OPEC having doubled prices the day prior, Arab oil producing nations, led by Saudi Arabia, now went further and cut production overall by 5% and then placed an embargo on the United States, the Netherlands, Canada, the United Kingdom, West Germany, Japan, Rhodesia, South Africa, and Portugal. Western oil producers Venezuela nor Ecuador refused to join the embargo.
Congressman Gerald Ford was nominated to be Vice President by Richard Nixon.
Also on that day, President Nixon authorized Operation Nickel Grass, the airlift of weapons to Israel.
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M60 tank being loaded as part of Operation Nickel Grass
The operation revealed severe problems with the U.S. airlift capacity and would likely have not been possible without the assistance of Portugal, whose Azores facilities reduced the need for air-to-air refueling. The transfer of equipment would also leave the United States dangerously short of some sorts of military equipment, including radios, something that was compounded by the fact that the U.S. was transferring a large volume of equipment to the Republic of Vietnam at the same time.
This would directly result in the Arab Oil Embargo, which had been threatened. The embargo commenced on October 17.
U.S. oil production had peaked in 1970. Oil imports rose by 52% between 1969 and 1972, an era when fuel efficiency was disregarded. By 1972 the U.S. was importing 83% of its oil from the Middle East, but the real cost of petroleum had declined from the late 1950s.
The low cost of petroleum was a major factor in American post-war affluence from the mid 1940s through the 1960s. The embargo resulted in a major expansion of Wyoming's oil and gas industry, and in some ways fundamentally completed a shift in the state's economy that had been slowly ongoing since World War One, replacing agriculture with hydrocarbon extraction as the predominant industry.
We often hear a lot of anecdotal information about this topic today.
In this context, it's interesting to note that petroleum consumption is not much greater today in the U.S. than it was in 1973, but domestic production is the highest, by far, it's ever been. Importation of petroleum is falling, but it's also higher than it was in 1973, but exportation of petroleum is the highest it's ever been, exceeding the amount produced in 1973. If experts are balanced against imports, we're at an effective all-time low for importation. In effect, presently, all we're doing with importation is balancing sources.
People hate this thought locally, but with renewable energy sources coming online, there's a real chance that petroleum consumption will fall for the first time since the 1970s, which would have the impact of reducing imports to irrelevancy. Any way its looked at, the U.S. is no hostage to Middle Eastern oil any more.
It turned out that Europe wasn't hostage to Russian hydrocarbons either, so all of this reflects a fundamental shift in the world's economy.
Price has certainly changed over time.
Juan and Isabel Person were sworn into office as the elected president and vice president of Argentina
Judge John Sirica ruled that the Senate Watergate Committee was not entitled to have access to President Nixon's tape recordings, but that the U.S. Department of Justice special prosecutor, Archibald Cox, could subpoena them as evidence.
Motorola Corporation's engineer's filed for a patent on the DynaTAC, the first hand-held cellular telephone. It would be issued two years later and our long modern nightmare would accelerate.
The DynaTAC would not enter production until 1983.
The Mets took game four of the World Series against the A's. I surely would have watched that on the television with my father.
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