1970s energy crisis

The 1970s energy crisis was a period when the major industrial countries of the world, particularly the United States, Canada, Western Europe, Japan, Australia, and New Zealand, faced substantial petroleum shortages, real and perceived, as well as elevated prices. The two worst crises of this period were the 1973 oil crisis and the 1979 energy crisis, when the Yom Kippur War and the Iranian Revolution triggered interruptions in Middle Eastern oil exports.[2]

The crisis began to unfold as petroleum production in the United States and some other parts of the world peaked in the late 1960s and early 1970s.[3] World oil production per capita began a long-term decline after 1979.[4]

The major industrial centers of the world were forced to contend with escalating issues related to petroleum supply. Western countries relied on the resources of potentially unfriendly countries in the Middle East and other parts of the world.

The crisis led to stagnant economic growth in many countries as oil prices surged. Although there were genuine concerns with supply, part of the run-up in prices resulted from the perception of a crisis. The combination of stagnant growth and price inflation during this era led to the coinage of the term stagflation.[5]

By the 1980s, both the recessions of the 1970s and adjustments in local economies to become more efficient in petroleum usage, controlled demand sufficiently for petroleum prices worldwide to return to more sustainable levels.

The period was not uniformly negative for all economies. Petroleum-rich countries in the Middle East benefited from increased prices and the slowing production in other areas of the world. Some other countries, such as Norway, Mexico, and Venezuela, benefited as well. In the United States, Texas and Alaska, as well as some other oil-producing areas, experienced major economic booms due to soaring oil prices even as most of the rest of the nation struggled with the stagnant economy. Many of these economic gains, however, came to a halt as prices stabilized and dropped in the 1980s.

1970s energy crisis
Nominalrealoilprices1968-2006
Real and Nominal price of oil, 1968–2006.[1]
Date1973–1980
Also known as1970s oil crisis

Key periods

US Crude Oil Production and Imports
United States oil production peaked in 1970.

Production peaks around 1970

During the 1960s, petroleum production in some of the world's top producers began to peak. Germany reached its production peak in 1966, Venezuela and the United States in 1970, and Iran in 1974.[6] Canada's conventional oil production peaked around this same time (though non-conventional production later helped revive Canadian production to some degree).[7] The worldwide production per capita peaked soon afterward.[4]

Although production in other parts of the world was increasing, the peaks in these regions began to put substantial upward pressure on world oil prices. Equally as important, control of the oil supply became an increasingly important problem as countries like West Germany and the U.S. became increasingly dependent on foreign suppliers for this key resource.

1973 oil crisis

The 1973 oil crisis is a direct consequence of the US production peak in late 1960 and the beginning of 1971 (and shortages, especially for heating oil, started from there). The "embargo" as described below is the "practical name" given to the crisis. For the main Arab producers, the "embargo" allowed them to show to "the Arab street" that they were doing something for the Palestinians. In real market terms (number of barrels) the embargo was almost a non-event, and only from a few countries, towards a few countries.[8]

It should also be noted that the "Embargo" was never effective from Saudi Arabia towards the US, as reported by James Akins in interview at 24:10 in the documentary "la face cachée du pétrole part 2".[9] James Akins, who audited US capacity for Nixon after US peak, was US ambassador in Saudi Arabia at that time. Lawrence Rocks and Richard Runyon captured the unfolding of these events at the time in The Energy Crisis book.[10][11] In October 1973, the members of Organization of Arab Petroleum Exporting Countries or the OAPEC (consisting of the Arab members of OPEC) proclaimed an oil embargo "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war; it lasted until March 1974.[12] OAPEC declared it would limit or stop oil shipments to the United States and other countries if they supported Israel in the conflict. With the US actions seen as initiating the oil embargo, the long-term possibility of embargo-related high oil prices, disrupted supply and recession, created a strong rift within NATO; both European countries and Japan sought to disassociate themselves from the US Middle East policy. Arab oil producers had also linked the end of the embargo with successful US efforts to create peace in the Middle East, which complicated the situation. To address these developments, the Nixon Administration began parallel negotiations with both Arab oil producers to end the embargo, and with Egypt, Syria, and Israel to arrange an Israeli pull back from the Sinai and the Golan Heights after the fighting stopped. By January 18, 1974, Secretary of State Henry Kissinger had negotiated an Israeli troop withdrawal from parts of the Sinai. The promise of a negotiated settlement between Israel and Syria was sufficient to convince Arab oil producers to lift the embargo in March 1974. By May, Israel agreed to withdraw from the Golan Heights.[12]

Oil Prices Since 1861
Graph of oil prices from 1861–2007, showing a sharp increase in 1973, and again in 1979. The orange line is adjusted for inflation.

Independently, the OPEC members agreed to use their leverage over the world price-setting mechanism for oil to stabilize their real incomes by raising world oil prices. This action followed several years of steep income declines after the recent failure of negotiations with the major Western oil companies earlier in the month.

For the most part, industrialized economies relied on crude oil, and OPEC was their major supplier. Because of the dramatic inflation experienced during this period, a popular economic theory has been that these price increases were to blame, as being suppressive of economic activity. However, the causality stated by this theory is often questioned.[13] The targeted countries responded with a wide variety of new, and mostly permanent, initiatives to contain their further dependency. The 1973 "oil price shock", along with the 1973–1974 stock market crash, have been regarded as the first event since the Great Depression to have a persistent economic effect.[14]

1979 energy crisis

Top Oil Producing Countries
Production in top countries by year (million barrels per day)[15]

A crisis emerged in the United States in 1979 during the wake of the Iranian Revolution. Amid massive protests, the Shah of Iran, Mohammad Reza Pahlavi, fled his country in early 1979, allowing the 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.[16] However, a widespread panic resulted, driving the price far higher than would be expected under normal circumstances.

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 decline as other countries began to fill the production shortfalls from Iran and Iraq.

1980s oil glut

The 1973 and 1979 energy crisis had caused petroleum prices to peak in 1980 at over US$35 per barrel (US$106 in today's dollars). Following these events slowing industrial economies and stabilization of supply and demand caused prices to begin falling in the 1980s.[17] The glut began in the early 1980s as a result of slowed economic activity in industrial countries (due to the 1973 and 1979 energy crises) and the energy conservation spurred by high fuel prices.[18] The inflation adjusted real 2004 dollar value of oil fell from an average of $78.2 per barrel in 1981 to an average of $26.8 in 1986.[19]

In June 1981, The New York Times stated an "Oil glut! ... is here"[20] and Time Magazine stated: "the world temporarily floats in a glut of oil",[21] though the next week a New York Times article warned that the word "glut" was misleading, and that in reality, while temporary surpluses had brought down prices somewhat, prices were still well above pre-energy crisis levels.[22] This sentiment was echoed in November 1981, when the CEO of Exxon Corp also characterized the glut as a temporary surplus, and that the word "glut" was an example of "our American penchant for exaggerated language". He wrote that the main cause of the glut was declining consumption. In the United States, Europe and Japan, oil consumption had fallen 13% from 1979 to 1981, due to "in part, in reaction to the very large increases in oil prices by the Organization of Petroleum Exporting Countries and other oil exporters", continuing a trend begun during the 1973 price increases.[23]

After 1980, reduced demand and overproduction produced a glut on the world market, causing a six-year-long decline in oil prices culminating with a 46 percent price drop in 1986.

Effects

Recession

1973-75 recession
In the parlance of recession shapes, the Recession of 1973–75 in the United States could be considered a U-shaped recession, because of its prolonged period of weak growth and contraction.[24]
  Percent change from preceding period in real gross domestic product (annualized; seasonally adjusted)
  Average GDP growth 1947–2009
Source: Bureau of Economic Analysis

The decade of the 1970s was a period of limited economic growth due in part to the energy crises of that decade. Although the mid decade was the worst period for the United States the economy was generally weak until the 1980s. The period marked the end of the general post-World War II economic boom. It differed from many previous recessions as being a stagflation, where high unemployment coincided with high inflation.

Other causes that contributed to the recession included the Vietnam War, which turned out costly for the United States of America and the fall of the Bretton Woods system. The emergence of newly industrialized countries rose competition in the metal industry, triggering a steel crisis, where industrial core areas in North America and Europe were forced to re-structure. The 1973–1974 stock market crash made the recession evident.

According to the National Bureau of Economic Research, the recession in the United States lasted from November 1973 to March 1975.[25] Although the economy was expanding from 1975 to the first recession of the early 1980s, which began in January 1980, inflation remained extremely high for the rest of the decade.

During this recession, the Gross Domestic Product of the United States fell 3.2%. Although the recession ended in March 1975, the unemployment rate did not peak for several months. In May 1975, the rate reached its height for the cycle of 9%.[26] (Only two cycles have higher peaks than this: the current cycle, when the unemployment rate is currently 9.7% in the United States; and the early 1980s recession, when unemployment peaked at 10.8% in November and December 1982.)

The recession also lasted from 1973 to 1975 in the United Kingdom. The GDP declined by 3.9%[27][28] or 3.37%[29] depending on the source. It took 14 quarters for the UK's GDP to recover to that at the start of recession.[27]

Strategic petroleum reserves

As a result of the 1973 crisis many nations created strategic petroleum reserves (SPRs), crude oil inventories (or stockpiles) held by the governments of particular countries or private industry, for the purpose of providing economic and national security during an energy crisis. According to the United States Energy Information Administration, approximately 4.1 billion barrels (650,000,000 m3) of oil are held in strategic reserves, of which 1.4 billion is government-controlled. The remainder is held by private industry. At the moment the US Strategic Petroleum Reserve is one of the largest strategic reserves, with much of the remainder held by the other 26 members of the International Energy Agency.[30] Recently, other non-IEA countries have begun creating their own strategic petroleum reserves, with China being the largest of these new reserves. Since current consumption levels are neighboring 0.1 billion barrels (16,000,000 m3)/day, in the case of a dramatic worldwide drop in oil field output as suggested by some peak oil analysts, the strategic petroleum reserves are unlikely to last for more than a few months.

Middle East

Since Israel's declaration of independence in 1948 this state has found itself in nearly continual conflict with the Arab world and some other predominantly Muslim countries. The animosity between the Arabs and the Israelis became a global issue during the 1970s. The Yom Kippur War of 1973, with the supplying of Israel by its Western allies while some Arab states received Soviet supplies, made this one of the most internationally threatening confrontations of the period.

The large oil discoveries in the Middle East and southwestern Asia, and the peaking of production in some of the more industrialized areas of the world gave some Muslim countries unique leverage in the world, beginning in the 1960s. The 1973 and 1979 crises, in particular, were demonstrations of the new power that these countries had found. The United States and other countries were forced to become more involved in the conflicts between these states and Israel leading to peace initiatives such as the Camp David Accords.

OPEC

One of the first challenges OPEC faced in the 1970s was the United States' unilaterally pulling out of the Bretton Woods Accord and taking the U.S. off the established Gold Exchange Standard in 1971. With that standard, only the value of the U.S. dollar was pegged to the price of gold and all other currencies were pegged to the U.S. dollar. The change resulted in instability in world currencies and depreciation of the value of the U.S. dollar, as well as other currencies, and decreasing real revenues for OPEC whose producers still priced oil in dollars.

OPEC was slow to adjust to the situation but finally made the decision to price oil against gold.[31] Frustrated negotiations between OPEC and the major oil companies to revise the oil price agreement as well as the ongoing Middle East conflicts continued to stall OPEC's efforts at stabilization through this era.

"Oil Patch"

The major oil-producing regions of the U.S.—Texas, Oklahoma, Louisiana, Colorado, Wyoming, and Alaska—benefited greatly from the price inflation of the 1970s as did the U.S. oil industry in general. Oil prices generally increased throughout the decade; between 1978 and 1980 the price of West Texas Intermediate crude oil increased 250 percent.[32] Although all states felt the effects of the stock market crash and related national economic problems, the economic benefits of increased oil revenue in the Oil Patch states generally offset much of this.

See also

References

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  2. ^ "Oil Squeeze". Time. 1979-02-05. Archived from the original on 7 March 2008. Retrieved 7 September 2013.
  3. ^ Hubbert, Marion King (June 1956). Nuclear Energy and the Fossil Fuels 'Drilling and Production Practice' (PDF). Spring Meeting of the Southern District. Division of Production. American Petroleum Institute. San Antonio, Texas: Shell Development Company. pp. 22–27. Archived from the original (PDF) on 2008-05-27. Retrieved 2008-04-18.
  4. ^ a b Duncan, Richard C (November 2001). "The Peak of World Oil Production and the Road to the Olduvai Gorge". Population and Environment. 22 (5): 503–22. doi:10.1023/A:1010793021451. ISSN 1573-7810. Retrieved 2009-07-11.
  5. ^ Mankiw, N. Gregory; Scarth William M. (2003). Macroeconomics: Canadian Edition Updated. New York: Worth Publishers. p. 270. ISBN 978-0-7167-5928-7. Retrieved 13 November 2009.
  6. ^ "Petroleum Overview, 1949–2008". U.S. Department of Energy. Archived from the original on 3 October 2009. Retrieved 2 October 2009.
    "ABC TV's Four Corners". Australian Broadcasting Company. Archived from the original on 14 October 2009. Retrieved 2 October 2009.
  7. ^ Zittel, Werner; Schindler, Jörg (January 2003). "Future world oil supply" (PDF). L-B-Systemtechnik. p. 11. Archived from the original (PDF) on July 18, 2011. Retrieved 2 November 2009.
  8. ^ Maugeri, Leonardo. The Age of Oil: The Mythology, History, and Future of the World's Most Controversial Resource. p. 113
  9. ^ "The hidden face of oil".
  10. ^ Smith, William D. (17 April 1973). "Energy Crisis: Shortages Amid Plenty". The New York Times. New York. Retrieved 5 September 2016.
  11. ^ Welles, Chris (25 February 1973). "The Energy Crisis". The New York Times. New York. Retrieved 5 September 2016.
  12. ^ a b Oil Embargo, 1973–1974, at US State Department
  13. ^ Barsky, Robert B.; Kilian, Lutz (2004). "Oil and the Macroeconomy since the 1970s". Journal of Economic Perspectives. 18 (4): 115–134. doi:10.1257/0895330042632708.
  14. ^ Perron, P.; University, Princeton; Program, Econometric Research (1988), The Great Crash, the Oil Price Shock and the Unit Root Hypothesis (PDF), Princeton, NJ: Econometric Research Program, Princeton University, archived from the original (PDF) on 15 October 2012, retrieved 15 November 2009
  15. ^ "Monthly Energy Review, April 2016, Figure 11.1a" (PDF). U.S. Department of Energy. 26 April 2016. Retrieved 30 May 2016.
  16. ^ "Oil Squeeze". Time. 1979-02-05. Archived from the original on 1 December 2009. Retrieved 1 November 2009.
  17. ^ Mouawad, Jad (2008-03-08). "Oil Prices Pass Record Set in '80s, but Then Recede". New York Times. Retrieved 2010-04-20.
  18. ^ "Oil Glut, Price Cuts: How Long Will They Last?". Volume: 89 Issue: 7. U.S. News & World Report. 1980-08-18. p. 44.
  19. ^ Oak Ridge National Lab data
  20. ^ Robert D Hershey Jr. (1981-06-21). "How the oil glut is changing business". New York Times. Retrieved 1 November 2009.
  21. ^ Christopher Byron (1981-06-22). "Problems for Oil Producers". Time Magazine. Retrieved 1 November 2009.
  22. ^ Daniel Yergin (1981-06-28). "The Energy Outlook; Lulled to Sleep by the Oil Glut Mirage". Section 3; Page 2, Column 3. New York Times.
  23. ^ C. C. Garvin Jr. (November 9, 1981). "The oil glut in perspective". Annual API Issue. Oil & Gas Journal: 151.
  24. ^ Martha C. White (January 12, 2009). "This Recession Was Brought to You by the Letters U, V and L". The Big Money. Retrieved 2 November 2009.
  25. ^ "NBER Business Cycle Expansions and Contractions". NBER. Archived from the original on 2007-07-17. Retrieved 2008-10-01.
  26. ^ Labor Force Statistics from the Current Population Survey, Bureau of Labor Statistics. Retrieved on September 19, 2009
  27. ^ a b "Bank of England February 2009 Quarterly inflation report" (PDF). Archived from the original (PDF) on 2009-11-15. Retrieved 2009-11-02.
  28. ^ Office for National Statistics, IHYQ series, Gross Domestic Product: Quarter on Quarter growth: CVM SA, Seasonally adjusted, Constant 2003 prices, Updated on 23/ 1/2009, retrieved on 17 February 2009 Archived 30 March 2006 at WebCite
  29. ^ ONS GDP ABMI series
  30. ^ "Fact Sheet on IEA Oil Stocks and Emergency Response Potential" (PDF). International Energy Agency. 2004-01-01. Archived from the original (PDF) on 2009-03-25. Retrieved 7 November 2009.
  31. ^ Hammes, David; Wills, Douglas. (Spring 2005). "Black Gold: The End of Bretton Woods and the Oil-Price Shocks of the 1970s". The Independent Review. v. IX (n. 4): 501–11. Retrieved 3 November 2009.
  32. ^ Angell, Cynthia; Williams, Norman (8 April 2005). "U.S. Home Prices: Does Bust Always Follow Boom?". Federal Deposit Insurance Corporation. Archived from the original on 2010-04-30. Retrieved 8 November 2009.
1970s in Japan

In Japan during the 1970s, the economy was hit by the oil shock and the Nixon shock. Energy consumption dropped and industrial production increased. During the 1970s energy crisis, Japan introduced energy-saving measures and became a hub of miniaturization. The women's liberation movement in Japan, known as ũman ribu, began to gain momentum with feminist groups starting to form in 1970.In November 1973, a tissue shortage in Japan was reported by news agencies.

1980s oil glut

The 1980s oil glut, also known as the 1980's Oil Shagfest was a serious surplus of crude oil caused by falling demand following the 1970s energy crisis. The world price of oil had peaked in 1980 at over US$35 per barrel (equivalent to $106 per barrel in 2008 dollars, when adjusted for inflation); it fell in 1986 from $27 to below $10 ($62 to $23 in 2008 dollars). The glut began in the early 1980s as a result of slowed economic activity in industrial countries due to the crises of the 1970s, especially in 1973 and 1979, and the energy conservation spurred by high fuel prices. The inflation-adjusted real 2004 dollar value of oil fell from an average of $78.2 in 1981 to an average of $26.8 per barrel in 1986.In June 1981, The New York Times proclaimed that an "oil glut" had arrived and Time Magazine stated that "the world temporarily floats in a glut of oil". However, The New York Times warned the next week that the word "glut" was misleading, and that temporary surpluses had brought down prices somewhat, but prices were still well above pre-energy crisis levels. This sentiment was echoed in November 1981, when the CEO of Exxon Corp also characterized the glut as a temporary surplus, and that the word "glut" was an example of "our American penchant for exaggerated language". He wrote that the main cause of the glut was declining consumption. In the United States, Europe, and Japan, oil consumption had fallen 13% from 1979 to 1981, "in part, in reaction to the very large increases in oil prices by the Organization of Petroleum Exporting Countries and other oil exporters", continuing a trend begun during the 1973 price increases.After 1980, reduced demand and increased production produced a glut on the world market. The result was a six-year decline in the price of oil, which reduced the price by half in 1986 alone.

Altamont Pass wind farm

The Altamont Pass wind farm is located in the Altamont Pass of the Diablo Range in Northern California. It is one of the earliest wind farms in the United States. The first wind turbines were placed on the Altamont in the early 1980s by Fayette Manufacturing Corporation on land owned by cattle rancher Joe Jess. The wind farm is composed of 4930 relatively small wind turbines of various types, making it at one time the largest wind farm in the world in terms of capacity. Altamont Pass is still one of the largest concentration of wind turbines in the world, with a capacity of 576 megawatts (MW), producing about 125 MW on average and 1.1 terawatt-hours (TWh) yearly. They were installed after the 1970s energy crisis in response to favorable tax policies for investors.

CPC Corporation

CPC Corporation, Taiwan (Chinese: 台灣中油, literally Taiwan Chinese Petroleum) is a state-owned petroleum, natural gas, and gasoline company in Taiwan and is the core of the Taiwanese petrochemicals industry.

Dalhousie Generating Station

The Dalhousie Generating Station was a 315 MW coal and oil-fired electrical generating station that operated from 1969-2012 in the community of Dalhousie in Restigouche County, New Brunswick.Construction of the plant, a thermal generating station owned and operated by provincial Crown corporation NB Power, began in 1967. The first phase was opened in 1969 when the Dalhousie #1 boiler went on line at 100 MW. It was designed to burn heavy fuel oil. The 1970s energy crisis saw many eastern Canadian power utilities change their focus from oil sourced in the Middle East to local energy sources. As such, construction began in 1975 on the second phase of the plant which opened in 1978 when the larger Dalhousie #2 boiler went on line; at 215 MW, it was designed to burn coal mined in Minto, NB and Sydney, NS.

Energy Park, Saint Paul

Energy Park is a large mixed-use project in Saint Paul, Minnesota's Midway district that began in 1982. The area is bounded by Lexington Parkway on the East, BNSF railroad tracks on the south and Canadian Pacific tracks on the North and Snelling Avenue on the West. It has industrial, commercial, and residential uses. Though not typical of any projects in the Twin Cities, Energy Park is a quintessential 1980s development activity.Saint Paul planners were determined to turn a liability - more than 200 acres of largely disused railroad land in the heart of the city - into an asset. Energy Park was intended as a model urban environment, a product of the mid 1970s' energy crisis. Energy conservation was its theme: people would live and work within the area, most jobs would be energy related, and all buildings would be energy efficient. Little of this actually came to pass, and some critics would consider Energy Park a failure. In 1980 the project received $12.1 million from the federal government as an Urban Development Action Grants.The first few years were certainly not encouraging. Planning and start-up took much longer than municipal officials anticipated. The energy crisis appeared to have ended thus undermining the whole premise behind the "model urban environment". At the beginning Bandana Square, the project's retail center, seemed to be a bust. The condominiums didn't sell well. Job growth, industrial tenants, housing construction - nothing went according to plan.By 1985 Energy Park's future began to look brighter in 1989 was described as "plainly a success", even though it is not exactly what was planned. The first two phases of housing construction were completed and largely occupied. The industrial space was filling in although not all employment was energy related. Bandana Square seemed prosperous. The center would later be turned over to the Saint Paul Port Authority after it lost the Wilder Foundation $9 million. Energy Park was not what city officials envisioned, but it is certainly far better than an abandoned railroad yard.Factors that contribute to the success of Energy Park include the Saint Paul Port Authority's economic strength and industrial marketing skills; the Planning Economic Development's staff creativity in packaging the deal and obtaining substantial and extraordinary federal aid; the involvements of the nonprofit Wilder Foundation in the housing and retail development, in cooperation with the Department of Planning Economic Development; the inclusion of representatives from several district councils in the project's planning; the various agencies' flexibility - including their ability to adapt to the loss of the project's original theme; and finally, George Latimer's leadership as mayor. The Wilder Foundation invested $35 million in Energy Park retail, housing and office developments.The Minnesota Children's Museum was located in the neighborhood from 1985 to 1995.

Energy derivative

An energy derivative is a derivative contract based on (derived from) an underlying energy asset, such as natural gas, crude oil, or electricity. Energy derivatives are exotic derivatives and include exchange-traded contracts such as futures and options, and over-the-counter (i.e., privately negotiated) derivatives such as forwards, swaps and options. Major players in the energy derivative markets include major trading houses, oil companies, utilities, and financial institutions.

Energy derivatives were criticized after the 2008 financial crisis, with critics pointing out that the market artificially inflates the price of oil and other energy providers.

Fan death

Fan death is a well-known superstition in Korean culture, where it is thought that running an electric fan in a closed room with unopened or no windows will prove fatal. Despite no concrete evidence to support the concept, belief in fan death persists to this day in Korea.

Federal Energy Administration

The Federal Energy Administration (FEA) was a United States government organization created in 1974 to address the 1970s energy crisis, and specifically the 1973 oil crisis. It was merged in 1977 with the newly created United States Department of Energy.

Frank Zarb

Frank Gustave Zarb (born February 17, 1935) is an American businessman and former Republican politician. He is perhaps best known as the chairman and ceo of the NASDAQ stock exchange during the dot-com boom of the late 1990s. He is also known for his role as the "Energy Czar" under President Gerald Ford during the 1970s energy crisis.

Fugro

Fugro N.V. is a Dutch multinational public company headquartered in Leidschendam, the Netherlands, that provides geotechnical, survey, subsea, and geoscience services for clients, typically oil and gas, telecommunications cable, and infrastructure companies.

Fugro’s 2014 revenues amounted to €2.6 billion; it is listed on NYSE, Euronext Amsterdam, and is included in the AMX index. It has approximately 13,500 employees in over 70 countries. Mark Heine is CEO and Chairman of the Board of Management and Harrie L.J. Noy is Chairman of the Supervisory Board.

History of the Middle East

Home to the Cradle of Civilization, the Middle East (usually interchangeable with the Near East) has seen many of the world's oldest cultures and civilizations. This history started from the earliest human settlements, continuing through several major pre- and post-Islamic Empires through to the nation-states of the Middle East today.

Sumerians were the first people to develop complex systems as to be called "Civilization", starting as far back as the 5th millennium BC. Egyptian civilization coalesced around 3150 BC with the political unification of Upper and Lower Egypt under the first pharaoh. Mesopotamia was home to several powerful empires that came to rule almost the entire Middle East—particularly the Assyrian Empires of 1365–1076 BC and the Neo-Assyrian Empire of 911–609 BC. From the early 7th century BC and onwards, the Iranian Medes followed by Achaemenid Persia and other subsequent Iranian states empires dominated the region. In the 1st century BC, the expanding Roman Republic absorbed the whole Eastern Mediterranean, which included much of the Near East. The Eastern Roman Empire, today commonly known as the Byzantine Empire, ruling from the Balkans to the Euphrates, became increasingly defined by and dogmatic about Christianity, gradually creating religious rifts between the doctrines dictated by the establishment in Constantinople and believers in many parts of the Middle East. From the 3rd up to the course of the 7th century AD, the entire Middle East was dominated by the Byzantines and Sassanid Persia. From the 7th century, a new power was rising in the Middle East, that of Islam. The dominance of the Arabs came to a sudden end in the mid-11th century with the arrival of the Seljuq Turks. In the early 13th century, a new wave of invaders, the armies of the Mongol Empire, mainly Turkic, swept through the region. By the early 15th century, a new power had arisen in western Anatolia, the Ottoman emirs, linguistically Turkic and religiously Islamic, who in 1453 captured the Christian Byzantine capital of Constantinople and made themselves sultans.

Large parts of the Middle East became a warground between the Ottomans and Iranian Safavids for centuries starting in the early 16th century. By 1700, the Ottomans had been driven out of Hungary and the balance of power along the frontier had shifted decisively in favor of the West. The British also established effective control of the Persian Gulf, and the French extended their influence into Lebanon and Syria. In 1912, the Italians seized Libya and the Dodecanese islands, just off the coast of the Ottoman heartland of Anatolia. In the late 19th and early 20th centuries, Middle Eastern rulers tried to modernize their states to compete more effectively with the European powers. A turning point in the history of the Middle East came when oil was discovered, first in Persia in 1908 and later in Saudi Arabia (in 1938) and the other Persian Gulf states, and also in Libya and Algeria. A Western dependence on Middle Eastern oil and the decline of British influence led to a growing American interest in the region.

During the 1920s, 1930s, and 1940s, Syria and Egypt made moves towards independence. The British, the French, and the Soviets departed from many parts of the Middle East during and after World War II (1939–1945). The struggle between the Arabs and the Jews in Palestine culminated in the 1947 United Nations plan to partition Palestine. Later in the midst of Cold War tensions, the Arabic-speaking countries of Western Asia and Northern Africa saw the rise of pan-Arabism. The departure of the European powers from direct control of the region, the establishment of Israel, and the increasing importance of the oil industry, marked the creation of the modern Middle East. In most Middle Eastern countries, the growth of market economies was inhibited by political restrictions, corruption and cronyism, overspending on arms and prestige projects, and over-dependence on oil revenues. The wealthiest economies in the region per capita are the small oil-rich countries of Persian Gulf: Qatar, Kuwait, Bahrain, and the United Arab Emirates.

A combination of factors—among them the 1967 Six-Day War, the 1970s energy crisis beginning with the 1973 OPEC oil embargo in response to U.S. support of Israel in the Yom Kippur War, the concurrent Saudi-led popularization of Salafism/Wahhabism, and the 1978-79 Iranian Revolution—promoted the increasing rise of Islamism and the ongoing Islamic revival (Tajdid). The Fall of the Soviet Union in 1991 brought a global security refocus from the Cold War to a War on Terror. Starting in the early 2010s, a revolutionary wave popularly known as the Arab Spring brought major protests, uprisings, and revolutions to several Middle Eastern and Maghreb countries. Clashes in western Iraq on 30 December 2013 were preliminary to the Sunni pan-Islamist ISIL uprising.

The term Near East can be used interchangeably with Middle East, but in a different context, especially when discussing ancient times, it may have a limited meaning, namely the northern, historically Aramaic-speaking Semitic area and adjacent Anatolian territories, marked in the two maps below.

Hyperinflation in Brazil

Hyperinflation in Brazil was a fourteen-year period of three-to-four-digit annual inflation rates from 1980 until 1994. It coincided with the period of economic crisis and political turmoil triggered by the 1970s energy crisis during the Brazilian military dictatorship until the conclusion of the main processes of the democratic transition in the country in the late-1980s/early 1990s.

The republic went through several short-lived currencies, including the cruzado, cruzado novo, cruzeiro, and cruzeiro real, before introducing the Brazilian real in 1994 which proved to be a stable currency.

Let there be light

"Let there be light" is an English translation of the Hebrew יְהִי אוֹר‬ (yehi 'or) found in Genesis 1:3 of the Torah, the first part of the Hebrew Bible. In Old Testament translations of the phrase, translations include the Greek phrase γενηθήτω φῶς (genēthētō phōs) and the Latin phrase fiat lux.

List of economic crises

This is a list of economic crisis and depressions.

Mazda Grand Familia

The Mazda Grand Familia is an automobile which was produced by Mazda in Japan from 1971 to 1978. It was sold as the Mazda 808 in some export markets including Asia, Australia, and New Zealand, and as the Mazda 818 in many others. The body style configurations offered were a two-door coupé, a four-door sedan, and a five-door station wagon. The Grand Familia offered only inline four cylinder engines. The largely identical rotary-powered versions were marketed as the Mazda Savanna in Japan, with export markets taking this model as the Mazda RX-3.

The Grand Familia/Savanna were originally intended to replace the smaller Mazda Familia to better compete with the Toyota Corolla, Nissan Sunny, and Mitsubishi Colt. With the onset of the 1970s energy crisis however, the Familia sold better due to its fuel economy. Since Mazda had already developed the Grand Familia/Savanna, it was sent to North America, while it was considered in Japan as an alternative to the Corolla clone, the Toyota Sprinter, Nissan Cherry, and the Mitsubishi Lancer.

Nuclear energy in Luxembourg

The 1970s energy crisis led Luxembourg to briefly consider constructing a nuclear power plant. In 1972 RWE and the government negotiated a project to build a 1,200 MW nuclear reactor along the Moselle river near Remerschen. In 1974 there were already signs that there was little support for the project among public opinion. The opposition to the project grew, and became more organized, ultimately forcing the government to cancel the project at the end of 1977.

Subsequently, the construction of the large French Cattenom Nuclear Power Plant in 1979 close to the Luxembourg border caused tensions between the two countries.

Oil boom

An oil boom is a period of large inflow of income as a result of high global oil prices or large oil production in an economy. Generally, this short period initially brings economic benefits, in terms of increased GDP growth, but might later lead to a resource curse.

Oil crisis

Oil crisis may refer to:

1970s1970s energy crisis

1973 oil crisis, the first oil crisis, in which prices increased 400%

1979 oil crisis, in which prices increased 100%Post 1970sOil price increase of 1990 (the "mini oil-shock"), in which prices increased for 9 months

2000s energy crisisDevelopingPeak Oil

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