Filed under: Capitalism, Economy, Energy, Foreign Policy, History, Middle East, National Security, Politics, The United States | Tags: Energy and Technology, Energy and the Middle East, The 1973 Oil Crisis
For those of us who have forgotten our history, 1973 was the year of the Yom Kippur War. Egypt and Syria launched a surprise attack on Israeli positions in territories occupied by Israel. In August, Saudi King Faisal and Egyptian president Anwar Sadat met in Riyadh and negotiated an accord whereby the Arabs would use the “oil weapon” as part of the coming military conflict.
October 6, Egypt and Syria attack Israeli-occupied lands in the Sinai Peninsula and the Golan Heights on Yom Kippur, the holiest day in the Jewish calendar. The Soviet Union acted to supply Egypt and Syria with weapons and supplies. (Notice that Russian interest in Syria is not new) October 8, Israel goes on full nuclear alert.
The United States initiates Operation Nickel Grass, a strategic airlift to provide replacement weapons and supplies to Israel. OPEC negotiations with the major oil companies to revise the 1971 Tehran price agreement fail. October 19, Congress appropriates $2.2 billion in emergency aid to Israel. Libya proclaims an embargo on oil exports to the U.S. and Saudi Arabia and other Arab states follow suit the next day. October 26, the Yom Kippur War ends in complete defeat for the Arab forces. Dissension, negotiation. Israel agrees to withdraw from the west side of the Suez Canal. Oil ministers , with the exception of Libya, announce the end of the embargo. The 1973-74 stock market crash ends.
OPEC forced the oil companies to increase payments dramatically. Price of oil quadrupled to nearly $12 U.S. per barrel. The oil exporting countries got very wealthy. Gold faucets and fancy yachts.
The U.S initiated price controls. Out of that developed the 55 mph speed limit, the Strategic Petroleum Reserve, The Department of Energy, and the National Energy Act of 1978. Ad campaign “Don’t be Fuelish,” compact cars, front wheel drive and 4-cylinder engines. Greater interest in “renewable energy.” Research in solar power and wind power. More emphasis on Mass transit. End of big cars with tail fins, welcome for the Volkswagen Beetle, rise of Japanese cars.
1978, Protests against Mohammad Reza Pahlavi Shah of Iran, wave of political unrest and violent clashes, Muslim fundamentalists seek a Muslim state, 1979, Shah leaves on vacation, never to return. One million Iranians march in support for exiled Ayatollah Khomeini. Ayatollah returns to Iran after 14 years of exile. Gasoline shortage, world oil glut. OPEC increases full 14.5 % increase in price. Iran takes western hostages. Jimmy Carter tried to rescue hostages, made a mess of it. Ronald Reagan succeeded Carter, hostages were released.
This is all more or less accurate, but perhaps gives a sense of the back and forth of cause and effect that got us where we are today, but not much sense of what to expect. The middle east still has vast oil wealth, but we are no longer dependent on their oil nor natural gas, but instead need approval to export our own plentiful supplies of oil and gas.
In the first years of the seventh century, when the Prophet Mohammad began his mission in Arabia, the whole of the Mediterranean was part of Christendom. A few decades after the death of the Prophet, his Arab followers burst out of the Arabian peninsula and attacked Persia and Byzantium. The Persian empire was conquered, then Syria, Palestine, Egypt and North Africa — and then Spain, and Sicily. It’s been going on ever since. The aim of the fanatics is to return to the pure Islam of the days of the Prophet. The aim of the West seems to be a colony on Mars.
Leave a Comment so far
Leave a comment