It was the year 1973 when the USA first realized that its energy dependency was reliant on external politics.
Israel was entangled in conflict with Middle East nations. In response to US support for Israel, OPEC nations, decided to enact an oil embargo against the USA and other nations sending support to Israel.
This had a domino effect on not only the energy market, but also the economic market at large. Oil prices rose drastically something that Americans had never seen. This set into motion a set of policies that changed the way we think of our energy infrastructure. Cars got smaller, and more gas efficient. Laws were introduced changing the way oil companies do business in the United States.
For the first time since World War II Americans experienced shortages. Not only at the gas pump, but also in food production. This all culminated in 1979 with the Iranian Revolution. As trouble began to boil over in Iran, markets reacted, quick, oil prices rose dramatically again.
This began an unprecedented drive that we still still see today. Before this energy crisis Americans really didn’t have a great desire for foreign cars. Toyota, Mitsubishi, Honda, and other foreign car company saw an opening. These companies had decades of building fuel, efficient vehicles, giving them a competitive advantage over American car companies.
Middle Eastern countries realized that they could use oil as a weapon. American interests realized this was a great threat.
Decades later, we are still entangled in this conflict. We are now more dependent on outside interests for our energy, and now are also dependent on foreign interests for our overall economy.
