22 Replies to “40th Anniversary – Arab Oil Embargo”

  1. yeah, i remember when gas went from like $.35/gal to like $.80/gal, and everybody freaked right the fuck out. somehow or another, i never waited in a gas line.

  2. I want to say this was pretty much the end of 25 cent draft beers and nickel bags, right as I was on the verge of discovering them.

  3. as a newbie grad student in hawaii, i wisely sold my schwinn 10-speed, bought a 1970 BMW 2002, moved up a ridge to co-rent a house with some roommates (nice view of diamond head). all set for party time, except suddenly, no gas. i recall coasting down the hill in neutral (dangerous, of course) to line up at the gas station at the bottom for my 2 bucks ration of gas on odd-even plate days. life was beginning to suck.

  4. today, JP Morgan-Chase was fined $13 Billion for morgage fraud prior to the 2008 crash. when i read a headline like that, i think, it’s a small fraction of the amount that was defrauded and a slap on the wrist of pure power. those elites sure must think the rest of us are chumps, and correctly, i’m sure.

  5. “….[James] Akins correctly predicted a coming oil embargo, saying that OPEC countries could not spend as much money as they were getting for their oil, and had realized that “oil in the ground is as good as oil in the bank.” In an influential article in the journal Foreign Affairs in April 1973, Akins correctly predicted that world oil consumption for the next 12 years would exceed that of all previous human history, and warned that the loss of production from any two Middle Eastern countries would push prices from $3 a barrel to more than $5. In fact, they reached $39.50. Akins was promoted from director of fuels and energy at the U.S. State Department to U.S. ambassador to Saudi Arabia in September, 1973, one month before the 1973 Oil Crisis began.”

    http://en.wikipedia.org/wiki/James_Akins

  6. The embargo happened under Nixon, but a year later Gerald Ford would take on the implications of it all. He presided over the worst economic conditions in U.S. in four decades, i.e. since the Great Depression.

  7. wow, $3 to $5 a barrel. now it’s $4 a gallon for gasoline most places in the western US. so, doing some high math, that’s 35 gallons per oil barrel, or 35 times higher now for a refined gallon of gas than for an equivalent volume of crude oil back then.

    I’m sure that almost perfectly equates with price inflation, as the real currency is energy, and oil is king of all energy in use today.

    continuing this random thought pattern, crude is about $100 per barrel today. 100/4 = 25 times higher today than back then. refining costs must make up the additional factor of 10.

  8. Ford lost to Carter mainly because he pardoned Nixon. of course, presiding over a poor economy didn’t help, as did his notoriously poor golf tee shots into the gallery.

  9. yeah, look for a 3000 pt DOW and flash return to 1890s economy in 2014, on our way to a world made by hand.

    humm…. depending upon where the hand was used, we may already live in a world made by hand.

  10. First frost tomorrow night.
    First ice on my favorite fishing lake will be Xmas eve day.
    First person to catch a keeper perch or lake trout should be me.

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