The 1970s Gas Crisis: Causes and Consequences

April 18, 1977

“The Oil Supply will be gone by 1981…Those are just the facts.” Carter

This address came four years after the Arab oil embargo of 1973, when energy prices had soared and the impacts were still reverberating through the American economy. Carter’s speech became known as part of his broader energy policy initiative, reflecting the genuine anxiety about resource depletion that characterized the late 1970s. It is worth noting that while Carter’s warnings about oil running out by the early 1980s did not materialize as predicted, his speech captured the very real energy concerns of that era and the need for conservation and policy changes. The gas lines of the 1970s were caused by a combination of geopolitical tensions and domestic policy decisions that created both real shortages and panic-driven demand.

The OPEC Oil Embargo

The primary trigger was OPEC’s aggressive action in response to Middle East conflicts. In October 1973, the Organization of Petroleum Exporting Countries raised the price of crude oil by 70 percent, and Arab oil-producing nations implemented an embargo against the United States. This embargo was a direct response to American support during the Yom Kippur War and severely disrupted oil supplies to the nation.

Or…was it a way to drive the price of oil up?

America’s Oil Dependency

The crisis was exacerbated by America’s growing reliance on foreign oil, particularly from the Middle East. The United States had become increasingly dependent on imported petroleum, making the nation vulnerable to supply disruptions orchestrated by OPEC nations.

Why, one might ask, were we so dependent on their oil? Democratic administrations throughout history have been guilty of making domestic exploration and drilling for oil difficult and expensive, hobbling companies from using our resources and reducing leverage over the Middle East. Now that might speak to dark money being used to win elections but…that is speculation on my part.

Thre real question is, who are these politicians working for? To me, and anyone with a brain…the highest bidder.

Domestic Policy Mistakes

Ironically, government price controls made the shortage worse. The United States attempted to curb high gas prices and inflation through price ceilings in the 1970s. However, these controls backfired; they led to reduced supply from producers and increased demand from consumers, creating artificial scarcity and the infamous long lines at gas stations.

Why… Because the profit margins from oil companies were declining and they dont really care about the effects on you and I. IMO

The Result

The combination of the Arab oil embargo, OPEC’s price increases, America’s foreign oil dependency, and misguided price control policies created a perfect storm that left Americans facing gas rationing, mile-long lines, and widespread frustration.

Oil supplies did not run out by 1981 or in the years that followed.

Here is what actually happened:In fact, the price of Brent crude during his speech was around $8.50 a barrel, compared to today’s $76.01.

If you read between the lines, those gas lines and the energy shortage most probably had a lot more to do with oil companies’ greed for more profit and a lot less to do with instability in the Middle East.

History is rife with false flags and what I call “Chicken Little politics.” Oh look, the sky is falling; we need to take away your muscle cars and trucks and put you in battery-operated tin cans with little computers monitoring your every move.

What is going on?

Energy Market Responses

The warnings, while alarming, actually spurred several practical developments:

• Increased domestic oil exploration and production: Companies invested heavily in new drilling.
• Conservation efforts: Americans did reduce consumption through more efficient vehicles and home heating practices.
• Alternative energy research: Solar, wind, and other renewable programs received more attention and funding.

Long-term Effects

• Oil prices eventually stabilized and declined in the 1980s as new supplies came online.
• The “peak oil” crisis narrative faded as new extraction technologies emerged.
• Consumer behavior shifted toward fuel efficiency, which had lasting impacts on the auto industry.

The Broader Impact

Carter’s warnings, while not accurate in their timeline, did create psychological effects: some beneficial (energy consciousness, efficiency standards) and some problematic (public anxiety, distrust in government predictions).

The historical lesson is that doomsday predictions about resource depletion, while sometimes motivating positive changes, often fail to account for human innovation, market adaptation, and technological advancement.

Do you remember how the public mood shifted once 1981 passed and oil was still available?

Again, it is the sky is falling.

We learned nothing.

For the last several years, Gore has been making bank flying around the world in his private jet, selling the same Chicken Little philosophy about climate change.

The result is that most of us who remember these things do not trust the government, and we vote.

What we do know is that the earth is not replenishing fossil fuel as fast as we are using it.

Is it morally right to “nudge” people with Doomsday fabricated science?

If we assume that oil, gas, and so on is finite (and they use petrochemicals in a lot of things, not just your gas tank), what other choices do we have, and should we not have started around 1981?

We did, kind of.

Gas mileage increased from a few miles to the gallon to forty or more in some cases.

I traded my Good Times Van, with all the luxury of a mobile living room, when gas spiked to $1.32 a gallon for a Ford Escort station wagon that got 22 miles per gallon versus the 13 in the van. I still miss the van.

The world was being nudged into giving up comfort and “real cars” for plastic, transverse-mounted engines (cheaper), and fuel-injected, computer-controlled, emission-controlled cars that required more expensive gas to save the planet and conserve energy. That change also made almost impossible for the owner to work on thier own car thus becoming a slave to outragious repair bills for a $12 part.

As the demand for gas declined, the prices went up to compensate the oil companies.

Who got screwed?

We were nudged into giving up our land yachts for cars that, if you got into an accident, the likelihood of a fatality was much higher.

The insurance industry, catching the brunt of this, sent their folks from Avenue K over to Congress to rewrite the laws to make seat belt use, airbags, and other safety devices mandatory. More of our freedoms removed for the bottom line of the insurance industry. Fewer fatalities, lower insurance payouts, and we are all footing the bill for the profit of insurance companies and oil companies.

Cars went from a few thousand dollars to an incredible amount. A standard F-150 in 1981 was less than $6,000. Today, prices range from $47,000 to $65,000.

The point of this blog post is this: you can bet that whatever the media is telling you regarding cause and effect almost certainly has nothing to do with reality and more to do with big business manipulating the puppets in Washington to do their bidding.

If your emotions are tweaked, you are most likely being manipualted.

It only takes knowing history and turning off the mainstream media to understand why the world is so messed up.

In a future blog post, we will evaluate the need for energy that is renewable but not necessarily destructive to our way of life or to the property values of those who have left the city to live in the country. Rural areas, it seems, are under assault from “heat islands” created by solar farms and data centers. Will these heat islands have any effects on the way we live? Film at eleven.

Your thoughts? Comment below.

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