The World witnessed a struggle for the control of oil in 1973, the decisions of which ultimately lead to globalization. As America saw the pace of life quicken in the twentieth century with the use of cars, planes, airplanes and appliances, the demand for oil to fuel this development increased. Believing that there was endless energy, the American way of life had an insatiable appetite for oil.
Up until 1950 the United States had been able to supply its own energy needs, but in less than 25 years it became apparent that this was no longer the case. Unfortunately, each year Americans consumed 5% more, doubling the demand for oil in 12 to 14 years, while coal production remained at 1940 levels, crude oil production dropped. During the 1950’s, …show more content…
The price of oil shot up to $11.65 a barrel from $3. Conservation of energy was needed, one seventh of the oil previously available was no longer there, Americans now faced price hikes and fuel shortages, causing long lines at gasoline stations, people were encouraged to conserve energy by turning down their heating systems and refraining from putting up holiday lights. Moreover, the energy crisis was a huge blow to the American automotive industry, which had for decades turned out bigger and bigger cars and would now be outpaced by Japanese manufacturers producing smaller and more fuel-efficient models. However, when the oil embargo was lifted in March 1974, oil prices remained high and the effects of the energy crisis lingered on. The government reacted with price controls, gasoline rationing, a 55mph speed limit and daylight savings time was adopted year-round. Furthermore, policy making in Washington took up the concept of environmentalism with the first energy policy, President Nixon’s Project Independence which stated its goal as total United States independence from foreign energy sources by 1980, through expedited licensing and construction timeline for nuclear power plants from ten years to six, a request that governors reduce highway speed limits to 50 mph; and encourage carpooling, decrease home heating oil supply by 15%; task occupants with lowering heating thermostats by at least 6 degrees (to between 66-68 F), reduce federal government's own energy consumption, decreasing fuel allocation for air travel, leading to 10% reduction on the number of flights and to convert oil-fired power plants to coal. Various other acts of legislation during the 1970s sought to redefine America’s relationship to fossil fuels and other sources of energy, from the Emergency Petroleum Allocation Act (passed by Congress in November 1973, at the height of the oil panic) to the Energy Policy and Conservation Act of 1975 and
Up until 1950 the United States had been able to supply its own energy needs, but in less than 25 years it became apparent that this was no longer the case. Unfortunately, each year Americans consumed 5% more, doubling the demand for oil in 12 to 14 years, while coal production remained at 1940 levels, crude oil production dropped. During the 1950’s, …show more content…
The price of oil shot up to $11.65 a barrel from $3. Conservation of energy was needed, one seventh of the oil previously available was no longer there, Americans now faced price hikes and fuel shortages, causing long lines at gasoline stations, people were encouraged to conserve energy by turning down their heating systems and refraining from putting up holiday lights. Moreover, the energy crisis was a huge blow to the American automotive industry, which had for decades turned out bigger and bigger cars and would now be outpaced by Japanese manufacturers producing smaller and more fuel-efficient models. However, when the oil embargo was lifted in March 1974, oil prices remained high and the effects of the energy crisis lingered on. The government reacted with price controls, gasoline rationing, a 55mph speed limit and daylight savings time was adopted year-round. Furthermore, policy making in Washington took up the concept of environmentalism with the first energy policy, President Nixon’s Project Independence which stated its goal as total United States independence from foreign energy sources by 1980, through expedited licensing and construction timeline for nuclear power plants from ten years to six, a request that governors reduce highway speed limits to 50 mph; and encourage carpooling, decrease home heating oil supply by 15%; task occupants with lowering heating thermostats by at least 6 degrees (to between 66-68 F), reduce federal government's own energy consumption, decreasing fuel allocation for air travel, leading to 10% reduction on the number of flights and to convert oil-fired power plants to coal. Various other acts of legislation during the 1970s sought to redefine America’s relationship to fossil fuels and other sources of energy, from the Emergency Petroleum Allocation Act (passed by Congress in November 1973, at the height of the oil panic) to the Energy Policy and Conservation Act of 1975 and