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The Year Global Oil Supplies Fell... By 4%

Education

Sign up for my FREE newsletter! - https://www.compoundeddaily.com/ ------ #history #oilcrisis #money Link To Our Other Channel: https://www.youtube.com/c/HowMoneyWorks Written By: Sam Video Created By: Svibe Multimedia Studio Editor: Cardan Media Gatherer: Andrea Rivas Footage Courtesy of: Getty Images Music Provided By: Epidemic Sound 📩 Business Inquiries ➡️ [email protected] - Sources - https://ourworldindata.org/grapher/fossil-fuel-cons-per-capita https://data.worldbank.org/indicator/NY.GDP.PCAP.CD https://www.macrotrends.net/1369/crude-oil-price-history-chart https://fred.stlouisfed.org/series/FPCPITOTLZGUSA https://www.epa.gov/automotive-trends/highlights-automotive-trends-report https://www.eia.gov/dnav/pet/hist/leafhandler.ashx?n=pet&s=mcrfpus2&f=m https://fred.stlouisfed.org/series/WTISPLC https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/UNRATE https://web.archive.org/web/20090624150658/http://dieoff.org/page224.htm https://web.archive.org/web/20091201015034/http://www.time.com/time/magazine/article/0%2C9171%2C946222%2C00.html https://thesoundingline.com/global-per-capita-oil-production-is-lower-than-before-the-shale-boom/ https://ourworldindata.org/grapher/per-capita-oil https://yaleclimateconnections.org/2008/11/jimmy-carters-solar-panels/ ----- In 1979 global oil consumption per capita peaked, and even to this day (almost 50 years later) it has never again fully recovered. This is an especially shocking statistic when you stop to realise that the average person living on earth today is 500% more economically productive than they were back then. In plain english what this means is that since the year 1980, our global economy has become 6 times more fuel efficient, which soouunnds great… but cmon, you already know it wasn’t diligent long term planning or environmental conscientiousness that got us here, it was an economic shock so severe that it literally reshaped the global economy. The oil crisis of the late 70s and early 80s was kicked off by a rapid succession of protests and regime change in Iran which was quickly followed by full scale war across the region. The fighting destroyed infrastructure and slowed oil exports destined for countries in the west that had become very accustomed to having easy energy on demand. Prices more than doubled within just a few months, and as people panicked to get their hands on fuel for their cars, rationing was introduced across the world. But cutting off the circulation of oil also impacted far more than just the morning commute in 1970s landyachts… It was a massive shock to global industry that relied on oil to power their machinery, fuel their trucks and produce their chemicals. All of these costs were eventually passed along to consumers resulting in some of the highest rates of inflation ever seen in advanced economies in modern history, not to mention the most severe economic downturn between the GFC and the great depression. The impacts of what was ultimately a short (and not even particularly major) disruption in global oil supplies would also go on to echo throughout the decades that followed directly impacting things like the savings and loan crisis of the early 1990s not to mention the wider global industrial landscape of the world today. And well yeah… that hinted at perhaps the biggest irony of all in this story… at the height of the greatest oil crisis in history… total oil production was down by less than 5% worldwide, once again proving that learning from history is easy, until there is a profit to be made from ignoring it…

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