crisis.
ReplyDeleteVery interesting post about the energy crisis. I really liked how you broke down the energy crises of the 80's into smaller crises, and pinpointed their roots. I also appreciated how you highlighted both the foreign causes and the domestic impact, as well as the responses of Carter's administration.
ReplyDeleteVery interesting post about the energy crisis. I really liked how you broke down the energy crises of the 80's into smaller crises, and pinpointed their roots. I also appreciated how you highlighted both the foreign causes and the domestic impact, as well as the responses of Carter's administration.
ReplyDelete