How the 1973 Oil Embargo Saved the Planet

It’s not often that the oil industry is thrown into turmoil. But when it is, the economic consequences can be catastrophic. Interestingly, the environmental effects aren’t nearly as bad. In fact, some analysts assert that the 1973 oil embargo categorically saved the planet.

Where does this theory come from? When OAPEC proclaimed the embargo world oil prices skyrocketed from US$3 per barrel to almost US$12. Sure, it was bad for motorists and oil thirsty companies, but for Mother Nature it was a much needed period of relief.

Reining in fuel consumption

In the US, the government took drastic measures to slash the nation’s oil consumption. The country imposed strict usage rates, as enforced by the newly established Federal Energy Office.

Pioneering clean energy

While the 1973 oil embargo isn’t generally linked to today’s clean energy advancements, it did play an integral role in forcing the world to explore eco-friendly solutions. The crisis sparked new interest in renewable energy, and fast tracked research into solar and wind power. While Israel was unaffected by the crisis due to its proximity to Sinai oil sources, Harry Zyi Tabor developed the ultra-innovative solar water heater prototype. Today, it’s used in over 90% of Isralei homes, making it one of the greenest nations on the planet.  

Embracing public transport

Many environmentalists assert that drastically reducing the number of cars on roads is the key to slashing greenhouse gas emissions. The oil embargo of 1973 saw new interest in mass transit, which paved the way for the vast public transport networks that exist today.

Inventive oil alternatives

In Australia, rising fuel prices saw people shun oil fired heaters in favour of natural gas and propane powered alternatives. Similarly, the Brazilian government also rolled out a ‘pro alcohol’ project that saw gasoline mixed with ethanol in order to create more affordable and efficient fuel.

Japan refocuses its economy

Without the embargo, Japan wouldn’t have been forced to switch its interests from oil intensive industries to electronics manufacturing. This categorically slashed global emissions, and contributed to a greener planet. Japanese auto manufacturers were also able to gain a bigger market share when American competition dropped. This triggered a spiral in US auto sales, which means less pollution in the United States.

While today OPEC is considered an environmental villain, back in 1973 it unknowingly gave the world a head start in the fight against climate change. In the decade before 1973 global growth in carbon emissions fell from around 5% annually in to less than 2% in the last four decades. While the world produced a record 35.6 billion tons of carbon dioxide in 2012, if emissions had continued to grow at the pre-1973 rate, 2012 emissions would have exceeded 112 billion tons.

Want to know more about new developments within the oil and gas industry? ‘Advance in PID Technology Give Resistance to Humidity Effects and Allow Continuous, Benzene-Specific Monitoring’ explores the arena in more detail, with a specific focus on petrochemicals.