OPEC Embargo's Long Legacy

In October of 1973, Arab oil producing nations imposed an oil embargo on the United States because of its support of Israel after unexpected attacks by Egypt and Syria.  Since some effects of the embargo could be offset by juggling deliveries to the importing countries, the boycott also included a production cut of 20 percent -- the real guts of the â??the oil weapon.â?

 

The boycott came as a shock to American drivers who had little awareness of their growing dependence on oil from the volatile Persian Gulf and who by early in 1974 faced fuel shortages and gasoline lines around the country.  Thirty-five years later, the Arab oil embargo is still regarded as a major milestone in U.S. energy history.

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