Briefings Magazine: ‘Some believe the situation is déjà vu.’ A Tale of Two Oil Crises

 By SIMON CONSTABLE

In recent decades, most people have expected energy to be both reasonably priced and plentiful. Not so in 1973, when the Arab member states of OPEC (the Organization of Petroleum Exporting Countries) imposed an embargo on oil sales to the US and other developed countries. Soon after, Americans faced gasoline shortages and rising inflation that would continue through 1980. Thankfully, shortages and high prices didn’t return for decades—not until earlier this year, when the US and Israel went to war against Iran.

By disrupting oil supplies in the Middle East, the war has sent prices higher, just as we saw in the 1970s. Some observers believe the current situation is like déjà vu. But while these two crises are similar, there are distinct differences between them, says Jay Hatfield, CEO of Infrastructure Capital Advisors.

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