OIL CRISIS

a situation beginning in 1973, where oil and gasoline prices were caused to escalate rapidly, bringing about a rise in energy costs and prices of other raw materials. The stated cause of the oil price increases was a shortage of oil from Arab nations. However, oil companies reported an increase of 80 percent in profits in 1974 over 1973. —Intro to Scn Ethics Glossary (app. 14.7.90)

a shortage of oil occurring in the United States and certain European countries beginning in the early 1970s. This shortage was caused mainly by restrictions placed on oil trade by the Organization of Petroleum Exporting Countries (OPEC). This organization regulates the amount of oil produced by its member countries (mostly from the Middle East), and sets the prices for export of this oil. The restrictions were intended to punish the United States and some of its allies for supporting Israel in a conflict the Arabs had with the Israelis in 1973. This situation caused panic in oil companies, consumers and some governments, with a severe shortage of gasoline occurring in the US as well as extremely inflated prices for the import of oil. The crisis continued at varying levels through the 1970s, and by 1980 oil prices were 10 times those of 1973. By the early 1990s, however, prices had reduced to a level comparable with the 1973 prices.a shortage of oil occurring in the United States and certain European countries beginning in the early 1970s. This shortage was caused mainly by restrictions placed on oil trade by the Organization of Petroleum Exporting Countries (OPEC). This organization regulates the amount of oil produced by its member countries (mostly from the Middle East), and sets the prices for its export. The restrictions were intended to punish the United States and some of its allies for supporting Israel in a conflict the Arabs had with the Israelis in 1973. This situation caused panic in oil companies, consumers and some governments, with a severe shortage of gasoline occurring in the US as well as extremely inflated prices for the import of oil. The crisis continued at varying levels through the 1970s, and by 1980 oil prices were 10 times those of 1973.a situation beginning in 1973, where oil and gasoline prices were caused to escalate rapidly, bringing about a rise in energy costs and prices of other raw materials. The stated cause of the oil price increases was a shortage of oil from Arab nations. However, oil companies reported an increase of 80 percent in profits in 1974 over 1973.