Editing OPEC (section)

===1973–1974: Oil embargo===
{{Main|1973 oil crisis}}
[[File:GASOLINE SHORTAGE HIT THE STATE OF OREGON IN THE FALL OF 1973 BY MIDDAY GASOLINE WAS BECOMING UNAVAILABLE ALONG... - NARA - 555405.jpg|thumb|alt=refer to caption|An undersupplied US gasoline station, closed during the oil embargo in 1973]]
The oil market was tight in the early 1970s, which reduced the risks for OPEC members in nationalising their oil production. One of the major fears for OPEC members was that nationalisation would cause a steep decline in the price of oil. This prompted a wave of nationalisations in countries such as Libya, Algeria, Iraq, Nigeria, Saudi Arabia and Venezuela. With greater control over oil production decisions and amid high oil prices, OPEC members unilaterally raised oil prices in 1973, prompting the 1973 oil crisis.{{sfn|Colgan|2021|loc=The Rise of OPEC, pp. 79–85}}

In October 1973, the [[Organization of Arab Petroleum Exporting Countries|Organisation of Arab Petroleum Exporting Countries]] (OAPEC, consisting of the Arab majority of OPEC plus Egypt and Syria) declared significant production cuts and an oil [[embargo]] against the United States and other industrialized nations that supported Israel in the [[Yom Kippur War]].<ref>{{Cite journal|last=Kumins|first=Lawrence|date=1975|title=Oil and the Economy|journal=Energy Shock|page=189}}</ref><ref name="Maugeri2006" /> A [[1967 Oil Embargo|previous embargo attempt]] was largely ineffective in response to the [[Six-Day War]] in 1967.<ref>{{cite book |url=https://history.state.gov/historicaldocuments/frus1964-68v34/d266 |publisher=US Department of State |title=Foreign Relations of the United States, 1964–1968, Vol. XXXIV: Energy Diplomacy and Global Issues, Document 266 |date=1999 |access-date=28 April 2016 |archive-url=https://web.archive.org/web/20160604103018/https://history.state.gov/historicaldocuments/frus1964-68v34/d266 |archive-date=4 June 2016 |url-status=live }}</ref> However, in 1973, the result was a sharp rise in oil prices and OPEC revenues, from US$3/bbl to US$12/bbl, and an emergency period of energy [[rationing]], intensified by panic reactions, a declining trend in US oil production, currency devaluations,<ref name="Maugeri2006">{{cite book |first=Leonardo |last=Maugeri |title=The Age of Oil: The Mythology, History, and Future of the World's Most Controversial Resource |url=https://books.google.com/books?id=JWmx5uKA6gIC |date=2006 |publisher=Greenwood Publishing Group |isbn=978-0-275-99008-4 |pages=112–116 |access-date=20 June 2015 |archive-url=https://web.archive.org/web/20160501230353/https://books.google.com/books?id=JWmx5uKA6gIC&printsec=frontcover |archive-date=1 May 2016 |url-status=live }}</ref> and a lengthy UK coal-miners dispute. For a time, the UK imposed an emergency [[Three-Day Week|three-day workweek]].<ref>{{cite web |title=British Economics and Trade Union politics 1973–1974 |url=http://www.nationalarchives.gov.uk/releases/2005/nyo/politics.htm |publisher=The National Archives (UK) |date=January 2005 |access-date=29 December 2015 |archive-url=https://web.archive.org/web/20070609060809/http://www.nationalarchives.gov.uk/releases/2005/nyo/politics.htm |archive-date=9 June 2007 |url-status=live }}</ref> Seven European nations banned non-essential Sunday driving.<ref>{{cite news |url=http://archives.chicagotribune.com/1973/11/26/page/7/article/europe-car-ban-becoming-a-real-traffic-stopper |title=Europe car ban becoming a real traffic stopper |newspaper=Chicago Tribune |date=26 November 1973 |access-date=6 January 2016 |archive-url=https://web.archive.org/web/20160219093149/http://archives.chicagotribune.com/1973/11/26/page/7/article/europe-car-ban-becoming-a-real-traffic-stopper/ |archive-date=19 February 2016 |url-status=live }}</ref> US gas stations limited the amount of petrol that could be dispensed, closed on Sundays, and restricted the days when petrol could be purchased, based on number plate numbers.<ref>{{cite book |title=How We Got Here: The '70s |last=Frum |first=David |author-link=David Frum |year=2000 |publisher=[[Basic Books]] |isbn=978-0-465-04195-4 |pages=[https://archive.org/details/howwegothere70sd00frum/page/313 313–318] |url=https://archive.org/details/howwegothere70sd00frum/page/313 }}</ref><ref>{{cite magazine |url=http://www.time.com/time/magazine/article/0,9171,942763,00.html |title=Gas Fever: Happiness Is a Full Tank |magazine=Time |date=18 February 1974 |access-date=30 December 2015 |archive-url=https://web.archive.org/web/20100922191457/http://www.time.com/time/magazine/article/0,9171,942763,00.html |archive-date=22 September 2010 }}</ref> Even after the embargo ended in March 1974, following intense diplomatic activity, prices continued to rise. The world experienced a [[1973–1975 recession|global economic recession]], with [[stagflation|unemployment and inflation surging simultaneously]], steep declines in stock and bond prices, major shifts in [[trade balance]]s and [[petrodollar recycling|petrodollar flows]], and a dramatic end to the [[Post–World War II economic expansion|post-WWII economic boom]].<ref>{{cite book |first=Robert |last=Skidelsky |title=Keynes: The Return of the Master |year=2009 |pages=[https://archive.org/details/keynesreturnofma0000skid/page/116 116–126] |isbn=978-1-84614-258-1 |publisher=Allen Lane |title-link=Keynes: The Return of the Master }}</ref><ref>{{cite book |last=Masouros |first=Pavlos E. |title=Corporate Law and Economic Stagnation: How Shareholder Value and Short-Termism Contribute to the Decline of the Western Economies |publisher=Eleven International Publishing |year=2013 |pages=60–62}}</ref>

[[File:Women Uses Her Home Fireplace for Heat. A Newspaper Headline before Her Tells of the Community's Lack of Heating Oil 10-1973 (4271701391).jpg|thumb|alt=refer to caption|A woman uses wood in a fireplace for heat. A newspaper headline in the foreground shows a story regarding a lack of heating oil in the community.]]
The 1973–1974 oil embargo had lasting effects on the United States and other industrialized nations, which established the [[International Energy Agency]] in response, as well as national [[Global strategic petroleum reserves|emergency stockpiles]] designed to withstand months of future supply disruptions. Oil [[Energy conservation|conservation]] efforts included lower speed limits on highways, smaller and more [[Efficient energy use|energy-efficient]] cars and appliances, year-round [[daylight saving time]], reduced usage of [[HVAC|heating and air-conditioning]], better [[building insulation]], increased support of [[mass transit]], and greater emphasis on [[coal]], [[natural gas]], [[ethanol fuel|ethanol]], [[nuclear power|nuclear]] and other [[alternative energy]] sources. These long-term efforts became effective enough that US oil consumption rose only 11 percent during 1980–2014, while [[real GDP]] rose 150 percent. But in the 1970s, OPEC nations demonstrated convincingly that their oil could be used as both a political and economic weapon against other nations, at least in the short term.<ref name="Maugeri2006"/><ref>{{cite web |url=http://www.history.com/topics/energy-crisis |title=Energy Crisis (1970s) |publisher=[[The History Channel]] |year=2010 |access-date=25 December 2015 |archive-url=https://web.archive.org/web/20160624152753/http://www.history.com/topics/energy-crisis |archive-date=24 June 2016 |url-status=live }}</ref><ref>{{cite web |url=http://www.envirothonpa.org/documents/The1973OilCrisis.pdf |title=The 1973 Oil Crisis |publisher=Pennsylvania Envirothon |first=Sarah |last=Horton |date=October 2000 |access-date=16 February 2013 |archive-url=https://web.archive.org/web/20120711030710/http://www.envirothonpa.org/documents/The1973OilCrisis.pdf |archive-date=11 July 2012 |url-status=live }}</ref><ref>{{cite journal |url=http://www.socialismtoday.org/51/opec.html |title=Oil Shock: The role of OPEC |journal=Socialism Today |issue=51 |date=October 2000 |access-date=30 November 2014 |archive-url=https://web.archive.org/web/20150216024014/http://www.socialismtoday.org/51/opec.html |archive-date=16 February 2015 |url-status=live }}</ref><ref>{{cite news |url=http://nationalinterest.org/feature/twilight-the-petrostate-16235?page=show |title=Twilight of the Petrostate |first1=Petr |last1=Aven |first2=Vladimir |last2=Nazarov |first3=Samvel |last3=Lazaryan |journal=The National Interest |date=17 May 2016 |access-date=2 June 2016 |archive-url=https://web.archive.org/web/20160522201053/http://nationalinterest.org/feature/twilight-the-petrostate-16235?page=show |archive-date=22 May 2016 |url-status=live }}</ref>

The embargo also meant that a section of the [[Non-Aligned Movement]] saw power as a source of hope for their [[developing countries]]. The Algerian president [[Houari Boumédiène]] expressed this hope in a speech at the UN's sixth Special Session, in April 1974:

{{blockquote|The OPEC action is really the first illustration and at the same time the most concrete and most spectacular illustration of the importance of raw material prices for our countries, the vital need for the producing countries to operate the levers of price control, and lastly, the great possibilities of a union of raw material producing countries. This action should be viewed by the developing countries as an example and a source of hope.<ref>Tony Smith, Configurations of Power in North-South Relations since 1945. ''Industrial Organisation'' 31:1 (Winter 1977) p. 4</ref>}}