Lessons learned in ’70s have made US, world economies less vulnerable to oil shocks
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The world economy is experiencing a surge in oil prices due to war in the Middle East, but the US and global economies are less vulnerable to oil shocks than they were in the 1970s. Changes made over the past five decades, such as increasing energy efficiency and reducing dependence on Middle Eastern oil, have limited the economic fallout from the war.
The world economy is facing a surge in oil prices due to war in the Middle East. Oil prices are driving up the cost of gasoline, diesel, and jet fuel. However, the US and world economies are less vulnerable to oil shocks than they were in the 1970s. In the 1970s, oil accounted for almost half of world energy supplies, but by 2023, oil's share had fallen to 30%. The US has weaned itself away from dependence on foreign oil, becoming a net petroleum exporter by 2019. The world still uses more oil than ever, but a much bigger share of global energy comes from other sources, such as natural gas, nuclear, and solar.
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