President Encyclopedia 1969-1981

President Encyclopedia 1969-1981 — page 5
8 The 1970s Energy Crunch In the 1970s Americans had to face the fact that their habit of guzzling gas and oil without thought to conservation would have to come to an end An energy crunch led one government official to say Popeye is running out of spinach At the beginning of the decade the United States consumed 30 percent of the world’s available energy One third of that was imported from foreign mostly Arab countries These countries had joined together in the Organization of Petroleum Exporting Countries OPEC In October 1973 OPEC imposed an embargo It stopped all shipments of oil to the United States in retaliation for U S arms shipments to Israel during the October Yom Kippur War Overnight long lines formed at gas stations When motorists finally reached the pumps they found that prices had risen dramatically jumping from thirty-five cents to one dollar a gallon in some places In efforts to conserve many gas stations closed on Sundays and the speed limit on the nation’s highways was reduced from 70 miles 112 65 km to 55 miles 80 47 km per hour a measure that proved to save lives as well as gas Carpooling use of mass transportation bicycle riding and walking were encouraged In March 1974 OPEC lifted the embargo and foreign oil began to enter the United States again though prices remained relatively high Gasoline supplies were replenished Furthermore Americans knew that a huge pipeline was being built across the frozen wilderness of Alaska It would soon deliver billions of gallons of oil from the Arctic to the lower 48 states The oil embargo had long-term effects that would plague the nation throughout the 1970s The U.S. automobile industry suffered as Americans switched to smaller more fuel-efficient foreign cars One company Chrysler Corporation was hit so hard that it took 1 5 billion dollars in loan guarantees from the U.S. government to keep the company from collapsing and taking untold numbers of workers down with it The downturn in the U.S. automobile industry triggered economic problems in related industries