Graph of Top Oil Producing Counties, showing drop in Iran's Production ^[1]

The 1979 (or second) oil crisis in the United States occurred in the wake of the Iranian Revolution. The United States of America —commonly referred to as the The Iranian Revolution' (mostly known as the Islamic Revolution, Persian: انقلاب اسلامی Enghelābe Eslāmi was the Revolution that transformed Amid massive protests, the Shah of Iran, Mohammad Reza Pahlavi, fled his country in early 1979, allowing Ayatollah Khomeini to gain control. Seyyed Ruhollah Musavi Khomeini ( Persian:, pronounced muːsæviː-je xomejniː}}( September 24, 1902 – June 3 1989 The protests shattered the Iranian oil sector. While the new regime resumed oil exports, it was inconsistent and at a lower volume, forcing prices to go up. Saudi Arabia and other OPEC nations, under the presidency of Dr. Mana Alotaiba increased production to offset the decline, and the overall loss in production was about 4 percent. The Kingdom of Saudi Arabia, KSA ( المملكة العربية السعودية, al-Mamlaka al-ʻArabiyya as-Suʻūdiyya) or Suudi The Organization of the Petroleum Exporting Countries ( OPEC) is a Cartel of thirteen countries made up of Algeria, Angola, Ecuador Dr Mana Alotaiba (Arabic الدكتور مانع العتيبه was born on the 15th of May 1946 To Saeed Alotaiba in Abu Dhabi the United Arab Emirates ^[2] However, a widespread panic resulted, driving the price far higher than would be expected under normal circumstances. In the United States, the Carter administration instituted price controls. James Earl "Jimmy" Carter Jr (born October 1 1924 was the thirty-ninth President of the United States, serving from 1977 to 1981 and the recipient of the 2002 ^[3]

In 1980, following the Iraqi invasion of Iran, oil production in Iran nearly stopped, and Iraq's oil production was severely cut as well. For a topic outline on this subject see List of basic Iraq topics. For a topic outline on this subject see List of basic Iran topics.

After 1980, oil prices began a six-year decline that culminated with a 46 percent price drop in 1986. The 1980s oil glut was a surplus of crude oil caused by falling demand following the 1973 and 1979 energy crises. This was due to reduced demand and over-production, and caused OPEC to lose its unity. Oil exporters such as Mexico, Nigeria, and Venezuela expanded. The US and Europe got more oil from Prudhoe Bay and the North Sea.

Iran

In November 1978, A strike by 37,000 workers at Iran's nationalized oil refineries, which initially reduced production from 6 million barrels (950,000 m³) per day to about 1. 5 million barrels (240,000 m³). ^[4] Foreign workers (including skilled oil workers) fled the country. On January 16, 1979, Shah of Iran, Mohammad Reza Pahlavi and his wife left Iran at the behest of Prime Minister Shapour Bakhtiar (a long time opposition leader himself), who sought to calm down the situation. Events 27 BC - The title Augustus is bestowed upon Gaius Julius Caesar Octavian by the Roman Senate. Year 1979 ( MCMLXXIX) was a Common year starting on Monday (link displays the 1979 Gregorian calendar) Shapour Bakhtiar ( (also Shapur Bakhtiar) ( Persian: شاپور بختیار Shāpūr Bakhtīār) (born 1914 or 1915 - August ^[5]

Effect on Other OPEC members

OPEC net oil export revenues for 1971 - 2007. ^[6]

The rise in oil price benefited other OPEC members, which made record profits.

Effect on the United States

Line at a gas station in Maryland, USA, June 15, 1979.

The Carter Administration began a phased decontrol of oil prices on 5 April when the average price of crude oil was US$15. This article is about the price of crude oil see Gasoline usage and pricing for information about derivative motor fuels The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 85. Over the next 12 months the price of crude oil rose to $39. 50 (its all time highest real price until May 7th, 2008^[7]). The distinction between real versus nominal value occurs in many fields During this period domestic U. S. oil output rose sharply from the large Prudhoe Bay fields while oil imports fell sharply. Prudhoe Bay (ˈpruːdoʊ is a Census-designated place (CDP located in North Slope Borough in the U However, since there were no price controls on imported oil, this had no impact on boosting the supply of gasoline in 1979. Hence, long lines appeared at gas stations, as they had six years earlier during the 1973 oil crisis. The 1973 oil crisis began on October 17 1973 when the members of Organization of Arab Petroleum Exporting Countries (OAPEC consisting of the Arab members of

As the average vehicle of the time consumed between 2-3 liters (about 0. 5-0. 8 gallons) of gasoline (petrol) an hour while idling, it was estimated that Americans wasted up to 150,000 barrels (24,000 m³) of oil per day idling their engines in the lines at gas stations. A filling station, fueling station, gas station, service station, petrol station, or gasbar, Retail Outlet ^[8]

Gas coupon printed but not issued during the 1979 energy crisis

During the period, many people believed the oil companies artificially created oil shortages to drive up prices, rather than simply high prices caused by natural factors beyond any human influence or control. Many politicians proposed gas rationing, such as the Governor of Maryland, Harry Hughes, who proposed odd-even rationing (only people with an odd-numbered license plate could purchase gas on an odd-numbered day), as was used during the 1973 crisis. Rationing is the controlled distribution of resources and scarce goods or services The Governor of Maryland heads the Executive branch of the government of the U Harry Roe Hughes (born November 13, 1926) a member of the United States Democratic Party, was the 57th Governor of Maryland Several states actually implemented odd-even gas rationing, including Pennsylvania, New Jersey, and Texas. Coupons for gasoline rationing were printed but were never actually used during the 1979 crisis. ^[9]

President Jimmy Carter made symbolic efforts to encourage energy conservation, such as urging citizens in a famous July 15, 1979, 'malaise' speech to turn down their thermostats. James Earl "Jimmy" Carter Jr (born October 1 1924 was the thirty-ninth President of the United States, serving from 1977 to 1981 and the recipient of the 2002 Events 1099 - First Crusade: Christian soldiers take the Church of the Holy Sepulchre in Jerusalem after the final Year 1979 ( MCMLXXIX) was a Common year starting on Monday (link displays the 1979 Gregorian calendar) He also installed solar power panels on the roof of the White House and a wood-burning stove in the living quarters. Solar energy is the Light and radiant heat from the Sun that powers Earth 's Climate and Weather and sustains Life See also Executive Office of the President of the United States The White House, formerly known as the Executive Mansion, is the Official residence However, the panels were removed in August 1986 during the administration of his successor, Ronald Reagan, after a leak and were never replaced.

Carter's fire-side speech argued the oil crisis was "the moral equivalent of war". More importantly, Carter, as part of his administration's efforts at deregulation, proposed removing price controls that had been imposed in the administration of Richard Nixon during the 1973 crisis. Deregulation, a term which gained widespread currency in the period 1970-2000 can be seen as a process by which governments remove reduce or simplify Restrictions on Business Congress agreed to remove price controls in phases; they were finally dismantled in 1981 under Reagan. ^[10]

In 1980, the U. S. Government established the Synthetic Fuels Corporation to produce an alternative to imported fossil fuels. The Synthetic Fuels Corporation was a US government -funded corporation established in 1980 by the Synthetic Fuels Corporation Act to create a market for alternatives

Oil Patch

When West Texas intermediate crude oil increased 250 percent between 1978 and 1980, the oil-producing areas of Texas, Oklahoma, Louisiana, Colorado, Wyoming, and Alaska began experiencing an economic boom and population inflows. ^[11]

Automobile fuel economy

At the same time, Detroit's then-Big Three automakers (Ford, Chrysler, GM) were marketing downsized automobiles which met the CAFE fuel economy mandates passed in 1978; by the mid-1980s, a majority of rear wheel drive (RWD) family sedans and station wagons sold poorly despite government mandates from CAFE; vehicles like the Ford Fairmont and Dodge St. Regis were short-lived in response to second energy crisis. Ford Motor Company is an American Multinational corporation and the world's fourth largest automaker based on Worldwide vehicle sales, following Chrysler LLC is an American Automobile manufacturer that has been producing Automobiles since 1925 General Motors Corporation ( GM) ( is a multinational automobile manufacturer founded in 1908 and headquartered in the United States. See Ford Fairmont (Australia for the Australian built vehicle of the same name The Dodge St Regis is a full-size Dodge Automobile built from 1979 to 1981

GM's Cadillac division experimented with their V8-6-4 power plant (the ancestor of the modern-day Active Fuel Management and/or variable displacement), which was a market failure. Cadillac is a Brand of Luxury vehicles owned by General Motors. Cadillac was the first Automobile maker to mass produce a V8 engine ^[12]

When RWD family sedans were marketed during this era, this is where Japanese imports were building inroads; by the start of the 1980s, every automaker was making the transition to front-wheel drive.

See also

• Energy crisis
• Iran hostage crisis
• 1973 oil crisis
• 1979 world oil market chronology
• 1980s oil glut
• 1990 spike in the price of oil
• Oil price increases since 2003
• Hubbert peak theory
• Jimmy Carter

Further reading

• The Prize: The Epic Quest for Oil, Money, and Power,(1993) , by Daniel Yergin]], Simon & Schuster, ISBN 0671799320 & ISBN 0671502484

References