# data[].attributes.body
This 60 second video shows that the COVID-19 pandemic limited the activity of the United States and the demand was low during the pandemic. The oil price dropped because there is too much oil in the market and nobody needs it.

# data[].attributes.body
Educating citizen to use energy wisely.

# data[].attributes.body
This image shows how bad the situation is when the oil crisis happened in 1974

# data[].attributes.body
The State of Israel was created in 1948 at the Palestine territory which was being controlled by the British and takeover later by the Allied powers. The oil price increase caused by OAPEC(Organization of Arab Petroleum Exporting Countries) reduced the production of their petroleum. After the oil embargo, the oil price did not drop back to the previous price and stayed high. America had put out the Emergency Petroleum Allocation Act to further control the price of petroleum after the crisis.
Moreover, The United States has moved forward to renewable energy to reduce the level of overreliance on petroleum.

# data[].attributes.attachment_link.readable_text
By the early 1970s, American oil consumption-in the form of gasoline and other products-was rising even as domestic oil production was declining, leading to an increasing dependence on oil imported from abroad. Despite this, Americans worried little about a dwindling supply or a spike in prices, and were encouraged in this attitude by policymakers in Washington, who believed that Arab oil exporters couldn't afford to lose the revenue from the U.S. market. These assumptions were demolished in 1973, when an oil embargo imposed by members of the Organization of Arab Petroleum Exporting Countries (OAPEC) led to fuel shortages and sky-high prices throughout much of the decade.

Background to the Energy Crisis

In 1948, the Allied powers had carved land out of the British-controlled territory of Palestine in order to create the state of Israel, which would serve as a homeland for disenfranchised Jews from around the world. Much of the Arab population in the region refused to acknowledge the Israeli state, however, and over the next decades sporadic attacks periodically erupted into full-scale conflict. One of these Arab-Israeli wars, the Yom Kippur War, began in early October 1973, when Egypt and Syria attacked Israel on the Jewish holy day of Yom Kippur. After the Soviet Union began sending arms to Egypt and Syria, U.S. President Richard Nixon began an effort to resupply Israel.

Did you know? In the early 21st century, Americans continue to rely heavily on foreign oil. The United States consumes about 20 million of the roughly 80 million barrels of oil consumed daily in the world, and three-fifths of that is imported.

In response, members of the Organization of Arab Petroleum Exporting Countries (OAPEC) reduced their petroleum production and proclaimed an embargo on oil shipments to the United States and the Netherlands, the main supporters of Israel. Though the Yom Kippur War ended in late October, the embargo and limitations on oil production continued, sparking an international energy crisis. As it turned out, Washington's earlier assumption that an oil boycott for political reasons would hurt the Persian Gulf financially turned out to be wrong, as the increased price per barrel of oil more than made up for the reduced production.

Energy Crisis: Effects in the United States and Abroad

In the three frenzied months after the embargo was announced, the price of oil shot from $3 per barrel to $12. After decades of abundant supply and growing consumption, Americans now faced price hikes and fuel shortages, causing lines to form at gasoline stations around the country. Local, state and national leaders called for measures to conserve energy, asking gas stations to close on Sundays and homeowners to refrain from putting up holiday lights on their houses. In addition to causing major problems in the lives of consumers, the energy crisis was a huge blow to the American automotive industry, which had for decades turned out bigger and bigger cars and would now be outpaced by Japanese manufacturers producing smaller and more fuel-efficient models.

Though the embargo was not enforced uniformly in Europe, the price hikes led to an energy crisis of even greater proportions than in the United States. Countries such as Great Britain, Germany, Switzerland, Norway and Denmark placed limitations on driving, boating and flying, while the British prime minister urged his countrymen only to heat one room in their homes during the winter.

Energy Crisis: Lasting Impact

The oil embargo was lifted in March 1974, but oil prices remained high, and the effects of the energy crisis lingered throughout the decade. In addition to price controls and gasoline rationing, a national speed limit was imposed and daylight saving time was adopted year-round for the period of 1974-75. Environmentalism reached new heights during the crisis, and became a motivating force behind policymaking in Washington. Various acts of legislation during the 1970s sought to redefine America's relationship to fossil fuels and other sources of energy, from the Emergency Petroleum Allocation Act (passed by Congress in November 1973, at the height of the oil panic) to the Energy Policy and Conservation Act of 1975 and the creation of the Department of Energy in 1977.

As part of the movement toward energy reform, efforts were made to stimulate domestic oil production as well as to reduce American dependence on fossil fuels and find alternative sources of power, including renewable energy sources such as solar or wind power, as well as nuclear power. However, after oil prices collapsed in the mid-1980s and prices dropped to more moderate levels, domestic oil production fell once more, while progress toward energy efficiency slowed and foreign imports increased.

# data[].attributes.attachment_link.description
By the early 1970s, American oil consumption-in the form of gasoline and other products-was rising even as domestic oil production was declining, leading to an increasing dependence on oil imported from abroad.

# data[].attributes.body
In October 1973, The Yom-Kippur War has started. Egypt and Syria were fighting Israel. The United States government decided to provide Israel supplies which cause the members of the Organization Of The Petroleum Exporting Counties to decrease the supply of oil to the United States.
In January 1979, The Iranian Revolution cause the low output of oil. The protest decreases the oil supply by 2.5 million barrels per day.
Iran-Iraq War happened right after The Iranian Revolution. the Iran-Iraq war put a restriction on the oil supply in Iran. The oil price was $30 in 1980, which has increased over 100% from 1978 ($12.70 in 1978).

# data[].attributes.attachment_link.readable_text
The oil crisis of the 1970s was brought about by two specific events occurring in the Middle-east, the Yom-Kippur War of 1973 and the Iranian Revolution of 1979. Both events resulted in disruptions of oil supplies from the region which created difficulties for the nations that relied on energy exports from the region. Canada, Australia, New Zealand, the U.S, Western Europe and Japan experienced large shortages in petroleum supplies and as a result suffered high prices.

The countries named above were hard hit because they were industrial centers in the world economy which had a large demand for cheap oil exports from the Middle-east.

By 1970 the Organization of Oil Exporting Countries ( OPEC) had steadily been expanding its share in the market, by 1973 OPEC was supplying 56% of the world's oil, up from 47% in 1965.

The 1973 Crisis

In October of 1973 Egypt and Syria (supported by a number of Arab nations) launched an attack against Israel which came to be known as the Yom-Kippur War. At the time the U.S had rising oil consumption, falling production and increasing imports of oil, mostly from OPEC countries. The decision by the U.S. to intervene in the Yom-Kippur War on the side of Israel had a disastrous effect for the US economy. Early in the war, the U.S decided to supply Israel with arms, this angered the Arab delegation of OPEC which responded with an embargo of oil sales to the U.S, Canada, the UK, Japan and the Netherlands.

The embargo shocked the oil market and created a shortage in supply. The embargoed nations were able to get oil companies to sell them oil from other sources however, the mass confusion resulting from the normal supply translated into a sharp rise in prices. Oil traders and companies having to shift supply lines and resources lead to large transport and transaction costs which played into the already high price resulting from the shortage. Additionally, it took time to sort out new sources which meant the hole left by the embargo was not filled immediately.

The embargo was a shift in global political and economic power as now the OPEC countries (largely centered in the Middle-East) could influence powerful nations such as the UK and U.S by manipulating oil supplies.

It is important to note that OPEC did and does not have a monopoly over the oil market, in 1973 they only had 56% of the oil market and while this led to a large amount of influence it does not allow OPEC to totally control the market. OPEC is an international cartel. The governments of the OPEC countries agreed to coordinate with petroleum firms (both state owned and private) in order to manipulate the worldwide oil supply and therefore the price of oil. OPEC has always had trouble cooperating, the 12 countries are not always able to coordinate policies to ensure their control over the market due to a large number of political and economic factors. Because OPEC does not control the whole market they are restricted by what the rest of the market does. In the instance of the 1973 embargo the embargoes nations were able to reconfigure their supply lines to keep the oil flowing despite a short-term drop in supply and rise in prices. The ability to find other sources limited the effects of the embargo to the short term.

Additionally, the OPEC nations had inadequate or underdeveloped downstream activities so they are reliant on mostly western companies to get their product refined and to market.

By May 1974, the U.S was able to convince Israel to withdraw their troops form the Sinai peninsula (A strip of land east of the Suez Canal seized form Egypt by Israel in the Six-Day War of 1967)and as a result, the embargo was lifted and supplies of oil began to flow again.

The Iranian Revolution (1979)

On January 16, 1979, the Shah of Iran , Mohammad Reza Shah Pahlavi was exiled after mass protest and strikes. The Shah was exiled and there was a vote to reconstitute the Imperial State of Iran into the Islamic Republic of Iran. The new republic was led by the religious leader, Ayatollah Khomeini who got the title of Supreme Leader.

During the revolution, the workers of the oil sector had been actively protesting which ground Iranian oil production to a halt. The loss of production amounted to 2.5 million barrels per day. The loss in production left a large hole in the export of oil and the other OPEC countries mad an effort to increase their production in order to keep prices reasonable and the supply flowing.

The lower level of productions caused prices to rise, even when the new government had made an effort to revamp production, it was still not enough to offset the initial loss.

Iran-Iraq War

Following the Iranian Revolution in January 1979, the neighboring country of Iraq under its leader Saddam Hussein invaded Iran in September of 1980 in fear that the revolution might spread into Iraq. The war had a devastating effect on both countries, with regards to the effects on oil, the production of both countries was vastly decreased.

The Iranian Revolution (1979) and the subsequent Iran-Iraq War (1980-1988) restricted the supply of oil from Iran, their production had collapsed. Production increases form other OPEC members plugged the hole left by Iranian production. By July, 1980 the oil marker price was $30 (over $100.00 today), more than double the $12.70 market price in December 1978. By the 1990s the price of OPEC oil had increased almost 40% since 1980.

The effects of this conflict were short lived on the economy however, nations had already mobilized efforts to stabilize oil supplies after the 1973 crisis. Other oil sources had been under development in Alaska, the Gulf of Mexico, Siberia, Canada and the North Sea. In addition, countries dependent on oil from the Middle-east region had begun to shift away from oil as an energy source in order to avoid the fluctuations in supply and price. Countries reliant on OPEC oil sought to mitigate the effects of rising prices and dependence by replacing oil with other fuel sources such as coal, nuclear power and natural gas. The switch to coal for electrical generation was a simple change, in addition more research was done and emphasis was placed on the use of nuclear power to encourage the switch from oil.

References

# data[].attributes.attachment_link.description
The oil crisis of the 1970s was brought about by two specific events occurring in the Middle-east, the Yom-Kippur War of 1973 and the Iranian Revolution of 1979. Both events resulted in disruptions of oil supplies from the region which created difficulties for the nations that relied on energy exports from the region.

# data[].attributes.body
In 1973, Oil embargo occurred between Arab and the United States. Arab has shortened the amount of oil output to the United State which affects the oil price to skyrocket. The 37th United States President Richard M. Nixon put a lot of effort into balancing the power of global oil production.
However, the embargo created a high inflation rate and inactivity of oil importers.

# data[].attributes.attachment_link.readable_text
During the 1973 Arab-Israeli War, Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an embargo against the United States in retaliation for the U.S. decision to re-supply the Israeli military and to gain leverage in the post-war peace negotiations. Arab OPEC members also extended the embargo to other countries that supported Israel including the Netherlands, Portugal, and South Africa. The embargo both banned petroleum exports to the targeted nations and introduced cuts in oil production. Several years of negotiations between oil-producing nations and oil companies had already destabilized a decades-old pricing system, which exacerbated the embargo's effects.

The 1973 Oil Embargo acutely strained a U.S. economy that had grown increasingly dependent on foreign oil. The efforts of President Richard M. Nixon's administration to end the embargo signaled a complex shift in the global financial balance of power to oil-producing states and triggered a slew of U.S. attempts to address the foreign policy challenges emanating from long-term dependence on foreign oil.

By 1973, OPEC had demanded that foreign oil corporations increase prices and cede greater shares of revenue to their local subsidiaries. In April, the Nixon administration announced a new energy strategy to boost domestic production to reduce U.S. vulnerability to oil imports and ease the strain of nationwide fuel shortages. That vulnerability would become overtly clear in the fall of that year.

The onset of the embargo contributed to an upward spiral in oil prices with global implications. The price of oil per barrel first doubled, then quadrupled, imposing skyrocketing costs on consumers and structural challenges to the stability of whole national economies. Since the embargo coincided with a devaluation of the dollar, a global recession seemed imminent. U.S. allies in Europe and Japan had stockpiled oil supplies, and thereby secured for themselves a short-term cushion, but the long-term possibility of high oil prices and recession precipitated a rift within the Atlantic Alliance. European nations and Japan found themselves in the uncomfortable position of needing U.S. assistance to secure energy sources, even as they sought to disassociate themselves from U.S. Middle East policy. The United States, which faced a growing dependence on oil consumption and dwindling domestic reserves, found itself more reliant on imported oil than ever before, having to negotiate an end to the embargo under harsh domestic economic circumstances that served to diminish its international leverage. To complicate matters, the embargo's organizers linked its end to successful U.S. efforts to bring about peace between Israel and its Arab neighbors.

Partly in response to these developments, on November 7 the Nixon administration announced Project Independence to promote domestic energy independence. It also engaged in intensive diplomatic efforts among its allies, promoting a consumers' union that would provide strategic depth and a consumers' cartel to control oil pricing. Both of these efforts were only partially successful.

President Nixon and Secretary of State Henry Kissinger recognized the constraints inherent in peace talks to end the war that were coupled with negotiations with Arab OPEC members to end the embargo and increase production. But they also recognized the linkage between the issues in the minds of Arab leaders. The Nixon administration began parallel negotiations with key oil producers to end the embargo, and with Egypt, Syria, and Israel to arrange an Israeli pullout from the Sinai and the Golan Heights. Initial discussions between Kissinger and Arab leaders began in November 1973 and culminated with the First Egyptian-Israeli Disengagement Agreement on January 18, 1974. Though a finalized peace deal failed to materialize, the prospect of a negotiated end to hostilities between Israel and Syria proved sufficient to convince the relevant parties to lift the embargo in March 1974.

The embargo laid bare one of the foremost challenges confronting U.S. policy in the Middle East, that of balancing the contradictory demands of unflinching support for Israel and the preservation of close ties to the Arab oil-producing monarchies. The strains on U.S. bilateral relations with Saudi Arabia revealed the difficulty of reconciling those demands. The U.S. response to the events of 1973-1974 also clarified the need to reconcile U.S. support for Israel to counterbalance Soviet influence in the Arab world with both foreign and domestic economic policies.

The full impact of the embargo, including high inflation and stagnation in oil importers, resulted from a complex set of factors beyond the proximate actions taken by the Arab members of OPEC. The declining leverage of the U.S. and European oil corporations (the "Seven Sisters") that had hitherto stabilized the global oil market, the erosion of excess capacity of East Texas oil fields, and the recent decision to allow the U.S. dollar to float freely in the international exchange all played a role in exacerbating the crisis. Once the broader impact of these factors set in throughout the United States, it triggered new measures beyond the April and November 1973 efforts that focused on energy conservation and development of domestic energy sources. These measures included the creation of the Strategic Petroleum Reserve, a national 55-mile-per-hour speed limit on U.S. highways, and later, President Gerald R. Ford's administration's imposition of fuel economy standards. It also prompted the creation of the International Energy Agency proposed by Kissinger.

# data[].attributes.attachment_link.title
Milestones in the History of U.S. Foreign Relations - Office of the Historian

# data[].attributes.headline
The 1970s Oil Crisis — Could It Happen Again?

# data[].attributes.subject
The 1970s Oil Crisis — Could It Happen Again?

# data[].attributes.body
This short video shows that the side effect of the sudden petroleum price change and how would this change human life.

# data[].attributes.attachment_link.title
The 1970s Oil Crisis — Could It Happen Again?

# data[].attributes.headline
Stagflation and the Oil Crisis of the 1970s

# data[].attributes.subject
Stagflation and the Oil Crisis of the 1970s

# data[].attributes.body
This video explained the reason of the oil crisis from the 1979 and how did the government adopted the situation. resolve the stagflation(Stagnant & Inflation).

# data[].attributes.attachment_link.title
Stagflation and the Oil Crisis of the 1970s

# data[].attributes.headline
1970s Energy Crisis on Reel America - Preview

# data[].attributes.subject
1970s Energy Crisis on Reel America - Preview

# data[].attributes.body
This video told us that in 1960 The United States had relied on imported oil as 30% of total oil needs. This is why the oil crisis is a really big problem in the United States.

# data[].attributes.attachment_link.title
1970s Energy Crisis on Reel America - Preview

# data[].attributes.body
There were two major oil crises in the 1970s. One is in 1973 (Arab oil embargo), there was a war between Arab and Israeli. Arab is a member of the Organization of Petroleum Exporting Countries (OPEC) and Arab decided to lower the exports of petroleum supplies to countries that support Israeli.
The other one happened in the 1978~1979. The oil crisis is caused by the Iranian Revolution. The revolution created a huge loss of oil production. Which lead to the rise of the gas price. The problem has been solved by other oil production methods and became oversupplied instead of shorthage.

# data[].attributes.attachment_link.readable_text
Oil crisis, a sudden rise in the price of oil that is often accompanied by decreased supply. Since oil provides the main source of energy for advanced industrial economies, an oil crisis can endanger economic and political stability throughout the global economy.

In the post- World War II period there have been two major oil crises. The first occurred in 1973, when Arab members of OPEC (Organization of the Petroleum Exporting Countries) decided to quadruple the price of oil to almost $12 a barrel ( see Arab oil embargo). Oil exports to the United States, Japan, and western Europe, which together consumed more than half the world's energy, were also prohibited. OPEC's decision was made in retaliation for Western support of Israel against Egypt and Syria during the Yom Kippur War (1973) and in response to a persistent decline in the value of the U.S. dollar (the denominated currency for oil sales), which had eroded the export earnings of OPEC states. With the global capitalist economy already experiencing difficulties, these actions precipitated a steep recession accompanied by rising inflation. This forced capitalist countries to embark on a process of economic restructuring in order to reduce their dependency on oil and prompted fears that the United States might take military action in order to secure free access to its energy supplies. Although the oil embargo was lifted in 1974, oil prices remained high, and the capitalist world economy continued to stagnate throughout the 1970s.

Another major oil crisis occurred in 1979, a result of the Iranian Revolution (1978-79). High levels of social unrest severely damaged the Iranian oil industry, leading to a large loss of output and a corresponding rise in prices. The situation worsened following the outbreak of the Iran-Iraq War (1980-88), which further added to the level of instability throughout the region. In 1981 the price of oil was stabilized at $32 per barrel. By 1983, however, major capitalist economies had adopted more-efficient methods of production, and the problems of the 1970s had been transformed into a relative oversupply of oil rather than a shortage.

Steven Kettell

Learn More in these related Britannica articles:

Arab oil embargo, temporary cessation of oil shipments from the Middle East to the United States, the Netherlands, Portugal, Rhodesia, and South Africa, imposed by oil-producing Arab countries in October 1973 in retaliation for support of Israel during the Yom Kippur War; the embargo on the United States was lifted...

Oil, any greasy substance that is liquid at room temperature and insoluble in water. It may be fixed, or nonvolatile, oil; essential oil; or mineral oil ( see petroleum). A brief treatment of fixed oils follows. For full treatment of edible oils, see fat and oil processing. Fixed oils and fats have the...

World War II, conflict that involved virtually every part of the world during the years 1939-45. The principal belligerents were the Axis powers-Germany, Italy, and Japan-and the Allies-France, Great Britain, the United States, the Soviet Union, and, to a lesser extent, China. The war was...

# data[].attributes.attachment_link.title
oil crisis | Definition, History, & Facts

# data[].attributes.attachment_link.description
Oil crisis, a sudden rise in the price of oil that is often accompanied by decreased supply. Since oil provides the main source of energy for advanced industrial economies, an oil crisis can endanger economic and political stability throughout the global economy.