...The 1973 Oil Crisis By Sarah Horton In October of 1973 Middle-eastern OPEC nations stopped exports to the US and other western nations. They meant to punish the western nations that supported Israel, their foe, in the Yom Kippur War, but they also realized the strong influence that they had on the world through oil. One of the many results of the embargo was higher oil prices all throughout the western world, particularly in America. The embargo forced America to consider many things about energy, such as the cost and supply, which up to 1973 no one had worried about (Spiegelman). In order to understand the main cause of the oil crisis one must first know the history of the region and the ArabIsraeli conflict. World War II a Zionist state, known as Israel, was created on 56% of the land that was formerly known as Palestine. This state served as a homeland for Jews. The local Arabs were enraged by the fact that the Palestinian land had been taken to create this state. They refused to acknowledge Israel as an independent state. The Arabs began to launch efforts to recapture the land that they felt was rightfully theirs. This created the Suez-Sinai War. The British and the French sided with the Israelis in order to punish Nasser for nationalizing the Suez Canal. The strong Israeli military forces quickly defeated the Arabs. The Arabs responded to this defeat by uniting. In 1967 Israel launched the Six-Day War, claiming much land. In 1973 Arab forces retaliated. On Yom...
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...Being that the 1973 Oil Embargo was a major crisis that changed the way we consume energy today, it was surprisingly difficult to find a “lessons learned” report on the incident. I Google searched terms such as “1973 Oil Embargo lessons learned report”, “1973 Oil Crisis policy outcomes”, “1973 Oil Embargo aftermath”, and “1973 Oil Crisis synopsis”. I also searched the Department of Energy’s website for reports on the embargo and found relatively little information. It was not until I emailed you for help that I found documentation on the policy outcomes and reports on the 1973 Oil Embargo event (also known as the Arab Oil Embargo). The report I am using to analyze the crisis is from the Federal Energy Administration written in 1980 by Roger Anders. The report summarizes the outcomes resulting from the 1973 Oil Embargo—specifically, the establishment of the Federal Energy Administration, The Energy Policy and Conservation Act, The Energy Conservation and Production Act, and...
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...third Arab Israeli war known as the six-day war of 1963, which Egypt lost the territory of Gaza, Jordan lost west Jerusalem, and Syria ended up surrendering over Golan Heights. In 1967 after the six-day war tension between the countries and Israel’s size had doubled. The war ended on the sixth day by a United Nations-brokered ceasefire on June 10th, 1967. Fast forward to 1970 and Anwar el-Sadat is the new president of Egypt during an economical trough due to continuing conflicts against Israel. President Anwar Sadat surprisingly wanted peace with Israel and said “Let there be no more war or bloodshed between Arabs and Israelis. Let there be no more suffering or denial of rights....
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...World War II through the 1970s Miguel A. Jarquin HIS 105 Professor Simmons August 25, 2013 World War II through the 1970s Major historical turning points World War II one of the most devastating event in human history. It cost the lives of millions of people. During World War II through the 1970s, there were many major historical turning points. (Ganzel, 2010) “October 24, 1945 the United Nations was established. It was the second multipurpose international organization created in the 20th century. The United States, United Kingdom and the Soviet Union took direction in designing, structure and decision making of the new organization”(P.1). With a worldwide membership and scope, the purpose of the United Nations was to maintain security and peace among countries, as well as working on developing friendly relations. According to the United Nations Charter, it aims: “to save succeeding generations from the scourge of war to reaffirm faith in fundamental human rights to establish conditions under which justice and respect for the obligations arising from treaties and other sources of international law can be maintained, and to promote social progress and better standards of life in larger freedom.” Another turning point was the creation of The North Atlantic Treaty Organization also known as NATO was established by military alliance on April 4, 1949. Its quest was to develop a counterweight to Soviet armies. (Ganzel, 2010) “Original NATO members were Belgium...
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...Syria and Egypt, the United States via President Richard Nixon was helping Israel defend their boarders and people by supplying them with arms. This in turn caused an outrage within the Organization of Arab Petroleum Exporting Countries (OAPEC) which in turn placed an embargo on oil exports upon the United States because of the aid and arms that the United States was supplying Israel. This embargo caused fuel shortages such as gasoline which in turn caused fuel prices to soar throughout much of the 1970s. This was further amplified due to the decline of domestic oil production and the reliance on imported oil from abroad. It only took three months for the embargo to cause massive change in the United States. Not only did the embargo hurt the automotive industry but also everyone who used highways as a speed limit of a mere fifty five miles a hour was imposed to help curtail the consumption of fuel. Other methods of fuel consumption management were used such as having fueling stations closed on certain days of the week as well as limiting what people could do to their homes. One interesting fact to note was that the price of crude oil quadrupled in less than six months. This stemmed from a massive decline in crude production in the OAPEC countries that we imported most of our oil from. So in conclusion the energy crisis of the 1970s can be looked at in somewhat of a positive way. It expanded other countries automotive markets into the United States as well as starting to prompt...
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...with the prisoners of war, awareness that soldiers were being “tortured and placed in solitary confinement” (Zaretsky 26) made US citizens realize that their military power in Southeast Asia was close to non-existent. The total defeat of the Vietnam War produced a sense of panic and distrust in the United States’ military and government amongst citizens. Another issue that falls into the category of national problems during the seventies is the OPEC oil embargo against the United States in 1973. The embargo was declared on October 18th of 1973 and ended in March of 1974. Major Arab oil-producing nations created this in retaliation for the American backing of Israel during the October War. To make matters worse for America at this time, the embargo also occurred while the Vietnam War was still in action. This made Nixon, who was President at the time, and his foreign policy teams realize that they were in dire need to form a foreign policy that fit the United States’ new position in the world. It can be noted that this embargo hit home domestically when it is reported in “No Direction Home”, that the “middle class home emerged as one crucial site where the meanings of American restraint and limitations could be assessed” (Zaretsky 73). National affairs in the US also took a major hit when the Hostage Crisis transpired while Jimmy Carter was President. In November of 1979, a group of Iranian students took over the U.S. embassy in Tehran and seized its diplomatic staff hostage...
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...Daniel Sebagh Dr. Armiger Response paper #2 4/26/12 Oil Crisis in the 1970’s The Oil Crisis of the 1970’s was a major period in American history, when a number of political, global and social events came together to create a ‘perfect storm’. The Seventies was an era filled with people seeking self-fulfillment (The ‘Me’ Decade), where the nation was growing at a fast pace. People, during this time, concentrated on their own leisure and happiness. Behind the narcissism and selfishness of many people’s attitudes, an oil crisis struck America which largely impacted the automobile industry and led to a rise in gas prices. The combination of stagnant growth and price inflation during this era raises many issues, while many attempts to end the crisis, such as Jimmy Carter’s Energy plan, substantially made it worse. These problems caused Americans to focus more on economic issues versus social issues. The “Me Decade,” a term coined by novelist Tom Wolfe, was a concept of the Seventies- “an era of narcissism, selfishness, personal rather than political awareness… The ‘70’s was the decade in which people put emphasis on the skin, on the surface, rather than on the roof of things… It was the decade in which image became preeminent because nothing deeper was going on (Schulman, 145).” It described the new American self-awareness and the collective retreat from history, community and human reciprocity. Compared to the 1960’s, Americans in the 1970’s were self-absorbed and passive;...
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...deregulated through the Airline Deregulation Act. And even though this movement started in the US airline market it started to spread through European countries when the European commission proposed the deregulation in 19842. This would later result in less involvement of governments in policies of airline businesses. Oil Embargo in 1973–1974 As a result of the Arab-Israeli War in 1973, the US government decided to re-supply the Israeli military in its war against Arab countries. Consequently, Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an embargo against the United States, which was extended to other European countries that supported the Israeli government. This embargo resulted in the ban of petroleum exports to those countries and introduced cuts in oil production.1 Economic Recession in North Atlantic in the mid-1970s Problems in the North Atlantic corridor in the 1970s led to a recession, which affected the demand on transatlantic routes regardless of promotional fares. This recession lead to losses for airline companies that relied heavily on revenues resulting from transporting passengers through those routes. The First Oil...
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... The following year, he opened his own electric power company in New York City. His company, Edison Electric Illuminating Co., was the first large electric company to supply power to thousands of businesses and homes. By the end of the 19th century, more than 3,600 electric utilities had sprung up across the United States. Some were privately owned, while others were publicly funded and built. The growth of the automobile industry in the early 20th century created a demand for oil, and in 1916, the U.S. government began...
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...dependent on oil to what extent do you agree with this statement. As Fossil Fuels Dominate the Global energy situation, oil provides 34.8% of the world’s Energy being the number one source of energy in 4 out of 6 regions, especially in the Middle East with 50% and is also the number one extractor and exporter of oil. Oil Dependency is when a country is in need of oil to be able to function properly and without oil, it may crumble. Oil is the biggest single source of the world's energy. In the short-term vital public services like ambulances, fire-engines and public transport are all put in jeopardy when fuel supplies run low. The U.S. is the largest consumer of oil in the world, burning through 18.83 million barrels per day. Even if the U.S. produced all petroleum products domestically, Americans would still feel the shocks from market volatility. Oil is a global market, and market prices prevail regardless of origin. Despite policies to improve vehicle efficiency, America remains dependent on oil. This dependency presents several problems, especially in the long term. And it has happened before, The 1973 oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries proclaimed an oil embargo in response to American involvement in the 1973 Yom Kippur War. The US supplied Israel with arms. In response to this, OAPEC announced an oil embargo against Canada, Japan, the Netherlands, the United Kingdom and the US. The embargo occurred at...
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...brief history of oil politics 3. Oil Politics and U.S. Militarism in the Middle East 4. Wars and disputes for oil 5. Oil and the Iraq War 6. Conclusion Introduction: The modern era of oil production began on August 27, 1859, when Edwin L. Drake drilled the first successful oil well 69 feet deep near Titusville in northwestern Pennsylvania. Just five years earlier, the invention of the kerosene lamp had ignited intense demand for oil. By drilling an oil well, Drake had hoped to meet the growing demand for oil for lighting and industrial lubrication. Drake's success inspired hundreds of small companies to explore for oil. In 1860, world oil production reached 500,000 barrels; by the 1870s production soared to 20 million barrels annually. In 1879, the first oil well was drilled in California; and in 1887, in Texas. But as production boomed, prices fell and oil industry profits declined. The energy source, which made the Industrial Revolution possible in England in the 18th century, was coal. Coal powered the steam engines which drove machinery in the factories, and the steamboats and railroads of the early industrial age. It has continued to power electric generation plants throughout the 19th and 20th centuries. Among the fossil fuels, coal is the most abundant in the earth, but it is also the most polluting. High sulphur and carbon content, and soot, cause coal to be the least desirable of the fossil fuels. A brief history of oil politics: Oil or petroleum...
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...Instruction on the Group Project Principles of Management Each project group is expected to collectively write a case report that focuses on an ethical issue faced by a real-life organization, a specific industry, or a business profession. Following is a suggested outline for the case written by your group: I) Background Information (e.g., corporate history) II) The Central Ethical Dilemma(s) III) Alternative Ways to Deal With the Ethical Dilemma(s) IV) Possible Consequences and Implications of Alternative Solutions V) Ethical Theories That Are Applicable to This Case VI) Key Questions for Case Study When writing this case report, you are encouraged to gather as much relevant information as possible from various online and offline data sources. However, all the information used in your case analysis must be properly cited in the main body of your report, including the author name(s) and publishing date/year, if available, and the detailed citations must be included in the References section. Your case report will be graded on the following criteria: 1) Proper application of ethical theories 2) Quality of writing (readability, originality, grammatical correctness, etc.) 3) Breadth of information utilized (at least 20 different articles or books need be cited and actually used in writing this case) 4) Demonstrated critical thinking skills 5) Robust logical reasoning 6) Comprehensive data analysis (i.e. taking into...
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...Energy 15 August 2015 The Prize: Epic Quest for Oil, Money, and Power The history of the petroleum industry is a long and enduring journey. It was not started by one single individual, but by the actions of a long list of entrepreneurial figures whom all play a part in this oil journey. Oil was first used as a sort of home remedy by the Indians. They called it “Seneca Oil” and it was used to cure headaches, upset stomachs, burns, to heal wounds and the list goes on. George Bissell was a very important individual in the creation of the oil industry. He spotted a bottle of this Pennsylvania rock oil in one of his professor’s classrooms. He became very curious with the rock oil and believed that it could be used as an illuminant because it was flammable. If this rock oil could become the new illuminating oil, Bissell would become an extremely wealthy man and that became his motivation. In 1854, Bissell gathered investors and hired a professor from Yale, Benjamin Silliman, to analyze all the properties of this oil to determine if it could indeed be used as an illuminant and lubricant. Sure enough, the research proved that rock oil was the next big illuminant and Pennsylvania Rock Oil Company was created in 1854. However it was not a breeze to get this oil. Edwin Drake, a retired railway conductor, was tasked to use his salt techniques to find oil. In spring of 1859, Drake’s driller who was called “Uncle Billy” spotted oil floating at the top of a pipe. This moment was the...
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...The United States Foreign Policy with Israel and the Effects on the Middle East Michael Hanners Axia College of University of Phoenix The United States' support of Israel started immediately after Israel's declaration of independence in 1948, both financially and with military arms. With other Middle Eastern countries being Arab, and Israel being Jewish, there has been a religiously motivated conflict in this region of the world for more than 60 years. Many Middle Eastern countries have not nor do they believe that Israel has a right to exist. This has been a problem for the United States since its recognition of Israel. Why is this region of the world so important to the United States? The majority of the worlds oil supply comes from this region. Peace in this region is a must for the United States, however; since most Arab countries do not recognize Israel’s right to exist; it puts the United States in the sensitive position. The United States is Israel’s biggest supporter, when the United States changes policy with Israel; it puts other Middle Eastern countries in a state of uncertainty. What is now considered the Middle East; was once known as the Ottoman Empire. The Ottoman Empire was created by Turkish tribes in Anatolia. As one of the most powerful states in the world, the empire spanned more than 600 years and came to an end only in 1922 after WW I. The Empire was replaced by states in southeastern Europe and the Middle East. At its height...
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...POLS 3447 Final Study Guide * Part 1 * 80 fill-in the blanks (30% and 10 possible extra credits points) * 30 from review sheet * Part 2 – Pick one out of 2 questions * Arab-Israeli conflict up to 1947 * Persian security, with the CIA intervention from 1950-1953 to the Gulf war in the 1990s * Part 3 – Essay * Challenges facing obama admin in middle east in second term * Persian gulf security * War on terror * Arab Israeli * How has it evolved since 1990 * Countries who voted NO to Palestine being a non-voting observer state at the United Nations * Canada * Czeck Republic * Marshall Islands * Micronesia * Palau * Nauru * Panama * Obama’s policy has been called “leading from behind” * Multi-dimensional approach * Trying to find consensus * Criticism * Pro: being smart considering the volatility of the Middle East * Con: not using America’s power effectively * Obama’s address in Cairo – 2009 1-6. In 1950 the government of Iranian Prime Minister Mossadegh nationalized the AIPOC (Anglo-Iranian Persian Oil Company) owned and operated by Great Britain. The Eisenhower administration finally decided to take action owing to the perceived growing threat of communism in Iran and in August 1953 launched Operation Ajax to overthrow Iran’s democratically elected government. Many observers believe this...
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