To: Karen Lawrence who wrote (36858 ) 8/11/2002 1:12:39 AM From: D. Long Read Replies (1) | Respond to NO stalemate, Derek, your sentences contain patent errors: You write: "because the government was forcing them (oil companies) to sell gas far below the price of gas..." OPEC, not the US, decided pricing. THe Organization of Petroleum Exporting Countries, was formed in 1973 to control world oil prices. During the embargo/"shortage" gas prices quadrupled at the pump(from 30 cents to over a dollar), NOT as you assert: "gas prices were far below the price of gas". libertyhaven.com Typically, the government didn't act as much as it reacted. Congress demanded action. A centralized oil allocation process was quickly put together (Mr. Simon terms it a "disaster"). Oil price controls, already in place under President Nixon's "New Economic Policy" Of generalized wage--price controls, were tightened (thereby compounding the crisis). uri.edu One price control that lingered was the control on oil prices, and in 1973 the US saw the impact of a "wrong price." This was the time when the OPEC nations cut off oil supply to the US, and because the price of oil was fixed, there was an excess demand for oil that showed up as long lines of cars waiting to get gas. In 2000, when the price of oil rose sharply again, there were no price controls and the impact of another OPEC supply cut was steeply higher prices, but no lines. You wrote "After the '78 shortage, there was extensive legislation passed ramping up alternative...", NO. The '73 crisis brought immediate changes to Detroit and car manufacturing and as well as action from the WH. Nixon called for folks to conserve, and we did. In addition to odd/even day only gas purchase restrictions, stations were closed Sundays. This went on for months, when restrictions were lifted until the '78 "shortage", which was relatively short-lived. Twice you claim gas cost $12/gal in '73. Your quote: "might have been $12 per gallon, I can't recall" According to your profile you weren't born until the following year, 1974. I should have looked sooner. "sigh" I lived through those times and changes and remember them. Might have been $12 a barrel , can't recall. recall , I never stated it was personal recollection. Your recollection seems to be just as faulty, since I've provided multiple counters to your insistence that gas lines were caused by OPEC price spikes, and your obstinence in refusing to accept factual evidence of PRICE CONTROLS.There should be a ton of information online if you look. You can also find contemporaneous accounts at the library in newspaper and magazine archives.
