Oil+crisis

The beginning of a oil crisis in the united states. On October 17, 1973 OPEC( Organization of the Petroleum Exporting Countries) announces as, a result of the ongoing Yom Kippur War, that they would no longer ship oil to countries that had helped Israel in its war against Egypt and Syria. Which included the following nations: USA, its allies in western Europe, and Japan. This was a big chaos in the united states especially because oil went from $1.50 a barrel to $11.56 a barrel.

The OPEC is organization that consisted of twelve countries, that included Iran, seven other Arab countries, plus Indonesia, Nigeria, Angola, and Venezuela. OPEC has been an organization since September 14, 1960 during the Baghdad conference. The Yom Kippur war started when Egypt and Syria sent a military attacked on Israel. As a result of the United states helping Israel, the Arab states place a stoppage on oil as punishment for the U.S.

This stoppage of the OPEC on oil effected us a lot! All in all this twelve countries are responsible for 40 percent of the world oil production and hold the majority of the oil reserves. This means if OPEC stops giving us oil or decides to raise oil prices it would impact us very bad. The reason is that you got to look at the big picture. High-Price gas mean its expensive to fly in airplanes, to ship products on trucks, drive long distances, and almost any thing you can think about will raise prices.

http://en.wikipedia.org/wiki/1973_oil_crisis