After World War II the energy consumption in the United States skyrocketed. The main causes of increased energy expenditure were infrastructure projects, including the Eisenhower Interstate System, and side effects of veterans returning home, including demand for new jobs (Tverberg). In the middle of 1973, before the embargo, the United States had low domestic reserves and had to import about 27 percent of the crude petroleum it needed every year. In other words, the United States was dependent on foreign oil imports from countries it had little control over and poor relations with (OPEC States). The Energy Crisis, that consisted of an oil embargo and price hikes, highlighted American dependence on foreign oil and caused rapid, wide-spread panic to surge through the nation in 1973 and again in 1979. The fear that resulted from the Energy Crisis was irrational, the United States had ways to produce energy domestically, but the panic that ensued in the 1970s project to the world that we were completely dependent on foreign oil, giving immense power to members of the Organization of Petroleum Exporting Countries (OPEC) and other oil-producing countries. In order to regain oil independence the United States passed legislation to conserve energy. The legislation that resulted from the the Energy Crisis and the consumer demand for fuel efficient automobiles gave American automobile manufactures the impetus they needed to increase fuel economy. Between 1958 and 1969, pro-Arab governments were installed in oil-producing Middle Eastern states, namely Iraq, Algeria, and Libya. At the same time, the "Seven Sisters," seven predominantly American, oil-producing companies that controlled much of the international oil trade for the previous fi... ... middle of paper ... ...on in the 1970s and Beyond.” The Competitive Status of the U.S. Auto Industry: A Study of the Influences of Technology in Determining International Industrial Competitive Advantage. Washington, D.C.: National Academy, 1982. 133-49. Print. Tverberg, Gail. "World Energy Consumption Since 1820 in Charts." Our Finite World. N.p., 12 Mar. 12. Web. 11 June 2014. . United States. U.S. Department of Transportation, U.S. Department of Energy, and U.S. Environmental Protection Agency. Effects of the Alternative Motor Fuels Act CAFE Incentives Policy. National Highway Traffic Safety Administration, Mar. 2002. Web. 09 June 2014. . Wilbur, W Allan. OPEC Oil Price Hikes. Washington: Congressional Quarterly, 1980. Print.
...nd eventually morph it into what it has become modernly. The industry is transformed over time into a cut-throat game of international relations. The United States specifically becomes overwhelmed with the amount of public relations that are involved. In many cases, the country has much more pull in the affairs than that of the United States’ interests. As a result, President Eisenhower imposes mandatory quotas which protect domestic oil and stabilize the price of U.S. oil.
Energy Crisis (1970’s) states that the crisis officially began when the “Organization of Arab Petroleum Exporting Countries (OAPEC) reduced their petroleum production and proclaimed an embargo on oil shipments to the United States and the Netherlands, the main supporters of Israel.” They did this because of the United States providing support to Israel during the Yom Kippur War (Energy Crisis (1970’s)). Although it “ended in late October, the embargo and limitations on oil production continued, sparking an international energy crisis” (Energy Crisis (1970’s)). The United States presumed that a boycott would damage the Persian Gulf financially, however, because of the rise in the price of oil, it actually helped them (Energy Crisis (1970’s)). The price of oil actually shot from $3 a barrel to $12 a barrel. (Energy Crisis (1970’s)). This produced tremendous lines at gas stations, exorbitant gas prices, and people were told not to put up Christmas lights. Other countries that were affected could only heat one room in the winter (Energy Crisis (1970’s)). The American auto manufactures were injured as well while they were turning out large vehicles, whereas Japanese manufacturers produced tiny fuel- efficient autos (Energy Crisis (1970’s)).
Carter’s main attempt to resolve the energy crisis came in the form of a national energy program that moved to conserve oil and promote alternative energy sources like coal and renewable energy sources. The President convinced Congress to form the Department of Energy, and pleaded with Americans to control their energy consumption. Oil companies however insisted on more deregulation of the energy industry. In order to prevent oil companies from taking advantage of the American consumer he ...
Arguments: America is dependent on other nations for their ability to create energy. The United States is the world’s largest consumer of oil, at 18.49 million barrels of oil per day. And it will continue to be that way for the foreseeable future, considering the next largest customer of oil only consumes about 60% of what the U.S. does. This makes the U.S. vulnerable to any instability that may arise in the energy industry. In 2011, the world’s top three oil companies were Saudi Aramco (12%), National Iranian Oil Company (5%), and China National Petroleum Corp (4%).
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
Since there were no fuel economy standards established by the government until 1975, the fuel efficiency of automobiles steadily declined. In the early 1970’s, the average American vehicle got less than 13 miles per gallon. However, in 1973, the Organization of Petroleum Exporting countries placed an embargo on all the oil that was sent to the United States as a way to get retaliation for America’s support of Israel in the Six Days’ War. The long lines and gas rationing that this embargo initiated made many Americans realize how dependent they were on foreign oil. The thought that they reli...
Aside from national security interests domestic thirst for oil boomed. The war brought us out of the Great Depression. During the Depression a traditionally capitalist American society embraced a kind of socialism with the New Deal. WWII transformed the bear turned in a raging bull. Capitalism was back with a vengeance, charging forward stronger than it had ever been before. The heavy industry built up to sustain the war effort was retooled to meet the demands of the emerging consumerist culture of the 1950s. The new explosion of industrial output became so pervasive that the decade ended with President Eisenhower warning of the dangers of the growing “Military-Industrial Complex.”
Model T’s were everywhere in America, even long after Ford stopped production in 1927. (Henry) While Ford was the number one brand, selling the most cars throughout the early 1900’s, the Model T created a new industry that is distinctly American; the auto industry. Three manufacturers, Ford, General Motors, and Chrysler dominated the American auto industry, and all three companies still produce cars today. The Model T gave birth to the competitive auto market. To this day, car companies in America are constantly racing to innovate, improve, and outsell their competitors. Manufacturing of cars “became the backbone of a new consumer goods-oriented society. By the mid-1920s it ranked first in value of product, and in 1982 it provided one out of every six jobs in the United States.” (history –idk yet) The demand for cars also resulted in a booming petroleum industry, and a high demand for metals, like steel. ( History idk yet) Furthermore, with so many people driving cars, construction of roads was necessary. The popularity of automobiles set off a chain reaction that created new opportunities all across the country. All sections of the modern automotive industry, from marketing to manufacturing, as well industries like petroleum refining, steel production, and road construction, can trace their beginnings to the Ford Model
Currently, the most important factor in the rise of gas prices is the increasing cost of crude oil. Unfortunately, the United States has three percent of the world’s oil reserves. (Horsley) In 2009, the United States was third in crude oil production as well as the world’s largest petroleum consumer. (e. I. Administration) Such consumption required and still requires the United States to import petroleum/crude oil from other countries.
Shafer, Leah R. "Address on the Energy Crisis (15 July 1979)." Dictionary of American History. Ed. Stanley I. Kutler. 3rd ed. Vol. 9. New York: Charles Scribner's Sons, 2003. 492-94. U.S. History in Context. Web. 18 Apr. 2014.
Ford’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.
The year is 2200. The world is going through a fossil fuel shortage. Oil reserves are almost completely consumed and it is becoming impossible to find new fossil fuel sources. Not prepared for this event to occur, The United States, has no alternative options. As a result of the oil shortage, the standard of living deteriorates. Heat in homes, supermarkets full of food, and transportation, all basic necessities taken for granted, will be depleted because fossil fuels are used to power almost everything. The key to the prevention of this future is renewable energy. Unfortunately the support for the use of renewable energy is weak and ineffective. Unless the US puts forth effort to research and promote the use of renewable energy to consumers, conversion from fossil fuels to renewable energy will no longer be an option.
This paper takes a look at the ways in which the ideas of Fordism and Taylorism helped the success of the U.S motor vehicle industry. The motor vehicle industry has changed the fundamental ideas on the process of manufacturing and probably more expressively on how humans work together to create value.
March 17, 2014. Hinrichs, Roger ; Kleinbach, Merlin. Energy, Its Use and the Environment. 2013. The. Print.
(4) Abel, Ivan, Maali Ashamalla, and Robert Camp. Competitiveness of the US Automotive Industry: Past, Present, and Future. Rep. 2nd ed. Vol. 10. Indiana: American Society for Competitiveness, 2010. Print.