Oil is, without question, one of the most valuable resources in the world. In fact, this level of value is one of the reasons why we tend to pay top dollar for fuel so that we can keep our cars going strong. Oil prices were even higher, though, which you will discover as you look back at moments in history. This brings us to the topic of the OPEC embargo and here is what Robert Jain, as well as other names in finance, can tell you about it.
Prior to the OPEC embargo of 1973, there was an increasing demand for oil, especially in the United States. Not only was this used to power automobiles, but various machinery, which meant that it was going to take work for said demand to be met. A few years later, in 1973, the Organization of Arab Petroleum Exporting Countries implemented an embargo, which applied to nations such as the United States, the United Kingdom, and Japan.
Once this oil embargo was put in place, production of oil ceased. As names like Bob Jain could tell you, this impacted life for everyone, financially or otherwise. Keep in mind that oil was used to power a number of establishments, which meant that schools, hospitals, and businesses in general couldn't use the power they needed. Due to the embargo in question, many of these businesses closed down and worldwide wellbeing suffered.
Another interesting tidbit about the embargo was how it changed the way that people purchased cars. Up until this point, it was all the rage that buy the latest model, as it was not only trendier but came with more extras. However, during this time, they weren't the best from a fuel efficiency perspective, which was where lesser models thrived. Buyers knew that they had to be conscious of fuel, so it made sense for them to invest in models that used less oil, even if they weren't the greatest status symbols.
The OPEC embargo wasn't without its merits, as it changed the ways that different nations accessed oil. For instance, the United States, which largely relied on oil overseas, started to look into sources that were either national or closer to where they were. What this meant was that they could rely less on OPEC moving forward. Nonetheless, this embargo had a sizable impact and it can be felt in many states to this day.
Prior to the OPEC embargo of 1973, there was an increasing demand for oil, especially in the United States. Not only was this used to power automobiles, but various machinery, which meant that it was going to take work for said demand to be met. A few years later, in 1973, the Organization of Arab Petroleum Exporting Countries implemented an embargo, which applied to nations such as the United States, the United Kingdom, and Japan.
Once this oil embargo was put in place, production of oil ceased. As names like Bob Jain could tell you, this impacted life for everyone, financially or otherwise. Keep in mind that oil was used to power a number of establishments, which meant that schools, hospitals, and businesses in general couldn't use the power they needed. Due to the embargo in question, many of these businesses closed down and worldwide wellbeing suffered.
Another interesting tidbit about the embargo was how it changed the way that people purchased cars. Up until this point, it was all the rage that buy the latest model, as it was not only trendier but came with more extras. However, during this time, they weren't the best from a fuel efficiency perspective, which was where lesser models thrived. Buyers knew that they had to be conscious of fuel, so it made sense for them to invest in models that used less oil, even if they weren't the greatest status symbols.
The OPEC embargo wasn't without its merits, as it changed the ways that different nations accessed oil. For instance, the United States, which largely relied on oil overseas, started to look into sources that were either national or closer to where they were. What this meant was that they could rely less on OPEC moving forward. Nonetheless, this embargo had a sizable impact and it can be felt in many states to this day.
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