U.S. ENERGY INFORMATION ADMINISTRATION
WASHINGTON DC 20585

FOR IMMEDIATE RELEASE
September 3, 1998

25th Anniversary of the 1973 Oil Embargo: Where Are We Now?

Since the 1973 oil embargo disrupted U.S. and world energy markets, per capita use of petroleum in America has dropped, but oil imports have risen to record levels, well above those seen 25 years ago.

These and 28 other major energy trends are reported in 25th Anniversary of the 1973 Oil Embargo: Energy Trends Since the First Major U.S. Energy Crisis prepared by the Energy Information Administration at the U.S. Department of Energy. The report is being released today in advance of the embargo's 25th anniversary in October. The year 1973 is still remembered for a sharp run-up in energy prices, energy shortages, and long lines at many gasoline stations.

A doubling of automobile efficiency over the last quarter century has made a major contribution to the 11 percent reduction in per capita use of petroleum, even as new-vehicle horsepower rose 15 percent over the same period.

A number of other trends indicate progress since 1973:

• The world has diversified its sources of oil, with the share supplied by the Organization of Petroleum Exporting Countries (OPEC) dropping from 55 to 43 percent. Part of the resilience of non-OPEC production stems from improved technologies for oil exploration and drilling, which have reduced finding costs.

• After the decontrol of oil and gas markets, the creation of energy futures and options markets helped alert energy suppliers and consumers to anticipated future energy balances.

• The U.S. has built a Strategic Petroleum Reserve for use in energy emergencies. The Reserve currently contains 563 million barrels of crude oil - about 57 days of net U.S. petroleum imports.

• U.S. energy consumption of all fuels per dollar of the Gross Domestic Product (commonly referred to as energy intensity) has dropped by a third.

These signs of progress have been offset by the trend of greater U.S. dependence on foreign oil - rising from 28 percent in the early 1970's to 48 percent in 1997 - and by changes in trends after the collapse of oil prices in the mid-1980's. Since then, energy efficiency gains slowed substantially, total energy use climbed, and OPEC began to regain much of its previous share of world oil markets.

Retail prices for electricity and gasoline are returning to the range that existed before the 1973 embargo. Gasoline prices have dropped 44 percent since their peak in 1981 and electricity prices have fallen 30 percent since their peak in 1982. (All numbers adjusted for inflation.)

This Monday, EIA announced that the national average price for regular gasoline reached 101.3 cents per gallon, the lowest end-of-summer price (not inflation-adjusted) this decade.

25th Anniversary of the 1973 Oil Embargo can be accessed electronically at http://www.eia.doe.gov/emeu/25opec/anniversary.html. Printed copies of the report are available from the U.S. Government Printing Office, 202/512-1800, or through EIA's National Energy Information Center, 202/586-8800. Additional detailed statistics are available in EIA's recently released Annual Energy Review 1997 at http://www.eia.doe.gov/emeu/aer/contents.html.

EIA Program Contact: Henry Weigel, 202/586-1617
EIA Press Contact: National Energy Information Center, 202/586-8800

EIA-98-20

Contact:

National Energy Information Center

Infoctr@eia.doe.gov

Phone:(202) 586-8800

FAX:(202) 586-0727

URL: http://www.eia.doe.gov/neic/press/press105.html

If you are having technical problems with this site please contact the EIA Webmaster at mailto:wmaster@eia.doe.gov