23. The oil shock of 1973-74
During the 1973 Yom Kippur War between Israel and the nations of Egypt and Syria, Arab oil-producing countries flexed their economic muscles through the embargo of oil sales to countries which provided aid to Israel. On October 16, 1973, Saudi Arabia, Iran, Iraq, Qatar, Kuwait, and Abu Dhabi all slashed oil production while simultaneously raising prices. By the end of the year, oil prices in the United States skyrocketed. By early 1974 the price of oil in the United States quadrupled. Worse, as far as consumers were concerned, was the lack of gasoline and heating oil. Long lines of automobiles formed at gasoline stations, often to find no gas available.
President Richard Nixon asked for gasoline stations to stop selling gasoline on Saturdays and Sundays, and about 90% complied. The measure, intended to discourage recreational driving, brought an end to the American tradition of a Sunday drive, enjoyed by suburban families since the 1950s. Several states imposed rationing, with odd-even days, based on the last number of a customer’s license plate. Plates ending with odd numbers allowed the vehicle to be fueled only on odd-numbered days. The federal government imposed a national speed limit of 55 miles per hour, a law that remained in effect until 1995. Throughout 1974 shortages of gasoline and heating oil threatened all aspects of the economy and daily life in the United States and in many European countries as well.