Abstract
Fuelled by the protests that marred the 1979 Iranian Revolution, the 1979 Energy Crisis was caused a decline in oil production in Iran. The attack Iran by Iraq under the leadership of Saddam Hussein worsened the situation. Attack of Iran by Iraq almost brought to a halt oil production in Iran. The attack also causes a severe reduction in oil supply by Iraq. The 1979 Energy Crisis had a colossal impact on both the oil producing and oil consuming states. Nonetheless, the oil-consuming states such as the United States were more affected. The reaction of the populations affected by the crisis were characterized by the rush to buy the limited supplies. In addition, various strategies aimed at containing the crisis were initiated by the government of the affected states. The consequences of the 1979 Energy crisis are still rife with us today as it is evident by a state of high inflation, which was primarily elicited by the crisis.
Introduction
Elicited by the Iranian Revolution, the 1979 Energy Crisis that rocked the world, especially the United States and the Middle East occurs as one of the widely discussed topics across various societal contexts. Often connoted the 1979 “oil shock,” the mentioned crisis was further compounded by emergence of the Iran-Iraq War. Worth noting is the fact that Iran was the main oil producer; hence, the Iranian revolution, as well as the Iran-Iraq war resulted in an abrupt decline in Iranian oil production. This was evident by the fact that Iranian oil production declined from 5.8 million barrels per day to 445,000 per day (Horowitz 24). The 1979 Energy Crisis was characterized by the skyrocketing of oil prices and the curtailment of oil supplies. This posed dire implications on consumers, producers, as well as the oil industry. In a nutshell, the 1979 Energy Crisis sparked varied reactions from both the United States and Middle Eastern populations. Similarly, various strategies were devised to address the crisis whose effects are still felt today.
Protests
A close analysis of the Iranian Revolution that paved way for the 1979 Energy Crisis shows that it was characterized by intense protests against the then Iranian Shah Mohammad Reza Pahlavi. The protests were meant to overthrow the Iranian president for the support he had for the United States. The protests are deemed one of the most comprehensive factors that elicited the 1979 Energy Crisis. Precisely, the protests caused severe disruption of the Iranian Oil Industry. In fact, the protests led to the decreased oil production by the Iranian Oil Industry, and this led to the eventual suspension of oil exports. This had a detrimental impact on oil-consuming states such as the United States. Overall, the protests emanating from the 1979 Iranian Revolution was the main factor that prompted the occurrence of the 1979 Energy Crisis (Gibson 33).
Reaction
As aforementioned herein, the 1979 Energy Crisis posed dire implications on the oil industry. Similarly, oil producing states, especially the Middle Eastern states, as well as the oil consuming states, particularly the United States were affected by the crisis. Even so, there is a need to comprehend the fact that the oil consuming states were affected more than the oil producing states. Overall, populations from various parts of the globe affected by the 1979 Energy crisis reacted differently. With regards to the manner in which the United States was affected, it is of the essence to note that the United States comprises of oil-consuming regions and oil-producing regions (Newton 29). Therefore, the manner in which people in the respective regions of the United States were affected were different. Deductively, the 1979 Energy Crisis had mixed impacts on the United States. Nonetheless, the reaction of the United States populations to the crisis was relatively similar.
The reaction of the United States populations to the 1979 Energy Crisis was demonstrated by long queues at the gas stations as the United States citizens scrambled for the limited oil supplies. Precisely, the eminent threat of gasoline rationing precipitated a repeat of long lines at gas stations, which was evident during the 1973-74 oil crisis period. Certainly, the memories of the 1973 oil shortage were still fresh amongst the Americans. As such, reaction to the eminent energy shortage elicited by the Iranian revolution made American motorist begin panic buying of remaining fuel supplies. The invasion of Iran by Iraq under the reign of Saddam Hussein worsened the oil situation. In fact, this invasion almost brought to a halt oil production in Iran, and Iraq’s supplies were severely cut too (Horowitz 11). This precipitated the soaring high of gasoline prices, which eventually plunged the United States into a recession.
As a result of the recession, which was elicited by the ensuing oil crisis, the inflation rate doubled in the United States and the confidence of the United States consumers was severely dented. The automotive industry of the United States was severely affected as the American citizens reacted to the crisis by opting for Japanese gas-sipping small cars, than the U.S. made gas-guzzling large cars (Newton 6). This meant that domestic car dealers in the United States registered losses due to diminished sales. While it is true the Middle Eastern populations were affected by the 1979 energy crisis, it is of the essence to note that there were minimal reactions from the Middle Eastern populations. This is accredited to the fact that the crisis did not pose dire effects on these populations. In fact, some of the Middle Eastern populations, especially the OPEC member states such as Saudi Arabia benefited from the crisis in they increased their production.
Counter Movements
Evidently, various strategies aimed at addressing the 1979 oil crisis were developed. Politicians from various parts of the United States proposed a wider array of strategies that were aimed at addressing the shortage. As an example, Maryland’s governor proposed an odd-even gas rationing strategy, whereby persons with odd-numbered license plates would purchase gasoline on odd days and those with even-numbered plates could purchase on even days. This strategy was adopted, but it did not last for long. Another strategy that was initiated in order to address the 1979 oil crisis was energy conservation. This strategy was proposed by President Jimmy Carter, who proposed the use of solar systems and wood stoves as a means of conserving energy (Gibson 87). This strategy was adopted, but it was repealed during Reagan’s reign. Removal of price controls was another strategy that was used to counter the oil crisis, which was adopted by Richard Nixon’s administration. Overall, the 1979 energy crisis promoted the U.S. government to consider the creation of initiatives aimed at eliminating the dependence on fossil fuels.
How it affects us today
The above discussion depicts the manner in which oil remains a cruces energy source across various states. The 1979 crisis resulted in a wider array of implications that are still felt in the modern day American. As an example, the United States automotive industry is still struggling to counter the Japanese competitors who have and continue to produce more fuel efficient automotive, which are preferred by the American citizens. Furthermore, the recession, and high inflation rate prompted by the crisis still affects is today. Due to the high inflation rate that was caused by the crisis, the interest rates continue to be high despite the fact that the crisis ended long time ago. In conclusion, the 1979 Energy Crisis has and continue to precipitate a number implications on the United States populations.
Work Cited
Gibson, Donald. Wealth, Power, and the Crisis of Laissez Faire Capitalism. Basingstoke: Palgrave Macmillan, 2011. Internet resource.
Horowitz, Daniel. The Anxieties of Affluence: Critiques of American Consumer Culture, 1939- 1979. Amherst: University of Massachusetts Press, 2004. Print.
Newton, David E. World Energy Crisis: a Reference Handbook. ABC-CLIO, LLC, 2012. Print.
