[Author’s Name]
[Institution’s Name]
Essay on Impact Of Oil Prices In U.S
Introduction
The oil industry is a type of industry which brings petroleum to a financial market. Petroleum is often considered the lifeblood of nearly all other industry, if not industrialized civilization itself and thus is a highly prominent and critical concern for many nations. Oil accounts for 40% of the United States' energy supply and a comparable percentage of the world’s energy supply. The United States currently consumes 7.5 billion barrels (1.2 km³) of oil per year, while the world at large consumes 30 billion barrels (4.8 km³). The United States, and most of the world, are net importers of the resource.
History
Oil crisis of 1973:
The first large price shift in oil prices came in 1973. The oil crisis of 1973 began in the Mediterranean because of a war. The Yom Kippur War was a result of an attack on Israel by Syria and Egypt an October 5, 1973. Throughout history, the United States has always shown support for Israel and its campaigns. This situation was no different. The United States and many countries in the western world showed strong support for Israel.
As a result of this support, Arab exporting nations imposed an embargo on the nations supporting Israel. Because these nations had the power of a monopoly in the oil industry, they tried to use the embargo as a blackmail technique. The Arab nations began the embargo by curtailing oil production by five million barrels per day. In turn, the United States increased production in other countries by about one million barrels per day. The remaining net loss of four million barrels per day extended through March of 1974 and represented seven percent of the free-world production. The oil embargo was imposed by Arab oil producers through the then-powerful cartel, the Organization of Petroleum Exporting Countries OPEC........
