Yom Kippur War And Oil: From Crisis to Innovation

Oil has played a central role in fueling both exploitations, nationalistic movements, and wars. However, it has also been a catalyst for critical decisions and investments in energy independence, prompting massive investments in alternative energy sources and technological advancements.

One pivotal event that reshaped the trajectory of the West's approach to oil occurred in the 1970s. In October 1973, during the High Holy Day of the Jewish faith, Yom Kippur, Syrian, and Egyptian forces launched Operation Badr, a massive attack on Israel's southern and northern borders. While the initial phase of the war was disastrous for Israel, the tide soon began to turn as Israeli forces successfully pushed back Syrian forces and launched offensives toward Damascus and across the Suez Canal into Egyptian territory.

As the balance shifted in favor of Israel, the Soviet Union, which was providing military support to Egypt and Syria, initiated negotiations with the United States -- a rare collaboration during the Cold War era. Together, they eventually applied pressure on the warring sides to achieve a ceasefire and a disengagement agreement.

However, the real significance of the Yom Kippur War lies not in the attempts by Washington and Moscow to work together during the Cold War era, nor even in the results of the war, which witnessed an astonishing military reversal as Israel shifted from being attacked to attacking Syria and Egypt. The most unexpected and impressive part was the aftermath of the war.

In October 1973, while the fighting was still going on, Saudi Arabia and the members of the Organization of the Petroleum Exporting Countries (OPEC) made a decisive move to penalize the supporters of Israel (the United States, Netherlands, Portugal, and South Africa) by announcing an oil embargo. The embargo both banned oil exportsto the targeted nations and 5% cut in oil production.

As production was cut back and political uncertainty loomed, the price of oil skyrocketed. The price per barrel rose from $3 to $12. In response to this turmoil, a wave of actions was set in motion, reshaping energy policies and strategies on a global scale.

In the United States, President Nixon unveiled a series of measures to reduce oil dependency in general and on Middle Eastern oil particularly. "Project Independence" emerged, with the goal of making sure the United States had enough energy without having to rely on other countries. One significant change brought about by "Project Independence" was the reduction of speed limits on highways. Lowering speed limits on highways led not only to a fall in fuel consumption but also to a major reduction in the number of traffic accidents nationwide. It also led to the completion of the Trans-Alaska Pipeline System.

The energy crisis sparked a surge of innovative architectural concepts. American architects and engineers joined forces to design buildings that prioritized energy efficiency. These buildings featured better or more advanced insulation, smart climate control systems, and renewable energy integration.

It was also a big turning point for the development of the electrically powered car. Extensive research was conducted into the stability and efficiency of a series of competing systems which laid the basis for the hybrid cars that reached the mass market decades later. Research and investments in electric car technologies laid the groundwork for the future eventually transforming the automobile industry.

Energy became a central political issue. Congress allocated funds for research and development in solar energy. Additionally, they were increasingly sympathetic attitudes towards the nuclear industry, which was perceived as technologically reliable and seen by some as a potential solution to energy problems. However, it's crucial to note that concerns persisted regarding safety, environmental impact, and the management of nuclear waste.

Despite the short-term challenges faced by the West during and after the war, the long-term impact of the conflict and the subsequent oil embargo led to a significant diversification of energy sources, marking a transformative moment in global energy policies.

For more information, watch our video on the Yom Kippur War and its unforeseen consequences.

See also: Frankopan, Peter (2016). The Silk Roads: A New History of the World. Vintage.