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" "The 1973 was the precipitating incident of the OPEC embargo. On October 6, Egyptian and Syrian forces caught the Israeli military off-guard on the most solemn Jewish holiday, when many soldiers were home with their families. Because the Arab-Israeli dispute was commonly viewed as yet another cold war proxy battle, the United States and its allies naturally lined up behind Israel against the Soviet-sponsored aggressors. Egypt’s President Anwar Sadat implored the Saudis and other Muslim states to use the “oil weapon” against Israel’s allies. On October 12, the Saudi-led OPEC demanded of the various Western companies doing business in the Middle East, including Aramco, a 100 percent increase in the posted price of their cartel's oil. The companies stalled for time. On October 16, the Persian Gulf region OPEC members broke off negotiations with the Western oil companies and announced that thereafter they would set prices themselves. On October 17, the Israelis gained the upper hand on the battlefield, thanks in large part to aggressive American resupply efforts, and began to push the Egyptians back across the and the Syrians out of the Golan Heights. [On] the same day, the Arab oil ministers announced an oil embargo on the United States, while increasing prices by 70 percent to western Europe. Overnight, the price of a barrel of oil to these nations rose from $3 to $5.11. On October 19, President Richard M. Nixon announced a military aid package for Israel. The following day, Saudi Arabia retaliated by announcing a total cutoff of oil exports to America.
James Howard Kunstler (born October 19, 1948, New York City, New York) is an American author, social critic, public speaker, and blogger.
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Wal-Mart will not be able to profitably run its “warehouse on wheels” when the price of oil fluctuates chronically. […] We will never again experience the explosion of products, choices, and nonstop marketing that characterized the… twentieth century. The public may look back on the big-box shopping era with deep and mournful nostalgia, but we are apt to discover that happiness is still possible without the extraordinary advertising-driven compulsive materialism of recent decades. We will still have commerce. We will have [a] trade. There will be shopping. We will have… medium of exchange. But we are not going to live in a perpetual blue-light special sale of cornucopian wretched excess.
Because… systems are self-organizing in the face of circumstance, the big questions are how much disorder must we endure as things change, and how hard will we struggle to continue a particular way of life with no future? […] The… economy of the decades to come will center on farming, not high-tech, […] “information,” or “services,” or space travel, […] tourism, or finance. All other activities will be secondary to food production, which will require much more human labor.
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In any case, it is human nature to consider a place “home” if you were born there, […] have family there, or have spent some portion of your life there, and people are naturally reluctant to leave home. I daresay that many Americans now living in the Southwest will not be disposed to understand what is really happening—that the carrying capacity of their home region has been suddenly and drastically reduced—and they will hunker down hoping for a return to better times.
The vested owners of all those sun-drenched tract houses may stick around for a while and fight over the region, perhaps thinking that they are reenacting the great historical dramas of the nineteenth century—such is the long-term effect of canned entertainment on the collective imagination. The violence and loss of resources will surely send some American citizens fleeing. After a while, it will be obvious to even the staunch defenders that places like Los Angeles, Las Vegas, Phoenix, Tucson, and Albuquerque will never again support the populations that were possible during the height of the cheap-oil blowoff in the late twentieth century. They will then pack up and move elsewhere, sacrificing their houses and ties to a disintegrating community. These new refugees may move into careers that they never could have conceived of twenty years earlier, when they were young college graduates: farmer, farm laborer. Wherever they go, they are going to discover a nation preoccupied with food production above all other activities.