ÿþ<html> <head> <title> WHKMLA : Historical Dictionaries : Oil Crisis </title> <!-- copyright Alexander Ganse, 2005 --> </head> <body bgcolor="lightblue" text="black" link="blue" vlink="red" alink="brown"> <style> <!-- A{ font-weight: bold; font-size: 10pt; font-face: arial; } --> </style> <DIV align ="center"> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD align = "center" valign = "center"> <A HREF = "../../index.html"> <img src = "../../whkmla2.jpg" border = "0"></a></TD></TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width = "150" height = "36" align = "center" valign = "center"> <font size = "2" face = "arial"><B> Timeline </b></font></TD> <TD width = "36" height = "36" align = "center" valign = "center"> <A HREF = "../../timelines/nhb/tloc.html"> <img src = "../../region/arrowleft.gif" width = "36" height = "36" border = "0"> </a></TD> <TD align = "center" valign = "center"> <A HREF = "../../timelines/nhb.html"> <img src = "../banhistdic.jpg" border = "0"> </TD> <TD width = "36" height = "36" align = "center" valign = "center"> <img src = "../../region/arrowright.gif" width = "36" height = "36" border = "0"> </a></TD> <TD width = "100" height = "36" align = "center" valign = "center"> <font size = "2" face = "arial"><B> </b></font></TD></TR></TABLE> <font size = "3" face = "arial"><B><i>First posted on May 14th 2005 </i></b></font><BR><BR><BR><BR> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD align = "center" valign = "center" width = "900"> <font face = "Times Roman" size = "5"><B> Historical Dictionaries : Oil Crisis</B></font> <BR> <font face = "Times Roman" size = "2"><i> http://www.zum.de/whkmla/histdic/nhb/hdoc.html </i></font> </B></font></TD></TR></TABLE> <BR><BR> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Alternative Energies</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> nuclear power stations, power stations utilizing the energy of the tides (the Barrage, France), wind power stations (in this area, Denmark long was leading), solar power generation, Biogas. Nuclear power generation was criticized by environmentalists as hazardous, the target of political campaigns aiming at its abolition. In countries of the <A HREF = "hdecw.html#easternbloc">Eastern Bloc</A>, such as the GDR, state policy aimed to utilize domestic energy sources (brown coal) in order to reduce costly imports to a minimum. This caused a significant increase in sulphurdioxide emissions, with detrimental consequences to the country's environment. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Car-Free Sundays</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Measure implemented in the FRG at the height of the <A HREF = "hdoc.html#oilcrisis">Oil Crisis</A> in 1973 - on a number of sundays, driving on West Germany's roads was forbidden for all non-essential traffic. People took a stroll on the country's highways. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> Club of Rome </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> predicted a limit of economic growth due to the fact of limitede supplies in raw materials, most notably oil. see under <A HREF = "hdeboom.html#clubofrome">Economic Boom</A> </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Druzhba Pipeline</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> A system of pipelines supplying the <A HREF = "hdeintr.html#comecon">Comecon</A> nations of Eastern Central Europe with Soviet oil, constructed in 1973-1974. Druzhba translates to 'friendship'; the USSR delivered oil at prices way below world market price - in limited quantities, well short of the needs of the recipient countries. The USSR, a major oil producer, continued to deliver subsidized oil to her allies until the fall of communism in the late 1980es. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Energy Efficiency</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> As long as gasoline prices has been low, energy efficiency had ranked low on the priority list of engineers, especially in the U.S. where taxes collected on the sale of gasoline were low. Europe's and Japan's car industries produced more energy-efficient cars than Detroit, and during the oil crisis expanded their market shares in the U.S. Engineers everywhere thought of solutions reducing the km per liter of gasoline ratio respectively the general energy efficiency. The state, in many countries, provided tax incentives for persons who made investments intended at reducing energy consumption (such as insulating their houses to reduce heating costs). </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Gulf War</B> (First) </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> triggered by Iraq invading Iran in 1980; lasted until 1988. Pitted two major oil producers and <A HREF = "hdoc.html#opec">OPEC</A> members against each other. During the war, both countries needed to generate quick cash, which they did by exporting oil in excess of their quotas; this resulted in a significant decline in the oil price. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>North Sea Oil</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Gas and oil fields under the North Sea were suspected/found in the 1950es and 1960es. The oil crisis beginning in 1973 made oil-drilling in the North Sea became profitable; Norway and the U.K. (Scotland) became oil producers; neither country joined <A HREF = "hdoc.html#opec">OPEC</A>. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Oil Crisis</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> 1973-1986; caused by <A HREF = "hdoc.html#opec">OPEC</A> limiting the oil production of her member states by imposing a quota system; resulted in a drastic increase of the oil price. In 2003-2004 oil prices again rose considerably, this time showing the inability of <A HREF = "hdoc.html#opec">OPEC</A> to do much about it, the problem is caused by limited oil supplies and political instability in some supply regions. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Oil-Driven Economy</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Oil had been a critical factor in WW II; the Allies disposed of most of the world's oil fields; Germany depended on factories extracting fuel from coal. The booming economy of the 1950es and 1960es had been heavily dependent on oil, a dependency which was increasing as power stations and heating systems were converted from burning coal to burning oil, as the production of plastics expanded. Problems in the logistics of oil supply, such as the <A HREF = "hdoc.html#suezcrisis">Suez Crisis</A> of 1956, showed this dependancy openly. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "opec"><B>OPEC</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Organization of Petroleum Exporting Countries, established in 1960; founding members Venezuela, Saudi Arabia, Iran, Iraq, Kuwait. Later joined by Qatar, Libya, Indonesia, UAE, Algeria, Nigeria. OPEC was instrumental in causing the oil crisis, by establishing oil production quotas for the member countries. OPEC solidarity failed during the (first) Gulf War, causing the price to decline. OPEC meetings were traditionally held in Vienna, Austria </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Renewable Energies</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> energies not burning fossil fuels or utilizing uranium. The develoment of these energy sources is a key demand of the environmentalist movement. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Suez Canal</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Constructed in 1859-1869; nationalized by Egypt in 1956. In the 1950es and 1960es, oil tankers used to pass through the canal; closed for shipping from 1967 to the late 1970es; by the time it reopened, supertankers were used which did not fit in the canal. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <A NAME = "suezcrisis"><B>Suez Crisis</B></A> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> In 1956 Egypt nationalized the (British/French owned) Suez Canal without compensation. Britain, France and Israel launched a combined invasion, which then was called off due to U.S. pressure. Briefly, the Suez Canal had been closed, causing a brief interruption of Europe's oil supplies. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Tax on Gasoline</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Prices charged at the gasoline pump in Saudi Arabia, the U.S. and Western Europe/Japan/South Korea vary considerably. The latter group of states imposed a tax on the consumption of gasoline roughly making up 75 % of the price (in Germany the revenues are used to pay for construction and maintenance of the toll-free highways). This policy caused the car industries of Europe and the Far East to emphasize energy efficiency well before the oil crisis. </font></TD> </TR></TABLE> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD width="200" valign="top" align="left"> <font size = "2"> <B>Yom Kippur War</B> </font></TD> <TD width="480" valign="top" align="left"> <font size = "2"> Arab-Israeli War fought in 1973. Named after a Jewish holiday on which Israel was caught by surprise by invading Egyptian and Syrian forces. In the first week of the war, the Egyptians and Syrians gained territory; a supply of U.S. arms made it possible for Israel to turn the table in the second week of the war. Then an armistice was concluded. The Arab World was upset about U.S. interference which they blamed for denying victory to Egypt and Syria. Punishment for the U.S. was a major motive causing the Oil Crisis. </font></TD> </TR></TABLE> <BR><BR> <TABLE border = "0" cellspace="0" cellpadding="0" align="center"> <TR> <TD align = "left" valign = "center" width = "700"> <font face = "Times Roman" size = "2"> PRINTED REFERENCE : <BR> </font></TD> </font></TD></TR></TABLE> <BR><BR> </DIV> </DIV> <DIV align="center"> <A href="mailto:aganse@hotmail.com"> <IMG src="../../email.gif" border="0"></a><BR> <BR><BR><BR><BR><BR> <!-- Start of CH Counter --> <script type="text/javascript"> //<!-- // chCounter v2.0.0 // settings: cstatus = "active"; visible = "0"; path_to_counterfile = "http://www.zum.de/whkmla/counter/counter.php"; urlhp = "http://www.zum.de"; //////////////// url = unescape(location.href); file = url.substring(url.lastIndexOf(urlhp) + urlhp.length, url.length); file = (file.charAt(0) != "/") ? 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