1973 oil crisis - Decline of OPEC

The 1973 oil crisis began in earnest on October 17, 1973, when Arab members of the Organization of Petroleum Exporting Countries (OPEC), during the Yom Kippur War, announced that they would no longer ship petroleum to nations that had supported Israel in its conflict with Syria and Egypt -- that is, to the United States and its allies in Western Europe. At around the same time, OPEC members agreed to use their leverage over the world price-setting mechanism for oil in order to quadruple world oil prices. The complete dependence ...

Including:

• 1973 oil crisis - Origins of the 1973 world oil shock
• 1973 oil crisis - World competition over resources
• 1973 oil crisis - Founding of OPEC
• 1973 oil crisis - The Yom Kippur War
• 1973 oil crisis - Arab oil embargo
• 1973 oil crisis - Chronology
• 1973 oil crisis - Immediate economic impact of the embargo
• 1973 oil crisis - Price controls and rationing
• 1973 oil crisis - Conservation and reduction in demand
• 1973 oil crisis - Search for alternatives
• 1973 oil crisis - Macroeconomic effects
• 1973 oil crisis - Perception of the oil industry
• 1973 oil crisis - Effects on international relations
• 1973 oil crisis - Decline of OPEC
• 1973 oil crisis - Notes and references

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Since 1973, OPEC failed to hold on to its preeminent position, and by 1981 its production was surpassed by that of other countries. Additionally, its own member nations were divided among themselves. Saudi Arabia, trying to gain back market share and to make the most expensive oil production facilities less profitable or even unprofitable, exerted pressure toward lowering prices. The world price of oil, which had reached a peak in 1979, at more than US$80 a barrel (503 US$/m³) in 2004 dollars, decreased during the early 1980s to US$38 a bar ...

See also:

1973 oil crisis, 1973 oil crisis - Origins of the 1973 world oil shock, 1973 oil crisis - World competition over resources, 1973 oil crisis - Founding of OPEC, 1973 oil crisis - The Yom Kippur War, 1973 oil crisis - Arab oil embargo, 1973 oil crisis - Chronology, 1973 oil crisis - Immediate economic impact of the embargo, 1973 oil crisis - Price controls and rationing, 1973 oil crisis - Conservation and reduction in demand, 1973 oil crisis - Search for alternatives, 1973 oil crisis - Macroeconomic effects, 1973 oil crisis - Perception of the oil industry, 1973 oil crisis - Effects on international relations, 1973 oil crisis - Decline of OPEC, 1973 oil crisis - Notes and references

Read more here: » 1973 oil crisis: Encyclopedia II - 1973 oil crisis - Decline of OPEC

Since 1973, OPEC failed to hold on to its preeminent position, and by 1981, its production was surpassed by that of other countries. Additionally, its own member nations were divided among themselves. Saudi Arabia, trying to gain back market share, increased production and caused downward pressure on prices, making high-cost oil production facilities less profitable or even unprofitable. The world price of oil, which had reached a peak in 1979, at more than US$80 a barrel (503 US$/m³) in 2004 dollars, decreased during the early 1980s to US$ ...

See also:

1973 oil crisis, 1973 oil crisis - Origins of the 1973 world oil shock, 1973 oil crisis - World competition over resources, 1973 oil crisis - Founding of OPEC, 1973 oil crisis - The Yom Kippur War, 1973 oil crisis - Arab oil embargo, 1973 oil crisis - Chronology, 1973 oil crisis - Immediate economic impact of the embargo, 1973 oil crisis - Price controls and rationing, 1973 oil crisis - Conservation and reduction in demand, 1973 oil crisis - Search for alternatives, 1973 oil crisis - Macroeconomic effects, 1973 oil crisis - Perception of the oil industry, 1973 oil crisis - Effects on international relations, 1973 oil crisis - Decline of OPEC, 1973 oil crisis - Notes and references

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On October 16th, 1973, as part of the political strategy that included the Yom Kippur War, OAPEC cut production of oil, and placed an embargo on shipments of crude oil to the West, with the United States and the Netherlands specifically targeted. Also imposed was a boycott of Israel, and price increases. Since oil demand falls little with price rises, prices had to rise dramatically to reduce demand to the new, lower, level of supply. Anticipating this, the market price for oil immediately rose substantially. A world financial system already ...

See also:

1973 oil crisis, 1973 oil crisis - Origins of the 1973 world oil shock, 1973 oil crisis - World competition over resources, 1973 oil crisis - Founding of OPEC, 1973 oil crisis - The Yom Kippur War, 1973 oil crisis - Arab oil embargo, 1973 oil crisis - Chronology, 1973 oil crisis - Immediate economic impact of the embargo, 1973 oil crisis - Price controls and rationing, 1973 oil crisis - Conservation and reduction in demand, 1973 oil crisis - Search for alternatives, 1973 oil crisis - Macroeconomic effects, 1973 oil crisis - Perception of the oil industry, 1973 oil crisis - Effects on international relations, 1973 oil crisis - Decline of OPEC, 1973 oil crisis - Notes and references

Read more here: » 1973 oil crisis: Encyclopedia II - 1973 oil crisis - Arab oil embargo

1973 oil crisis - World competition over resources. The Arab-Israeli conflict triggered an energy crisis in the making. Before the embargo, the industrialized West, especially the United States, had taken cheap and plentiful petroleum for granted. (Indeed, the form American cities took after World War II - with expansive suburbs full of detached, single-family homes - depended on the automobile as the principal means of transportation - a form that consumes oil en masse as fuel.) Between 1945 and the late ...

See also:

1973 oil crisis, 1973 oil crisis - Origins of the 1973 world oil shock, 1973 oil crisis - World competition over resources, 1973 oil crisis - Founding of OPEC, 1973 oil crisis - The Yom Kippur War, 1973 oil crisis - Arab oil embargo, 1973 oil crisis - Chronology, 1973 oil crisis - Immediate economic impact of the embargo, 1973 oil crisis - Price controls and rationing, 1973 oil crisis - Conservation and reduction in demand, 1973 oil crisis - Search for alternatives, 1973 oil crisis - Macroeconomic effects, 1973 oil crisis - Perception of the oil industry, 1973 oil crisis - Effects on international relations, 1973 oil crisis - Decline of OPEC, 1973 oil crisis - Notes and references

Read more here: » 1973 oil crisis: Encyclopedia II - 1973 oil crisis - Origins of the 1973 world oil shock

The U.S. government response to the embargo was quick, but of limited effectiveness. A National Maximum Speed Limit of 55 miles per hour (88 kilometers per hour) was imposed to help reduce consumption. This, incidentally, was claimed by some to have caused traffic fatalities to drop by 23 % between 1973 and 1974. As a result this law was not completely reversed until 1995. President Nixon named William Simon as an official "energy czar," and in 1977 a cabinet-level Department of Energy was created, which led to the creation of the United States' Strategic Petroleum Reserve. The ...

See also:

1973 oil crisis, 1973 oil crisis - Origins of the 1973 world oil shock, 1973 oil crisis - World competition over resources, 1973 oil crisis - Founding of OPEC, 1973 oil crisis - The Yom Kippur War, 1973 oil crisis - Arab oil embargo, 1973 oil crisis - Chronology, 1973 oil crisis - Immediate economic impact of the embargo, 1973 oil crisis - Price controls and rationing, 1973 oil crisis - Conservation and reduction in demand, 1973 oil crisis - Search for alternatives, 1973 oil crisis - Macroeconomic effects, 1973 oil crisis - Perception of the oil industry, 1973 oil crisis - Effects on international relations, 1973 oil crisis - Decline of OPEC, 1973 oil crisis - Notes and references

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The 1973 oil crisis was a major factor in Japanese economy shift away from oil-intensive industries and resulted in huge Japanese investments in industries like electronics. The Western nations' central banks decided to sharply cut interest rates to encourage growth, deciding that inflation was a secondary concern. Although this was the orthodox macroeconomic prescription at the time, the resulting stagflation surprised economists and central bankers, and the policy is now considered by some to have de ...

See also:

1973 oil crisis, 1973 oil crisis - Origins of the 1973 world oil shock, 1973 oil crisis - World competition over resources, 1973 oil crisis - Founding of OPEC, 1973 oil crisis - The Yom Kippur War, 1973 oil crisis - Arab oil embargo, 1973 oil crisis - Chronology, 1973 oil crisis - Immediate economic impact of the embargo, 1973 oil crisis - Price controls and rationing, 1973 oil crisis - Conservation and reduction in demand, 1973 oil crisis - Search for alternatives, 1973 oil crisis - Macroeconomic effects, 1973 oil crisis - Perception of the oil industry, 1973 oil crisis - Effects on international relations, 1973 oil crisis - Decline of OPEC, 1973 oil crisis - Notes and references

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The effects of the embargo were immediate. OPEC forced the oil companies to increase payments drastically. The price of oil quadrupled by 1974 to nearly US$12 per 42 US gallon barrel (75 US$/m³). [1] This increase in the price of oil had a dramatic effect on oil exporting nations, for the countries of the Middle East who had long been dominated by the industrial powers were seen to have acquired control of a vital commodity. The traditional flow of capital reversed as the oil exporting nations accumulated vast wealth. Some of the inc ...

See also:

1973 oil crisis, 1973 oil crisis - Origins of the 1973 world oil shock, 1973 oil crisis - World competition over resources, 1973 oil crisis - Founding of OPEC, 1973 oil crisis - The Yom Kippur War, 1973 oil crisis - Arab oil embargo, 1973 oil crisis - Chronology, 1973 oil crisis - Immediate economic impact of the embargo, 1973 oil crisis - Price controls and rationing, 1973 oil crisis - Conservation and reduction in demand, 1973 oil crisis - Search for alternatives, 1973 oil crisis - Macroeconomic effects, 1973 oil crisis - Perception of the oil industry, 1973 oil crisis - Effects on international relations, 1973 oil crisis - Decline of OPEC, 1973 oil crisis - Notes and references

Read more here: » 1973 oil crisis: Encyclopedia II - 1973 oil crisis - Immediate economic impact of the embargo

The U.S. government response to the embargo was quick, but of limited effectiveness. A National Maximum Speed Limit of 55 miles per hour (88 kilometers per hour) was imposed to help reduce consumption. This, incidentally, was claimed by some to have caused traffic fatalities to drop by 23 percent between 1973 and 1974. As a result this law was not completely reversed until 1995. President Nixon named William Simon as an official "energy czar," and in 1977 a cabinet-level Department of Energy was created, which led to the creation of the United States' Strategic Petroleum Reserve. The ...

See also:

1973 oil crisis, 1973 oil crisis - Origins of the 1973 world oil shock, 1973 oil crisis - World competition over resources, 1973 oil crisis - Founding of OPEC, 1973 oil crisis - The Yom Kippur War, 1973 oil crisis - Arab oil embargo, 1973 oil crisis - Chronology, 1973 oil crisis - Immediate economic impact of the embargo, 1973 oil crisis - Price controls and rationing, 1973 oil crisis - Conservation and reduction in demand, 1973 oil crisis - Search for alternatives, 1973 oil crisis - Macroeconomic effects, 1973 oil crisis - Perception of the oil industry, 1973 oil crisis - Effects on international relations, 1973 oil crisis - Decline of OPEC, 1973 oil crisis - Notes and references

Read more here: » 1973 oil crisis: Encyclopedia II - 1973 oil crisis - Conservation and reduction in demand

The energy crisis led to greater interest in renewable energy, especially wood fuel and spurred research in solar power and wind power. It also led to greater pressure to exploit North American oil sources, and increased the West's dependence on coal and nuclear power. In Australia, heating oil ceased being considered an appropriate winter heating fuel. This often meant that a lot of oil-fired room heaters that were popular from the late-1950s to the early-1970s were considered outdated. It also meant that some enterprising individuals designed aftermarket gas-conversi ...

See also:

1973 oil crisis, 1973 oil crisis - Origins of the 1973 world oil shock, 1973 oil crisis - World competition over resources, 1973 oil crisis - Founding of OPEC, 1973 oil crisis - The Yom Kippur War, 1973 oil crisis - Arab oil embargo, 1973 oil crisis - Chronology, 1973 oil crisis - Immediate economic impact of the embargo, 1973 oil crisis - Price controls and rationing, 1973 oil crisis - Conservation and reduction in demand, 1973 oil crisis - Search for alternatives, 1973 oil crisis - Macroeconomic effects, 1973 oil crisis - Perception of the oil industry, 1973 oil crisis - Effects on international relations, 1973 oil crisis - Decline of OPEC, 1973 oil crisis - Notes and references

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The Cold War policies of the Nixon administration also suffered a major blow in the aftermath of the oil embargo. They had focused on China and the Soviet Union, but the latent challenge to U.S. hegemony coming from the Third World was now starkly evident. U.S. power was under attack even in Latin America. The oil embargo was announced roughly just one month after a right-wing military coup in Chile toppled elected socialist president Salvador Allende on September 11, 1973. The U.S.'s subsequent assistance to this government did littl ...

See also:

1973 oil crisis, 1973 oil crisis - Origins of the 1973 world oil shock, 1973 oil crisis - World competition over resources, 1973 oil crisis - Founding of OPEC, 1973 oil crisis - The Yom Kippur War, 1973 oil crisis - Arab oil embargo, 1973 oil crisis - Chronology, 1973 oil crisis - Immediate economic impact of the embargo, 1973 oil crisis - Price controls and rationing, 1973 oil crisis - Conservation and reduction in demand, 1973 oil crisis - Search for alternatives, 1973 oil crisis - Macroeconomic effects, 1973 oil crisis - Perception of the oil industry, 1973 oil crisis - Effects on international relations, 1973 oil crisis - Decline of OPEC, 1973 oil crisis - Notes and references

Read more here: » 1973 oil crisis: Encyclopedia II - 1973 oil crisis - Effects on international relations