How The Oil Crisis Affected The US Automotive World

To understand the oil crisis and how it affected and affects the automotive world, one has to look at the history of what has happened to oil in the United States. Some people do not really consider the state of oil in the United States to be in crisis yet, although many will admit the US has endured energy and oil crises in the past.

The current state of crude oil is one where the US is experiencing a spike or increase in pricing. The state of the economy and natural resources suggest that this is the result of many affairs which began during the very late 1990s. Part of the spike in prices began due to Middle Eastern struggles, including policy changes that resulted from the Organization of Petroleum Exporting Countries. Since that time the US has kept a high pricing strategy.

Arab Oil Embargo During the 70s

The worst oil crises happened ruing the 70s. During this time the Arab oil embargo occurred in 1973 causing crude oil prices to increase from three dollars per barrel to over twelve per barrel. The next crisis occurred in 1979 as a result of the Iranian revolution, which caused another dramatic increase in prices to thirty-six dollars per barrel of crude oil.

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Another jump in prices was seen following the Persian Gulf War which occurred in the early 1990s. This compounded the previous two oil crises in the United States. 

How Oil Prices Have Affected Automobile Manufacturers

Perhaps the biggest effect the larger prices on oil have caused in the United States is to inspire greater innovation and fuel efficiency. More people are looking to economize using alternative fuels. Manufacturers are trying to make more fuel-efficient gasoline engines. Consumers are now looking at diesel engines as an option. It seems no matter what happens with oil, consumers will always have ways to work around a crisis, whether that is to their fuel supply or to raw materials supplies in the United States. This trend will undoubtedly be reflected globally.

About the writer : Emon Anam, Founder of the marketing firm “Weftee” is passionate about blogging.Favorite Blog : Blogs Football