1973

The 1973 oil embargo offers striking parallels to modern energy crises. When OPEC members proclaimed an oil embargo in October 1973, targeting nations that supported Israel during the Yom Kippur War, they fundamentally altered the global economic order.

The Shock

Oil prices quadrupled almost overnight, jumping from $3 per barrel to nearly $12. The effects rippled through every sector of the economy:

• Gas stations ran dry across America
• Speed limits were lowered to conserve fuel
• The “energy crisis” entered the American vocabulary

Lasting Consequences

The embargo accelerated several long-term trends:

1. Energy independence became a political priority
2. Fuel efficiency standards were introduced for automobiles
3. Alternative energy research received its first significant government funding

The crisis demonstrated how dependent industrial economies had become on a single resource controlled by a small group of nations.

Nixon’s resignation in August 1974 came at a moment when multiple crises were converging. The Watergate scandal, while politically devastating, unfolded against a backdrop of economic turmoil and geopolitical realignment.

The Convergence

Several major events clustered around 1973-1974:

• The oil embargo (October 1973)
• The Saturday Night Massacre (October 1973)
• Nixon’s resignation (August 1974)
• The fall of Saigon (April 1975)

Was this timing coincidental, or did these crises feed into each other? The economic stress from the oil shock may have reduced Americans’ tolerance for political scandal.

A Weakened Presidency

By the time Ford took office, the presidency itself had been diminished. The combination of Vietnam, Watergate, and economic malaise created what would later be called the “crisis of confidence” that plagued the late 1970s.

Source: Robert Putnam, The Upswing.

Most likely due to the end of the Vietnam War draft in 1973, and little need for deferment.