How did the world react to the energy crises?What is happening now is unprecedented and has no historical analogues. The depletion of oil supply is about 2.5 times stronger than the largest energy crises before.However, each energy crisis disrupt...
...ed the world order in its own way, creating a "watershed" after which the world was no longer the same.It is too early to discuss how the world will change after 2026, but it is likely that the largest importers will no longer allow #Iran to hold them by the throat. There can be only one such energy crisis. I'll look at the scenarios later, but for now, a look into history.The world's reaction to the Arab oil embargo 1973-1974.Creation of a collective energy security system. The main insti...
...tutional legacy of the crisis was the creation of the International Energy Agency (IEA) in November 1974 on the initiative of U.S. Secretary of State Henry Kissinger.This is exactly the same agency that initiated the release of 400 million barrels of oil from strategic reserves last week.All IEA members have committed to keep stocks equivalent to at least 90 days of net imports. This fundamentally changed the geometry of future crises, as a buffer appeared, allowing time to gain before the...
... energy situation stabilized.Strategic Oil Reserves (SPR). The U.S. Congress passed the Energy Policy and Conservation Act in December 1975, which established a Strategic Oil Reserve with a capacity of up to 1 billion barrels (now 415 million barrels).Energy saving and oil substitution programs.• The United States passed the Emergency Petroleum Allocation Act (1973), followed by a series of laws:• Introduction of car fuel efficiency standards (CAFE standards, 1975) from ~13 mph to mandator...
...y 27.5 by 1985.• National speed limit of 55 mph (1974).• Tax incentives for energy efficiency in buildings.• Most European countries and Japan have accelerated the program of transition to nuclear energy, plus very extensive comprehensive energy conservation programs.• This is literally the very minimum "at the top", there were many more initiatives, but mainly at the level of energy efficiency of cars.Accelerated diversification of production outside the Middle East.• Large-scale developm...
...ent of the North Sea (Great Britain and Norway) with commercial production by 1975-1978. By 1980, the #UK was producing ~1.6 million barrels per day, by 1985 ~2.5 million barrels per day.•Accelerating the development of Alaska fields (Prudhoe Bay). The construction of the Trans-Alaska oil pipeline (1,274 km) was approved in November 1973, and it was launched in 1977. Production reached ~2 million barrels per day at its peak.•Expansion of production in Mexico (Cantarel deposits), West Afric...