Opec Oil Embargo

Topics: Petroleum, United Arab Emirates, Saudi Arabia Pages: 1 (281 words) Published: November 15, 2010
OPEC Oil Embargo
The Organization of Petroleum Exporting Countries (OPEC) was created in 1960 with the idea of unifying and protecting the interests of petroleum-producing countries. The members of this organization include: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, The United Arab Emirates, Algeria, and Nigeria. Their goal was to slowly take over the function of the companies, at least in production, and then increase the amount of revenues they could retain. Despite that, their impact, their impact on the world was very little, but, that all changed because of the Arab-Israeli War of 1973. OPEC charged an embargo on oil shipments to all the countries that supported Israeli. In the United States, this embargo caused daily shipments of 1.2 million barrels to be reduced to 19,000 barrels.

Furthermore, people who owned vehicles faced long lines at the gas station, and were forced to pay up to $10.00 for a gallon of gas. This caused fear and panic to arise because citizens were suddenly with a shortage of oil, which before they took for granted. President Nixon had put controls on the conservation of oil such as the ban on the sale of gasoline on Sundays, lowering thermostats, and for companies to trim work hours. As the embargo started effecting the organization itself because of a decrease in demand for oil, they lifted the embargo at the end of 1974. The effect of this embargo is that it, temporarily promoted conservation efforts such as a national speed limit of 55 mph, which lowered traffic related deaths. A station in Detroit with no gas to give in the midst of the OPEC Oil Embargo.
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