First, in october 1973, the arabisraeli conflict prompted a group of arab oil producers the organization of arab petroleum exporting countries to institute a selective embargo on oil exports. Second arab oil embargo, 1973 1974 the second arab oil embargo, which lasted from october 1973 to march 1974, posed a major threat to the u. The great crash, the oil price shock and the unit root hypothesis pdf. The united states had long taken cheap and plentiful oil for granted when saudi arabia shocked the country by suddenly cutting off all direct oil shipments in. Even though britain was excluded from the list of embargoed nations, the impact of the embargo for the british economy, especially the fear of insufficient energy in the industrial sector, was real.
The economical effects of the 1973 oil embargo the arab oil embargo of 1973 had dramatic effects on international. Pdf opec organization of petroleum exporting countries. Was the oil weapon effective in achieving the arab states goals in 197374. First oil shock impact on the japanese economy sciencedirect. One of the main reasons for its success is the fact that oil reserves are not evenly distributed among nations. The 1973 oil crisis began in october 1973 when the members of the organization of arab. On 17 october 1973, opec enacted the oil embargo as a response to an uptick in israeli fortunes against syria and egypt. Which statement explains why the 1973 opec oil embargo had. Result this effectively shut down exports to the us. In october of 1973, members of the organization of arab petroleum exporting countriesor opecplaced an oil embargo against the united states and many of its nato allies. Opec oil embargo of 1973on october 17, 1973, arab oil producers declared anembargo that drastically limited the shipment of oil to theunited states opecembargo. Gerald ford was nominated to serve as vice president under nixon on oct. Arab oil producing countries wished to pressure the western countries, specifically america into demanding that israel withdraw their troops from the.
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. Recalling the oil shock of 40 years ago resources for the future. The new policy was multifaceted and incremental in nature. Morse oday marks the 30th anniversary of the arab oil boycott, and the quadru of oil prices, which revolutionized the energy business. History high school documentary project including interviews with governor michael dukakis, congressman barney frank, secretary of energy charles dun. Energy resources and use brown major reference works. Since the arab oil embargo of 1973 1974, a growing number of geographers have applied their disciplinary skills to examining the spatial distribution of energy resources and use. The arab oil embargo and united states pressure against chile. Making the 1973 oil crisis columbia blogs columbia university.
It lasted about six months and resulted in an oil crisis, with prices rising and sporadic shortages of gasoline. The 1973 oil crisis began in october 1973 when the members of the organization of arab petroleum exporting countries proclaimed an oil embargo. As there was very little spare capacity production in the. Moreover, the nixon administrations efforts to address the effects of the embargo ultimately presented the united states with many foreign policy challenges. Apr 07, 2010 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 term the arab oil weapon means the use of this resource by the. The year 1973 brought the opecintroduced embargo during the israeliarab conflict, concerning all oil importing countries supporting israel. Prices remained at higher levels even after the embargo ended in march 1974. The old rules no longer apply leon mill spraypaints a sign outside his phillips 66 station in perkasie, pa.
Arab oil embargo has illustrated this point since 1967 when oil was first brought into play as a weapon for achieving political aims. The oil embargo following the arabisrael war of october 1973. 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. These two acts the embargo and cutbacks are called the oil weapon. For the threeyear period between 1974 and 1977, the federal energy administration implemented federal oil allocation and pricing regulations. The arab oilproducing states impose an embargo against nations supporting israel in the fourth arabisraeli war, also known as the october war. 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. Dec 28, 2014 in october 1973 the arab branch of the organisation of petroleum exporting countries opec initially raised the price of its oil exports by 70 percent, implemented production cutbacks, and imposed a selective embargo against major oil consuming states in the global north prashad 2012.
Riyadh has no intention of repeating 1973 oil embargo. Jul 17, 2018 this paper analyzes the british economic experience and reaction towards the arab oil embargo following the october war of 1973. Geographical analysis of the costs and benefits of alternative energy policies has also grown in scope and sophistication. October 2003 marked the 30thanniversary of the arab oil embargo levied against the. For the main arab producers, the embargo allowed them to show to the arab street that they. Moreover, the nixon administrations efforts to address the effects of the embargo ultimately presented. The arab members of opec responsible for the 1973 oil crisis inadvertently gave the rest of the world a lifesaving head start in the struggle to avoid, or at least mitigate, the threat of catastrophic climate change. Oapeq stated that the 19731974 oil embargo was designed to force israel to return the territory captured in 1967, alter the status of jerusalem, and restore the.
View essay economic oil crisis effects from poli sci 1201 at temple university. The 1973 oil crisis is a direct consequence of the us production peak in late 1960 and the beginning of 1971 and shortages, especially for heating oil, started from there. An independent agency, the federal energy administration was the successor of the federal energy office, a shortterm organization created to coordinate the governments response to the arab oil embargo. Oct 24, 20 in response to the oil embargo, nixon instituted additional price controls and began rationing oil to states. The arab oil embargo was the first oil crisis, an oil supply disruption leading to major price increases and a. The 1970s arab opec oil embargo and latin america stephen j. According to its initiators, the purpose of the 197374 arab oil weapon was to force changes in the policies of states toward the. How runaway inflation, arab oil embargo savaged the dow in. How the 1973 oil embargo saved the planet foreign affairs. The 1973 oil crisis by sarah horton pennsylvania envirothon.
Scholars viewed this at the time as a watershed in history, as oil power was translated into political power and signified the growing dependence of the global north on arab oil for its capitalist development graf 2012. Sep 05, 2015 tag 1973 arab oil embargo posted september 5, 2015 1 comment on 1976 cadillac seville. 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 oil embargo of 1973 on october 17, 1973, arab oil producers declared anembargo that drastically limited the shipment of oil to theunited states opec embargo. 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 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. The 19731974 oil crisis has been called a textbook case of the law of supply and. Trade issues what happened in 1973 to cause opec organization of petroleum exporting countries to cut off the flow of oil to the u s. Was the oil weapon effective in achieving the arab states. During the 1973 arabisraeli war, arab members of the organization of petroleum exporting countries opec imposed an embargo against the united states in retaliation for the u. The arab oil embargo caused gas shortages nationwide and shaped u. However, the effects of the arab oil embargo are clearit effectively doubled the real price of crude oil at the refinery level, and caused massive. This was meant to punish the western states that had supplies weapons and aid to israel the arab oil embargo of 1973 74. The fallout from the opec oil embargo of 197374 was extensive. On the afternoon of october 6, israel was attacked simultaneously on two fronts by egypt and syria. The graph is based on the nominal, not real, price of oil, and so overstates prices at the end. The lasting impact of the 1973 oil embargo financial sense.
Oct 16, 20 the arab oil embargo caused gas shortages nationwide and shaped u. Nations around the world were targeted, most of which experienced dramatic economic and geopolitical strain. Israel illegally occupied palestinian territories in 1973 that lead to opec placing an oil embargo on israel with. Download 6page thesis on oil embargo in 1973 by oapec 2020. On october 6, 1973, egyptian and syrian troops attacked israel in an attempt to regain the land. The penalty of leadership as the standard of the world turns 1976 cadillac seville. An essay about the arab oil embargo in 1973 and economic. The oil embargo was imposed by the arab members of the organization of petroleum exporting states oapec on the united states and several other countries that supported israel during the 1973 yom kippuroctober war. Nixons 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. Mar 21, 2014 in october 1973, opec member nations began an oil embargo that crippled much of the global economy, frayed the western worlds social fabric and exposed mankinds utter dependence on one limited. The arab oil embargo and united states pressure against. The arab oil embargo the arab oil embargo was one of the most successful weapons introduced into world politics during the last years. On october 19, 1973, the 12 opec members agreed to the embargo.
Was the oil weapon effective in achieving the arab. The arab members of opec responsible for the 1973 oil crisis inadvertently gave the rest of the world a lifesaving head start in the struggle to. This dramatic move was retaliation against the west for their military support of israel in the ongoing yom kippur war. The energy crisis and the arab oil embargoes of 1973 and 1979 print opec was formed in 1960, largely as a way for governments of oilproducing nations to capture oil revenues that, at the time, were going to foreign producing firms.
This dramatic move was retaliation against the west for their military support of. As explained by nixon, israel needed military assistance to. Hongtu zhao, in the economics and politics of chinas energy security transition, 2019. Randall frsc director latin american research centre university of calgary in october 1973 in retaliation for u. Naturally, everyones first thought in this context would be of the 1973 arab oil embargo that followed israels victory in yet another war and that unveiled the wests heavy dependence on. A video montage of the culprits and victims waiting in long lines. In october 1973, the organisation of petroleum exporting countries opec imposed an oil embargo on municipalities perceived to be supporters of israel during the yom kippur war. Yom kippur war, also called the october war, the ramadan war, or the fourth arab israeli war, damaging inconclusive war and the fourth of the arab israeli wars. For many americans, saudi arabia was the symbol of the wealthy arab monarchies that were inflicting so much pain on the u. The second arab oil embargo, which lasted from october 1973 to march 1974, posed a major threat to the u. In this essay i will provide a historical narrative of the 1973 oapec oil embargo. How the 1973 oil embargo still affects us energy agenda.
Photo by ap leon mill spraypaints a sign outside his phillips 66 station in perkasie, pa. The oil crisis of 1973 concerned a worldwide deliberately created shortage of petroleum. Oil weapon effective in achieving the arab states goals in 197374. In the past few years we have become increasingly dependent on the middle east for our oil. At the start of the 1967 arab oil embargo the us reserve capacity production was sufficient, while increased oil imports from venezuela, iran and indonesia helped to replace the lost access to oil imports from oapec. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The oil embargo in 1973 shocked the world, but it resulted from special international and historical environment and contingency. The previous arab israeli war, the sixday war 1967, was followed by years of sporadic fighting, which developed into a fullscale war in 1973. The initial nations targeted were canada, japan, the netherlands, the united kingdom and the united states with the embargo also later extended to. The opec oil embargo was a decision to stop exporting oil to the united states.
Download article pdf i was a survivor of the arab oil embargo in october 1973, when the members of the organization of arab petroleum exporting countries opec proclaimed an oil embargo against nations perceived as supporting israel. In addition to such factors as the hegemony between the united states and the soviet union, the solidarity of arab world. Recalling the oil shock of 40 years ago resources for the. Aug 05, 20 in october of 1973, members of the organization of arab petroleum exporting countriesor opecplaced an oil embargo against the united states and many of its nato allies. How the 1973 oil embargo still affects us energy agenda today. Forty years later, environmentalists owe them a debt of gratitude. The war was initiated by egypt and syria on october 6, 1973, on the jewish holy day of yom kippur and during ramadan, the month of fasting in islam, and it continued until october 26. Opec organization of petroleum exporting countries. The oil embargo officially started in october 1973, when a group of middle east countries announced a 5% production cut per month as a reaction to the yom kippur war between egypt and israel or, more precisely, israels victory in that war, aided by nations such as the united states. Mar 29, 2020 the arab oil embargo, began in 1973 after the us decision to aid israel, was mostly the course of. As in the previous two arab oil embargoes, in 1956 and 1967, this embargo is. This is an amateur history channel video summarizing the events of the 1973 oil embargo, in which the organization of arab petrolium exporting.
The embargo as described below is the practical name given to the crisis. Pdf the organization of arab petroleum exporting countries oapeq stated that the 19731974 oil embargo was designed to force israel to return the. Arab oil embargo, temporary cessation of oil shipments from the middle east to the united states and the netherlands, imposed by oil producing arab countries in october 1973 in retaliation for u. With the element of surprise to their advantage, egyptian forces successfully crossed the suez canal with greater ease than expected, suffering only a. The arab oil embargo 20th century history song book.
1076 188 590 389 167 70 1298 1219 1499 81 127 1117 945 1206 989 1115 782 548 604 1155 134 871 394 50 505 357 1232 686 533 1016 1488 531 664 495 1054 1304 9 199 769 1281 415 563 203 1165 589 168 1022 1463