Part 3 addresses the relationship between oil imports and national security. While the 1967 embargo really didnt reduce the flow of oil to the u. In the middle of 1973, wholesale prices of industrial commodities were. By putting an end to decades of cheap energy, the 197374 oil crisis, which was led by arab members of the organization of petroleum exporting countries opec, exacerbated the economic difficulties facing many industrialized nations, forced developing countries to finance their energy imports. Though the embargo itself only lasted about 5 months, its effects are still felt today. The 1973 oil crisis began in october 1973 when the members of the organization of arab petroleum exporting countries proclaimed an oil embargo. Between october 1973 and january 1974 world oil prices quadrupled. Randall frsc director latin american research centre university of calgary in october 1973 in retaliation for u. There were a series of energy crises between 1967 and 1979 caused by problems in the middle east but the most significant started in 1973 when arab oil producers imposed an embargo. Its impact is felt, on a daily basis and under many aspects. Put simply, arabian oil producers imposed the embargo in a bid to boycott america, and punish the west for its support of israel in the yom kippur war.
While for various reasons i dont currently believe this will come to pass, it is a good time. Tracing the effects of the oil embargo in 197374, opec imposed an embargo on exports to the united states and subsequently increased the price of oil fourfold. The 1973 oil embargo alone wasnt enough to cause stagflation. Recalling the oil shock of 40 years ago resources for the future. In 1973, that oil shock looked like a triumph for opec and a calamity for the rest of the world. On october 6, 1973, egyptian and syrian troops attacked israel in an attempt to regain the land occupied by israel since 1967, and for several days the israeli army had its back against the wall. Opec cut production several more times in the 1970s, and by 1980 the price of crude oil was 10 times what it. The 1973 oil crisis started in october 1973, when the members of organization of arab petroleum exporting countries or the oapec consisting of the arab members of opec, plus egypt, syria and tunisia proclaimed an oil embargo in response to the u. The 1973 oil shock was opecs reaction to the american support of israel in the yom kippur war. In response to the oil crisis, the united states took steps to become increasingly energy. Prior to 1970s, the united states and a number of european companies called the seven sisters controlled the extraction, export and shipping of oil. A brief history with documents the bedford series in history and culture.
The opec oil embargo was an event where the 12 countries that made up opec stopped selling oil to the united states. Here we look at the history of the oil market under each us president since that year. A video montage of the culprits and victims waiting in long lines. There were fears of serious shortages, for iran was by far the largest producer of crude in the middle east and abadan was the biggest refinery in the world. Nixons administration to end the embargo signaled a complex shift in the global financial balance of power to oilproducing states and triggered a slew of u. In secret, the dutch government sent a substantial amount of. Between 1960 and 1971 international oil prices, posted by the oil companies, were held. A brief history with documents the bedford series in history and culture merrill, karen r. As there was very little spare capacity production in the. How the 1973 oil embargo saved the planet foreign affairs. The arab oil embargo caused gas shortages nationwide and shaped u. The oil embargo of 1979 was not really much of an embargo at all, at least not in the sense of the 1973 embargo.
Background and considerations congressional research service summary during an era of oil price controls and following the 1973 organization of arab petroleum exporting countries oil embargo, congress passed the energy policy and conservation act of. The output cuts in 1979, however, were much larger and the overall effect more lasting than its predecessor six years earlier. The embargo was targeted at nations perceived as supporting israel during the yom kippur war. The netherlands played a remarkable role during the october war and the oil crisis of 1973. Instead, it was a combination of fiscal and monetary policy that created it. Which of the following was not a result of the 1973 opec oil embargo. More recently we have all experienced another rapid increase in world oil prices that is causing significant readjustments in. Argument the end of opec uc davis graduate school of. In october of 1973 middleeastern opec nations stopped exports to the us and other western nations. The embargo ceased us oil imports from participating oapec nations, and. In the case of the iranian revolution the timing is off in that the oil price only surged starting in may 1979 after the exogenous oil supply. Bonn embassy to secretary of state, 20 november 1973.
Whether it is to drive from a point a to a point b or to fly between distant countries, oil always had a fundamental impact on our civilization. The energy crisis that ensued brought an end to the era of cheap gasoline and other. Its history, motives, and consequences, oil and gas journal 103, no. The initial nations targeted were canada, japan, the netherlands, the united kingdom and the united states with the embargo also later extended to. The 1973 oil crisis started in october 1973, when the members of organization of arab petroleum exporting countries or the oapec consisting of the arab members of opec, plus egypt, syria and tunisia proclaimed an oil embargo. Saudi oil minister sheik yamani conceded afterwards that the 1973 embargo did not imply that we could reduce imports to the united states the world is really just one market.
Fuel efficiency standards live on after 1973 oil embargo this is the 40th anniversary of the arab oil embargo, which triggered a sevenyear energy crisis. Opec oil embargo of 1973on october 17, 1973, arab oil producers declared anembargo that drastically limited the shipment of oil to theunited states opecembargo. Result this effectively shut down exports to the us. Energy crisis briefing national geographic society. Together, the arab members of opec, as well as egypt and syria developed the scheme, and proclaimed the restrictions in 1973. In 1973, the organization of petroleum exporting countries opec halted oil production and stopped shipping oil to. With the recent turmoil in the middle east, there has been increased talk of the possibility for an arab oil embargo against the u. Oil prices, however, remained considerably higher than their mid1973 level. The increases in the price of oil in 197374 were sudden and dramatic. The energy situation in the united states in 1973 the economic and energy situation in 1973 made the united states especially sensitive to the oil embargo.
President nixons actions to maintain american prosperity. The arab oil embargo of 197374, in contrast, did affect the flow of oil supplies, but the embargo decision was taken explicitly with reference to the state of the u. How the 1973 oil embargo still affects us energy agenda. What were the shortterm and longterm effects of the 1973. Arab oil producers had met in kuwait to discuss wartime oil supply policy where they decided, as this cable reported, to begin a complete embargo on oil to the united states.
Learn vocabulary, terms, and more with flashcards, games, and other study tools. Reed college economics effects of oil embargo case. Oil embargo definition and meaning collins english. The energy crisis of october 1973 actually consisted of two distinct, albeit inter. Argument the end of opec forty years after the arab oil embargo, new tec hnologies are dramatically reshaping the geopolitics of the middle east by amy myers jaffe, ed morse. What are the standards that ought to be considered by policymakers, and, under such standards, what is the nature. In response to the oil embargo, nixon instituted additional price controls and began rationing oil to states. October 2003 marked the 30 th anniversary of the arab oil embargo levied against the netherlands as a punishment for its proisraeli stance in the october war. The lasting impact of the 1973 oil embargo financial sense. The 1970s arabopec oil embargo and latin america stephen j. One commentator states, an oil embargo is not a common commercial practice.
214 223 716 896 226 690 311 1209 322 592 651 1067 1051 1354 510 206 259 938 424 707 1376 1263 257 1112 1027 713 135 914 69 1327 25 1348 365 1465 1010 782 124 1037 876 879 612