1970s: Oil Crisis

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1970s Oil Crisis
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Stagflation

• Combination of soaring prices, the high
  unemployment, and low economic growth.

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Oil Embargo

• Egypt and Syria attacks Israel
• The US airlifted supplies to Israel
• OPEC (Organization of Petroleum Exporting
  Countries) to impose an oil embargo against
  Israel's allies that lasted until March 18, 1974.

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Oil Crisis Begins

• The oil embargo led to increased prices for all
  types of fuel, including gasoline, home-heating
  fuel, and electricity.
• Prices for everything else rose in response to
  high energy costs, causing record inflation.

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U.S. Response

• Price of gas quadrupled in just a few months
• Many gas stations ran out of gas
• Drivers waited for up to two hours for gas
• License plates ending in odd numbers could fill
  up on odd days
• License plates with even numbers could fill up on
  even days

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Coping with the Energy Crisis

• Jimmy Carters response
• Americans were asked to
• reduce air travel
• conserve oil
• turn down thermostats by 6 degrees
• reduce highway speed limits (55 mph ) to conserve
  energy
• urged the use of coal and nuclear power rather
  than the limited commodity of oil.

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Question

• How would your life change if your family was
  rationed to 10 gallons of gas/week?