1973 Oil Crisis

The Organization of the Petroleum Exporting Countries (OPEC) was formed in 1960, allowing its member nations to gain a larger influence over the price setting mechanism in the oil market. This eventually led to OPEC wielding a significant impact on the global oil industry.

In 1970, a presidential commission recommended the elimination of oil import quotas, signaling a shift in policy towards import controls on oil commodities.

In April 1971, OPEC moves to rebalance profit sharing and oil prices, refusing to allow foreign oil companies to deal with the organization as a whole. This results in separate negotiations for Persian Gulf and Mediterranean producers, leading to higher prices and marking a turning point for OPEC’s influence.

In mid-1972, several northeastern states filed a court challenge to the legality of the import quotas, highlighting the regional disparities in oil availability and cost within the United States.

In late 1972, President Nixon relaxed the oil import quotas, indicating a significant policy change in response to the challenges and pressures related to oil imports.

The Emergency Highway Energy Conservation Act was signed into law to address the fuel shortages and reduce energy consumption during the 1973 oil crisis.

The Emergency Daylight Saving Time Energy Conservation Act of 1973 was implemented to save energy during the 1973 oil crisis by extending daylight saving time.

On May 1, 1973, the oil quotas were finally ended by executive order. This decision marked a significant shift in the management of oil supply and demand.

On July 1, 1973, the U.S. ends its import quota, impacting the international oil market.

The Yom Kippur War, also known as the 1973 Arab-Israeli War, was a surprise attack launched by Egypt and Syria against Israel on the holiest Jewish holiday. Israel was caught unprepared, leading to a massive intelligence failure and a desperate plea for arms from the United States.

The 1973 Oil Crisis was a combination of three crises - the Arab-Israeli War, the OAPEC oil embargo, and the energy crisis. The crisis led to a significant increase in oil prices and had a profound impact on global energy security and the economy.

Arab oil producers cut production by 5% and instituted an oil embargo against Israel's allies: the United States, the Netherlands, Rhodesia, South Africa, and Portugal.

Following President Nixon’s request for Congress to provide emergency aid to Israel for the Yom Kippur War, OAPEC imposed an oil embargo on the United States, leading to a series of production cuts and a significant increase in the world price of oil.

King Faisal of Saudi Arabia retaliated by placing a total embargo on oil shipments to the United States, to be joined by all of the other oil-producing Arab states except Iraq and Libya.

During a summit in Cairo on November 6, 1973, Henry Kissinger asked Anwar Sadat about King Faisal, which is a significant event during the 1973 oil crisis.

Nixon called for Project Independence to make the United States self-sufficient in energy by 1980, leading to a massive investment in the nuclear industry. However, the nuclear program faced debates and challenges, including underestimated costs and the issue of storing spent nuclear rods.

On November 8, 1973, Henry Kissinger became the first Secretary of State to meet with a Saudi leader since 1953 as he met King Faisal to ask him to end the oil embargo.

The Arab embargo on oil exports was extended to Portugal, Rhodesia, and South Africa, further impacting the global economy.

On December 11, 1973, the Japanese Foreign Minister Masayoshi Ōhira flew in to Riyadh to meet King Faisal for talks on improving bilateral relations.

On January 24, 1974, the Shah of Iran, Mohammad Reza Pahlavi, met with the British Chancellor of Exchequer and the Trade Secretary to make an agreement for oil sales and exchange of goods.

On March 18, 1974, Arab oil ministers agree to end the embargo on the condition that the United States promotes Israeli-Syrian disengagement, marking a significant development in the aftermath of the 1973 oil crisis.

The Energy Policy and Conservation Act, introduced by the U.S. Congress on December 22, 1975, focused on energy policy and conservation measures in response to the oil crisis. It aimed to reduce energy consumption and promote energy efficiency.

The Carter administration organizes energy agencies into the Department of Energy, focusing mainly on conservation.

During the late 1970s, energy conservation measures were being implemented in industrial countries, with the aim of significantly reducing oil consumption. This was a response to the higher oil prices and the need to address energy sustainability.

On 20 November 1979, Islam's most holiest shrine, the Grand Mosque of Mecca, was seized by a group of fanatics, leading to a fundamentalist backlash in Saudi Arabia.

In 1980, the unity of OPEC began to crack as individual members started cheating on the cartel by increasing their oil output and selling more than their OPEC quota in an attempt to boost their national revenues.

The publication 'Storm Clouds on the Horizon: Labor Market Crisis and Industrial Policy' by Barry Bluestone in 1984 sheds light on the labor market crisis and industrial policy, offering insights into the economic challenges faced during that time, including those related to the oil industry.

The lower oil prices of the 1980s along with cutbacks and the belief that the FLN regime was corrupt helped cause the riots of October 1988 against the FLN regime that killed at least 500 people.

The first free elections in Algeria in January 1992 were won by the Islamist FIS, which led to a military coup and an outbreak of civil war that was to kill hundreds of thousands.

A commemoration by the US Energy Information Administration marking the 25th anniversary of the 1973 Oil Embargo, highlighting its significance in the energy history.

An article in The Guardian featuring the personal account of Sheikh Ahmed Zaki Yamani, the former oil minister of Saudi Arabia, about the 1973 energy crisis.

An article written by Hakes, Jay in the Journal of Energy Security reflecting on the impact of the Arab Oil Embargo 35 years after it occurred.

In March, OPEC chose to maintain production ceilings despite increasing prices, instead of decreasing production to boost prices further. This decision brought relief to oil-importing nations.

OPEC's meeting in October is anticipated with great interest, particularly as oil prices have recently experienced a decline.