The Opec Oil Price Shock Crisis (1973) And The Actions Taken By The United States

Factor That Contribute to The Oil Change

Abstract

The OPEC Oil Embargo (1973) was precipitated by the Yom Kippur War. The United States was the first country to be sanctioned by Saudi Arabia, Libya, and other Arab countries on October 19, 1973 for its political and military support for Israel (particularly through the delivery of military equipment and arms, which played a key role in Israel's wars against neighboring countries). The 1973 Oil Embargo put a strain on a United States economy that had become increasingly reliant on foreign oil. The research is conducting to analyse the The Opec Oil Price Shock Crisis (1973) and Impact to United States of America. This study has two objectives. First, to identify the factor contribute to the 1973 OPEC Oil Price Shock Crisis and second, to analyse the actions taken by United States of America to stabilize the crisis. The concept of national interest is used to support the action of United States of America in solving the the crisis. The study is being carried out using a qualitative approach, including data gathered from secondary sources. The secondary data in this study also consists of printed and digital material gathered from articles and books. Findings of the study are, first, US intervention during the Arab-Israeli war has contributed to the factors for the crisis to happen. Second, an initiative called "Project Independence" which issued several new policies to control the economic situation during the crisis are well planned. This study concludes that the Government at that time succeeded in overcoming the problem of the crisis which was initiated by themselves and creating a peaceful atmosphere again to the United States.