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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Cogito who wrote (47950)	2/4/2008 9:08:05 PM
From: Lane3	Respond to of 541404

Senior moment. It's all a blur. I was remembering this one: 1979 energy crisis From Wikipedia, the free encyclopedia The 1979 (or second) oil crisis in the United States occurred in the wake of the Iranian Revolution. Amid massive protests, the Shah of Iran, Mohammad Reza Pahlavi, fled his country in early 1979, allowing Ayatollah Khomeini to gain control. 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. [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.[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. After 1980, oil prices began a six-year decline that culminated with a 46 percent price drop in 1986. 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.

To: Cogito who wrote (47950)	2/5/2008 11:49:29 AM
From: TimF	Read Replies (1) \| Respond to of 541404

She's right. If the oil supply is restricted you should get higher prices not lines, maybe a bit of lines as things adjust, and esp. because everyone gets concerned and tries to fill up all at once, but the lines shouldn't last very long (in a matter of days or at most a few weeks they should be history). The reason why you had lines for longer than that was because of price controls. Since you couldn't get rationing by price you got rationing by queue. Of course even the much higher prices wouldn't have been needed if the embargo didn't happen so in a sense your right as well, but then as Lane points out gas lines in the 70s were not just in 1973.