Editing National Energy Program (section)

===Global context===
Historically, the United States had been by far the world's largest oil producer, and the world oil market had been dominated by a small number of giant multinational (mostly-American) oil companies (the so-called "[[Seven Sisters (oil companies)|Seven Sisters]] of oil": [[Standard Oil of New Jersey]], [[Pseudonym|alias]] [[Exxon]] (US); [[Standard Oil of New York]], alias [[Mobil]] (US/UK); [[Standard Oil of California]], alias [[Chevron Corporation|Chevron]] (US), [[Gulf Oil]], now part of Chevron (US); [[Texaco]], now part of Chevron (US); [[Anglo-Persian Oil Company]], alias [[BP]] (UK); and [[Royal Dutch Shell]], alias Shell (UK/Netherlands).<ref name="MEI_1979_Amuzegar" />{{rp|9}} During the late 1940s, the 1950s, the 1960s, and the early 1970s, the discovery and development of many [[giant oil and gas fields]] outside the US by those and other companies kept the world flooded with cheap oil. Meanwhile, global demand increased to take advantage of the increased global supply at lower prices. In particular, US oil consumption increased faster than production, and the country, which had been a net oil exporter, became a major oil importer.

In 1970, US oil production unexpectedly peaked and started to decline, which caused global oil markets to tighten rapidly as the US started to import more and more Arab oil.<ref name="MEI_1979_Amuzegar">{{citation |chapter-url=http://chenry.webhost.utexas.edu/public_html/elephants/OilShock201979-Final.pdf |chapter=OPEC's Adaptation to Market Changes |last=Amuzegar |first=Jahangir |title=The 1979 "Oil Shock": Legacy, Lessons, and Lasting Reverberations |publisher=The Middle East Institute (MEI) |location=Washington, DC |pages=136 |year=1979 |access-date=26 September 2016|archive-url=https://web.archive.org/web/20150209230659/http://chenry.webhost.utexas.edu/public_html/elephants/OilShock201979-Final.pdf|archive-date=9 February 2015}}</ref>{{rp|10}} As the decade continued, global demand caught up with global supply, and two major oil price shocks occurred: the [[1973 oil crisis]] and the [[1979 oil crisis]].<ref name="Grytten">{{cite encyclopedia |first=Ola Honningdal |last=Grytten |title=The Economic History of Norway |encyclopedia=EH.Net Encyclopedia |editor-first=Robert |editor-last=Whaples |date=16 March 2008 |url=http://eh.net/encyclopedia/the-economic-history-of-norway/}}</ref> The first occurred after the [[Organization of Arab Petroleum Exporting Countries]] (OAPEC), whose membership is the Arab members of the similarly named [[Organization of Petroleum Exporting Countries]] (OPEC), plus Egypt, Syria, and Tunisia, imposed an [[embargo]] on oil exports to the US, the UK, the Netherlands, Japan, and Canada in retaliation for supporting Israel during the [[Yom Kippur War]]. US producers had been able to defeat the [[1967 oil embargo]] by ramping up domestic production and flooding the world market with additional product at cut-rate prices, but declining domestic production and the ongoing rise in global demand prevented a similar response to the 1973 Arab embargo. The result was immediate shortages and lineups for gasoline in importing countries, particularly the US, which signalled the end of decades of cheap oil and a change in the balance of power from consuming countries, which now included the United States, to producing countries.<ref name="IER">{{citation |title=Forty Years After the Oil Embargo |date=16 October 2013 |access-date=27 January 2015 |url=http://instituteforenergyresearch.org/analysis/forty-years-after-the-oil-embargo/ |publisher=Institute for Energy Research (IER) |location=Washington, DC}}</ref> On October 16, 1973, the Ministerial Committee of the Persian Gulf's OPEC membership announced an immediate rise in its posted price from $2.18 to $5.12 per [[barrel of oil]].<ref name="MEI_1979_Amuzegar" />{{rp|10}} "Thus for the first time in oil history, the producing countries assumed power to consider and set the oil price ''unilaterally'', and independently of the" Seven Sisters.<ref name="MEI_1979_Amuzegar" />{{rp|10}}

The Yom Kippur War ended in October, but the price of oil continued to increase, and by January 1974, it had quadrupled to US$12 a barrel. "The more than seven-fold increase in the oil price from $1.80/b in 1970 to $13.54/b in 1978 created profound and far-reaching changes in the world oil balance, as well as the prevailing relationships among major oil producers, principal oil importers, and the major oil companies... [and the] spectacular jump of the crude spot price to more than $US40/b following the 1979 Iranian Revolution, turned the global oil market into total disarray."<ref name="MEI_1979_Amuzegar" />{{rp|10}} The Norwegian economics historian [[Ola Honningdal Grytten]] described that period in the 1970s as one of a prolonged global recession and slow growth that affected most developed economies.<ref name="Grytten" />

The [[1979 oil crisis]], precipitated by the [[Iranian Revolution]] and compounded by the [[Iran–Iraq War]], was the second major market disturbance in the 1970s. "The curtailment of oil supplies and the skyrocketing of oil prices had far-reaching effects on producers, consumers, and the oil industry itself."{{attribution needed|date=February 2015}}<ref name="MEI_1979">{{citation |url=http://chenry.webhost.utexas.edu/public_html/elephants/OilShock201979-Final.pdf |title=The 1979 "Oil Shock": Legacy, Lessons, and Lasting Reverberations |publisher=The Middle East Institute (MEI) |location=Washington, DC |pages=136 |year=1979 |access-date=28 January 2015|archive-url=https://web.archive.org/web/20150209230659/http://chenry.webhost.utexas.edu/public_html/elephants/OilShock201979-Final.pdf|archive-date=9 February 2015}}</ref>

In his [[State of the Union Address]] in January 1980, US President [[Jimmy Carter]] described how his country's "excessive dependence on foreign oil is a clear and present danger,"<ref name="Carter" /> and he called for a "clear, comprehensive energy policy for the United States."<ref name="Carter">{{citation |url=http://www.jimmycarterlibrary.org/documents/speeches/su80jec.phtml |title=State of the Union Address |date=23 January 1980 |access-date=27 January 2015 |first=Jimmy |last=Carter}}</ref>