What is energy crisis?
This term may refer to the 1979 oil crisis in America, when crude oil prices soared following political upheaval in Iran. This led to panic about availability, and long queues at petrol stations as Americans scrambled to buy fuel for their cars.
Where have you heard about energy crisis?
You may have heard the crisis mentioned in the context of supply and demand. It can be seen as an example of how reduced supply of a product can lead to increased demand (and rising prices).
What you need to know about energy crisis.
The 1979 Iranian Revolution, where the US-backed ruler Mohammad Reza Shah Pahlavi was replaced by an Islamist regime, was the initial spark of the energy crisis. It led to reduced oil production in Iran, meaning worldwide prices rose. As with a similar fuel crisis in 1973, motorists began panic-buying fuel as they anticipated a shortage. However, it had a more positive effect on the oil-producing regions of the US, and encouraged the Government to reduce dependence on fossil fuels.
Find out more about energy crisis.
The 1979 energy crisis was an example of the economic laws of supply and demand.