Partner
Money  /  Video

The Price of Oil: Lessons From a 1970s Energy Crisis

Oil shortages forced Americans to rethink consumption and set in motion decisions that continue to shape energy policy today.

Embedded video

If the video does not load or is not working, it may be a problem with the video service, or you may need to turn off an ad blocking browser extension.

When oil shortages disrupted daily life in the 1970s, Americans were forced to rethink consumption, and the crisis set in motion decisions that continue to shape energy policy today.

In the 1970s, when oil-producing nations cut supplies to the United States during the Yom Kippur War, gas stations ran dry, prices soared, and long lines became a fact of daily life. The crisis exposed how dependent the country had become on foreign oil, much of it controlled by Arab members of OPEC.

Leaders searched for answers. President Richard Nixon urged conservation and energy independence. Gerald Ford pushed efficiency. President Jimmy Carter compared the energy crisis to a war and spearheaded investments in renewable power, and even installed solar panels on the White House roof.

While policy shifted in the 1980s under Ronald Reagan, the drive to develop renewables slowed. Some of Carter’s initiatives had unexpected results, leading decades later to the widespread use of fracking, and fossil fuel production surged.

View transcript here.