Known as the Arab Oil Embargo of 1973, the Energy Crisis of 1973-1974 was the first time the U.S. experienced the very real possibility it could run out of oil.
After the U.S. provided aid to Israel during the Yom Kippur War in 1973, the Organization of Petroleum Exporting Countries (OPEC) not only increased oil prices but it instituted an oil embargo cutting the U.S. off from Middle East oil resulting in $12 per barrel of oil by the end of 1973, an increase of $8 in less than a year.
Although lifted in 1974, the embargo and the resulting energy crisis wreaked havoc economically on the U.S., creating a recession that plagued the Carter administration through the 1970s. Economists and political scientists studying the after effects of the embargo strongly urged the U.S. government to explore techniques that would place the U.S. in a more oil-independent position.
6 Reasons Why U.S. Energy Independence Is So Important
- Producing our own energy eliminates the pressing need to remain on “friendly” terms with oil-rich Middle Eastern countries that possess anti-democratic ideologies
- Lower energy costs from the elimination of high priced imported oil will stimulate the economy and drive job growth
- Energy independence will strengthen our standing as a super power and provide leverage in dealing with rogue or terrorist nations who threaten global oil supply
- U.S. economy will become less susceptible to damage from volatility in global oil prices providing enabling steadier growth
- U.S. balance of trade will improve further driving US economic and job growth
- Small and medium enterprise (SME), an outsize influence on domestic economic growth and a sector especially susceptible to damage from energy price volatility will benefit
Enhanced Oil Recovery Techniques Will Contribute to U.S. Energy Independence
Enhanced Oil Recovery or EOR is an umbrella term used to describe techniques that facilitate tertiary extraction oil and gas. Commonly known EOR methods include hydraulic fracturing (fracking) and water, CO2 and steam flood injections as well as less costly and more sustainable methods such as plasma pulse well treatment.
Plasma Pulse Technology
Plasma Pulse (PPT), used in hundreds of wells globally is designed to stimulate well production by releasing high energy plasma impulses (like lightning) in the well which clear clogged perforation zones, improving permeability and lowering viscosity of the surrounding reservoir. The well treatment is sustainable in its lack of water consumption and use of chemicals, safe to apply downhole. Next generation PPT tools recently developed deliver enhanced performance and lower treatment cost due to improved ease of operation and wireline compatibility.