Oil Crisis : An Essential Element Of Our Modern Community

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Oil is an essential element to our modern community. People need oil to fill up their tanks for their car, light up their light bulbs at home, and much more. Most of the world’s oil have got imported from the Middle East, in Arab countries. The oil crisis has led America on the road of not depending on other countries imported goods, and try to create their own with their own resources, this is one reason why America is the top economy country in this world. In American history, Americans recognize three oil crisis, or energy crisis, which happened in the years of 1973,1979, and 1990. The first oil crisis, which is in October 1973, begin with an announcement by the members of Organization of Arab Petroleum Exporting Countries…show more content…
By the end of the embargo in March 1974, the price of oil had risen from three dollars per barrel to nearly twelve dollars per barrel globally. During the oil crisis, U.S. industrial production fell by fourteen percent, Japan’s industrial production fell by more than twenty percent. Economic growth of industrialized countries have slowed down significantly, thus triggered the most serious global economic crisis after World War II. Even though the oil embargo ended on March 18, 1974, but high gasoline prices and the energy crisis continued through the early 1980s. The long lines that are going long, gas prices that are going up caused by the oil crisis have raised the issue of decreasing America’s reliance on other countries for oils. Congress approved the Trans-Alaska pipeline system on November 13, 1973, this system is for America to drill for domestic oil in Alaska. By mid-1970s, the price dropped to fourteen to fifteen dollars per barrel. Western economies that have got effected this adjusted to the high price levels that have occurred, (Rudolph Jr.) . Followed by the 1973 oil crisis, there is the 1979 energy. From late 1978 to 1979 in early March , Iran paused oil exports to foreign countries for 60 days, this made the oil market have a shortage of 500 million barrels of oil a day. This is
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