Energy Crisis

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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.

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