The origins of oil production in the United States can be traced back to Titusville, Pennsylvania 1859. John D. Rockefeller turned oil into a “Standard” household name.
The origins of oil production in the Middle East can be traced back to Persia in 1908. King Ibn Saud, founder of modern Saudi Arabia was somewhat understated in his quest for oil.
Early Saudi oil production was similar to hosting a dinner party... foreign dignitaries came hungry and the Middle East was quick to learn how to entertain.
One Ford assembly plant and industrial revolution later, America's appetite for oil increased dramatically. World War I and II would prove to be the "coming out" parties for oil as a strategic tool - however it would take a Baby Boom to define oil as a real means to enjoy life.
The term "oil crisis" was founded in 1973 - members of OPEC announced, as a result of the Yom Kippur War, they would no longer ship oil to nations who had supported Israel in its conflict with Syria and Egypt.
Gas lines formed – American’s demanded answers!
Then, like a passing thunderstorm, the lines stopped and oil shined upon us once again.
The 1979 (or second) oil crisis began in the wake of the Iranian Revolution and the Ayatollah Khomeini taking control. The Ayatollah's immediate interest wasn’t oil, so he shut it down and unwittingly started a widespread panic among Saudi Arabia and other OPEC nations. The immediate concern was Iran's stability and willingness as an oil partner. As Mid East oil production stalled - prices rose and shortages, either planned or accidential, were on the horizon.
Gas lines formed and once again American’s demanded answers!
Then, as before, the lines stopped and oil was everywhere.
Today, April fools day, Congress met with top executives of the country’s five biggest oil companies and pressed them to explain why they should continue to get billions of dollars in tax breaks when they made $123 billion last year and motorists are paying record gasoline prices at the pump.
Tomorrow we shall demand answers!
American innocence is applauded, the era of cheep oil is over.
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