The First Oil Shock? Nixon, Congress, and the 1973 Petroleum Crisis

Abstract

ABSTRACT This article investigates whether the United States had prior knowledge of the 1973 oil crisis instituted by Arab countries in 1973. It argues, using predominantly primary source documents, that as early as 1971, Washington understood the Arab nations were willing to use oil as an economic weapon. Furthermore, government officials had drafted contingency plans to ameliorate the enormous deleterious economic impact. Unfortunately, the gridlocked Congress and the erosion of executive power associated with the unfolding of the Watergate scandal thwarted any possibility of the Nixon Administration’s economic response to these developments being implemented. This article contributes new primary source research and contextualizes the crisis within the framework of a gridlocked Congress to add to the existing debate concerning America’s preparations for and failure to respond to the 1973 oil crisis.