Depending on where you live in the United States, you probably pay more for fuel than you'd like. Even so, this is nothing compared to the event that unfolded in 1973 known as the OPEC embargo. Also known as the oil crisis of 1973, it followed the stock market crash of 1929 as one of the earliest financial disasters in world history. For those that would like to learn more about the embargo, here are a few details shared by Robert Jain.
It's important to look at the state of America to better understand the impact of the OPEC embargo. During the late 60s to early 70s, the United States saw a growing demand for oil. After all, this was the main fuel source for everything from cars to factory machinery. The problem, however, lied in the fact that the demand simply couldn't be met at such a quick pace. This led to an oil embargo, which was put in place by the Organization of Arab Petroleum Exporting Countries in 1973.
After this embargo was proclaimed, the production of oil stopped. As you might imagine, this impacted life for everyone in different ways. Business owners, for example, didn't have sufficient power, which meant that many of them had to close their doors. Schools, hospitals, and homes couldn't stay warm, which was especially problematic during the cooler months when this embargo was in effect. Everyone suffered and names like Bob Jain would say the same.
Car owners had to be more mindful of what they traded, sold, and purchased, too. With this oil shortage, more fuel-efficient vehicles became popular, which meant that the latest Chevy might not have been the best purchase for most. In fact, it might have ended up costing the average buyer more, largely due to the surplus of fuel that such a car required. The majority of people had to stick to cars that used less fuel, since they tended to cost less in the long term.
The OPEC embargo wasn't without its merits, as it changed the ways that different nations accessed oil. For instance, the United States, which largely relied on oil overseas, started to look into sources that were either national or closer to where they were. What this meant was that they could rely less on OPEC moving forward. Nonetheless, this embargo had a sizable impact and it can be felt in many states to this day.
It's important to look at the state of America to better understand the impact of the OPEC embargo. During the late 60s to early 70s, the United States saw a growing demand for oil. After all, this was the main fuel source for everything from cars to factory machinery. The problem, however, lied in the fact that the demand simply couldn't be met at such a quick pace. This led to an oil embargo, which was put in place by the Organization of Arab Petroleum Exporting Countries in 1973.
After this embargo was proclaimed, the production of oil stopped. As you might imagine, this impacted life for everyone in different ways. Business owners, for example, didn't have sufficient power, which meant that many of them had to close their doors. Schools, hospitals, and homes couldn't stay warm, which was especially problematic during the cooler months when this embargo was in effect. Everyone suffered and names like Bob Jain would say the same.
Car owners had to be more mindful of what they traded, sold, and purchased, too. With this oil shortage, more fuel-efficient vehicles became popular, which meant that the latest Chevy might not have been the best purchase for most. In fact, it might have ended up costing the average buyer more, largely due to the surplus of fuel that such a car required. The majority of people had to stick to cars that used less fuel, since they tended to cost less in the long term.
The OPEC embargo wasn't without its merits, as it changed the ways that different nations accessed oil. For instance, the United States, which largely relied on oil overseas, started to look into sources that were either national or closer to where they were. What this meant was that they could rely less on OPEC moving forward. Nonetheless, this embargo had a sizable impact and it can be felt in many states to this day.
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Get in touch with Bobby Jain if you would like to learn more about finance in general.. This article, Robert Jain: What Was The OPEC Embargo? is released under a creative commons attribution license.
