1973 Oil Crisis Timeline

The prospect of gasoline rationing became a central political issue in the United States as shortages and long queues appeared. Although nationwide mandatory rationing was not enacted, several states used odd-even purchasing rules and other local restrictions.

European Community governments introduced coordinated and national conservation policies, including limits on driving, reduced heating, and restrictions on lighting. The measures reflected Europe's exposure to imported oil and the need to manage scarce supplies.

President Nixon announced Project Independence, a program intended to make the United States energy independent by 1980. It emphasized domestic oil and gas production, coal, nuclear power, conservation, and the development of alternative energy sources.

The Nixon administration created the Federal Energy Office to coordinate the national response to shortages and disruptions. The agency managed fuel allocation, conservation initiatives, and emergency energy policy during the crisis.

The British government restricted most commercial electricity users to three days of operation per week to conserve fuel during an energy shortage. The measure was imposed alongside industrial unrest and contributed to severe economic disruption.

Image source: Three-Day Week

The Emergency Highway Energy Conservation Act established a national maximum speed limit of 55 miles per hour. The policy sought to reduce gasoline consumption and became one of the most visible domestic responses to the oil crisis.

The United States adopted year-round daylight saving time under the Emergency Daylight Saving Time Energy Conservation Act. The measure was intended to reduce energy consumption, although public opposition led to its early termination for part of the year.

Egypt and Israel signed a disengagement agreement in Geneva-mediated negotiations. The diplomatic movement toward a settlement helped create conditions for the lifting of the oil embargo against the United States.

Twenty-four consuming countries met in Washington, D.C., to discuss the oil emergency and cooperation among importers. The conference helped lay the groundwork for a permanent organization focused on energy security.

The Organisation for Economic Co-operation and Development created the International Energy Agency in response to the crisis. Its members committed to emergency oil stocks, coordinated responses to supply disruptions, and long-term energy cooperation.

Image source: International Energy Agency

Oil-exporting countries accumulated enormous dollar revenues and deposited much of them in Western banks or invested them abroad. The resulting petrodollar recycling increased international lending and contributed to debt accumulation in developing countries.

After the crisis, OPEC maintained prices far above their pre-1973 levels and became the central force in the international oil market. Producer states captured a much larger share of petroleum revenues and used them to expand government spending and development programs.

The United States authorized the Strategic Petroleum Reserve through the Energy Policy and Conservation Act. Underground storage sites were developed to provide emergency crude supplies during future embargoes or major disruptions.

The Trans-Alaska Pipeline System began carrying North Slope crude to the port of Valdez. The project was accelerated by concerns about U.S. import dependence and became a major domestic response to the energy vulnerabilities revealed by the crisis.

Image source: Trans-Alaska Pipeline System

The Department of Energy began operations by consolidating federal energy programs. Its creation reflected the enduring importance of energy security, conservation, nuclear policy, and alternative-fuel research after the oil crisis.

Image source: United States Department of Energy

Political upheaval in Iran sharply reduced the country's oil exports and triggered another major price shock. The disruption showed that the structural vulnerabilities exposed in 1973 remained even after the Arab embargo ended.

Image source: Iranian Revolution

The Iranian Revolution and the Iran-Iraq War contributed to a second oil shock. Prices rose sharply again, reinforcing conservation efforts, accelerating non-OPEC production, and contributing to economic recessions in many industrial countries.

Image source: 1979 oil crisis

Conservation, improved efficiency, recession, expanded non-OPEC production, and competition among producers created an oil glut. Prices collapsed in 1986, demonstrating that the producer leverage achieved during the 1970s could be weakened by demand reduction and new supply.