Energy Crisis Of 1974 Research Paper

The Energy Crisis of 1974 During the end of 1973 through the beginning of 1975 Organization of Petroleum Exporting Countries (OPEC) slowed down oil production, and placed an embargo on the United States and the Netherlands. Before the crisis, OPEC was offering oil to the world at a decent price, however the end of the Arab-Israeli war changed that. After the war OPEC raised prices for Europeans, and even placed an embargo on oil being sent to the Netherlands and the United States. This embargo forced Americans to purchase European cars, which helped the economy of Europe. Eventually OPEC was forced to lower their prices and lift the embargo. During the 1974 Energy Crisis countries stopped relying on oil from OPEC, which stated the decline of OPEC’s power over the world economy.
In October of 1973, OPEC raised the posted oil price 70% because they had gotten so much power after the Arab-Israeli War (Organization of Petroleum Exporting Countries 1). During the war, the United States and the Netherlands aided Israel by giving them money, but the day after the money was given to Israel, OPEC placed the embargo banning oil from being sent to both of the countries (Arab-Israel War (1973) 2). In the years to come oil costs rose even more. Eventually oil became 400% above the price in September of 1973. This change caused chaos in the European economy (OPEC Oil Embargo 1). This economic change caused living costs to rise 10% making it hard for people to pay for essential