The 1970’s

Energy Crisis

By the start of the 1970’s, the environmental movement had gained significant momentum in the United States. Earth Day grabbed the attention of millions on April 22, 1970. "Environmentalism" emerged as a broad term addressing common concerns over crucial issues that affected all forms of life on earth. The growth of the movement during the 1970's was partially spurred by the radical protests of the 1960’s, an era which questioned many of the trends in American society, from materialism, to imperialism, to violence, to racism. Most appropriate of these ideas, in terms of our project, was the consumption habits of many Americans and the relation of those habits to the natural environment.

The Energy Crisis of the 1970’s powerfully illustrated this pairing of environmentalism with concerns over resource scarcity. At once, quality of life was inseparable from natural resource degradation, and environmentalism became more of a health-related term. On top of this, the effects that the crisis embedded into history elicited serious questioning of our perspectives toward natural resources in the United States. Furthermore, the “crisis” triggered great developments in the way of alternative energy forms. It was during these years that many new alternative sources we know today were pioneered, and new legislation supported research and development, as well as installation, of these systems. For this reason, the crisis was a catalyst for positive change, both in perceptions and in priorities. Undoubtedly, these new ideas instigated new debates over the role of government as well as the order of priorities, and these debates still linger today. For this reason, understanding the 1970’s oil crisis will allow us to better understand the debates that we face today over energy sources worldwide. 

Background

• U.S. oil consumption was high in the early 1970’s, while U.S. oil production declined
• In 1973, 36% of energy consumption was in foreign oil, while in 1970 it had been 22%
• The Nixon administration was in office, the Watergate scandal was at its height in 1973, providing limited strength in policy formulation, and little potential for an effective response to the oil embargo
• Arab-Israeli conflicts had already produced a growing tension between U.S. and Arab countries
• The OPEC (Organization of Petroleum Exporting Countries) cartel led to rising gas prices in early 1970's 

As many people will remember, 1973 brought widespread panic to the nation, with the onset of an international oil embargo. Middle Eastern countries, wrought with long standing religious and political conflict, cut off exports of petroleum to many Western Nations, including the United States and the Netherlands, in anger over their involvement in the Arab-Israeli conflicts. The resounding impact in the United States of this embargo was compounded by weak national policies on energy issues, as well as generally high consumption levels and panic-stricken investors. Therefore, oil prices skyrocketed, the term “Mideast Oil Crisis” was born, and the effects gained momentum. Lines at gas stations increased, and people were quick to blame the government, the gas companies, the Arabs, and the embargo in general. Clearly though, many more forces were involved with the resulting “crisis” in the United States.

Brief History

Negotiations following World War II created a Zionist state, Israel, as a place for Jews after the war. Israel proclaimed independence in 1948, claiming land from the British-controlled territory known as "Palestine". The settlement was controversial and has produced a long-standing conflict that continues today. The controversy resulted from the fact that the Jews agreed to the resolution but the local Arabs refused to acknowledge the Israeli State. The Arabs then initiated numerous attacks on Israel in the year 1949. We now refer to this eruption of violence as the "Suez-Sinai War."

As the conflicts continued and grew charged with opposition on each side, the international interest in the problem inflated and other countries began to actively take sides, creating alliances that still exist today, and these alliances are largely what spurred the onset of the embargo in 1973. For example, the United States allied with Israel, against the Arab forces in Palestine. Arab forces united against Israel, and the Soviet Union backed the Arabs with technology. With Western countries like Britain, France and the Netherlands on Israel’s side as well, the conflict naturally grew to an enormous scale, and the Arabs responded in 1973 with a revolt against Western powers in the oil embargo.

It is important to emphasize that the energy crisis in the United States cannot be explained simply as the result of the political alliances. The 1973 oil crisis did not wholly cause the energy crisis, though it is important to understand its impact and its catalyzing component. Actually, many sources emphasize that the actual “crisis” in the United States stemmed more from our own domestic political and social circumstances than any single event that might have occurred overseas.

Facts And Statistics From The Embargo Years

• Imports of oil to the U.S. dropped from 6 million in September 1973 to 5 million in subsequent months
• By December 1973, the price per barrel rose 130%
• Nov. 27, 1973 Nixon signed the Emergency Petroleum Allocation Act, embracing government regulation
• 'Project Independence' was created in hopes of freeing the U.S. completely from foreign oil dependence by 1980
• The Federal Energy Office was created in December of 1973, as part of the Executive Office of the President, gaining responsibility over fuel allocation, rationing, prices, and 'Project Independence'
• The embargo itself lasted six months, ending on March 18, 1974
• Ford assumes presidency in 1974 during a period of great tension surrounding Watergate
• The Federal Energy Administration was created in June of 1974

What Were The Causes?

• Many people believe that consumption was the root cause of the energy crisis
• The crisis was essentially one of control: the result of over-consumption on top of flawed energy policies.
• U.S. policy flaws were recognized as a major cause of the crisis
• The Arab oil embargo alone was not the cause

And the Effects...

• U.S. attitudes toward the sources of energy changed drastically
• Similarly, an incredible anxiety toward the supply of natural resources grew in the United States
• Such national fear of the dependence on foreign oil resulted in the federal approval of the Trans-Alaska Pipeline in 1973, in order to capitalize on domestic oil
• Prices for gas rose significantly, longer lines appeared at the filling stations, and fear of OPEC’s control over the economy grew quickly
• Gas stations shut down because of shortages
• Gas “eating” cars became undesirable, and many Americans turned to buy smaller European and Japanese cars
• Carpooling and mass transit became popular topics
• Cheap imported oil was recognized as vulnerable and oil in general was acknowledged as unrenewable
• Market forces as well as government intervention resolved the crisis
• People began to consider the causes of environmental degradation and not just the effects
• Long term scarcity instilled questioning of resource exploitation

New Policies and Changing Ideas

• Oil price decontrol became a central policy issue
• A major debate was born, should the government control production and consumption or should the market forces take over?
• Carter administration takes a new perspective and emphasizes deregulation of the energy idustry
• Carter moved the nation to a greater understanding of energy problems
• But foreign dependency on oil was still increasing, domestic production decreasing, and fuel costs were still high
• 1974 (after Nixon resigned) Congress passed the Geothermal Energy Research, Development and Demonstration Act , as well as the Solar Heating and Cooling Demonstration Act
• Carter also passed the Solar Energy Research, Development, and Demonstration Act and Federal Non-Nuclear Energy Research and Development Act
• National Energy Act was passed in 1978, including conservation incentives and taxes, and limits for the use of oil and gas in electrical generation
• Natural Gas Policy Act passed soon after, giving the government a stronger role in regulation, and also raising prices of natural gas
• Department of Energy created in 1977 to bring cabinet-level order to divided efforts
• Carter suggests less driving, and less use of heat
• Carter also called for a tax to help subsidize mass transit, and support energy assistance funds (Windfall Tax Act of 1980)

The Move Towards

Alternative Energy Sources

• The importance of funding research and experimentation became clear
• Tax incentives developed under the Carter administration
• MORE AWARENESS AND EXPLORATION OF ALTERNATIVES
  • solar energy (commercial, solar thermal conversion, photovoltaic cells)
  • wind power
  • tidal power
  • ocean thermal conversion
  • biomass
  • geothermal energy
  • conversion of coal into gas
  • extraction of oil from tar sands
  • efforts at tertiary recovery from oil deposits
• Debates grew over the technical feasibility and economic viability of these new alternative energy sources

Some Conclusions,

and...

Our Project

As part of everyday life in the 1970’s, most Americans had to face the fact that energy sources like oil were limited and not always readily available. Those who experienced long lines at gas stations and higher prices for oil learned more about the sources of their energy. These experiences often led people to choose more economical solutions and their personal choices often included alternative energy use. Furthermore, the philosophical motivation to use less fossil fuel became much more enticing, with direct experience as proof of the impact of over-consumption. The shortage of oil resources during the 1973 embargo, when placed into the context of a grounded and growing environmental awareness, profoundly changed the way in which people in the United States perceived energy.

Our project has uncovered numerous local stories of alternative energy use, from individual, to residential, to commercial levels. The case studies provided in our resource will illustrate the various motivations for these specific lifestyle changes. Not all of them were “environmentally” motivated. In fact, and much to our surprise, many of these decisions were implemented to save money. That surprising fact alone has proven these case studies extremely valuable to people around Vermont, New England, and other comparable climates, so that they too may incorporate more use of alternative energy sources in their own lives.

 

 

 

Sources.

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