Until 1969, imported oil had never been more than 19.8 percent of the total amount of oil consumed in the United States. What happened to U.S. reliance on imported oil in the 1970s?

1 Answer
Jan 30, 2017

The economic group OPEC was formed.


In 1973 OPEC was formed by the world's leading oil producing nations outside the United States. The perception was that a few large corporations, Standard Oil, British Petroleum and Shell Oil (Netherlands) were controlling the world's oil supply and funneling money out of the countries where the oil was taken. With OPEC formed oil wells in Saudi Arabia, Iraq, and other middle east countries were nationalized although the companies who had been running them were allowed to stay and continue pumping. But OPEC set the price of oil, first but reducing production and then by price setting. The price of gas per gallon double over night, literally.