Chaos in Energy Markets Then and Now: 50 Years After the 1973 Arab Oil Embargo

The 1973 oil embargo took hold after Arab OPEC members, angered by U.S. support for Israel in its war with neighboring states, cut exports to the U.S. and other countries. Crude oil prices quadrupled, and the world saw massive changes in the economy, geopolitics and public policy — including a shift in the control of global oil production from Western companies to governments in the Middle East and elsewhere.

Fifty years later, the embargo’s legacy includes vehicle fuel efficiency standards, and greater interests in domestically produced energy, drilling in deep waters and Alaska, nuclear energy, liquefied natural gas, and renewable energy. And today, energy is again in the headlines, with global energy crises triggered by Russia’s invasion of Ukraine and the risks presented by climate change.

Hosted on Oct. 17 at Baker Hall, this conference featured remarks from His Royal Highness Prince Turki Al Faisal Al Saud, former ambassador of Saudi Arabia to the U.S., and the Honorable James A. Baker, III, Baker Institute honorary chair and former secretary of state, along with other former policymakers, industry leaders, and academics. Together, they examined the lessons learned from the embargo and their renewed relevance for today’s energy crises — for countries, policymakers, companies, and the public.

This event was sponsored by the Baker Institute Edward P. Djerejian Center for the Middle East and Center for Energy Studies.

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Agenda

8:00 am	Breakfast
8:30 am	Welcome Remarks Kenneth B. Medlock III, Ph.D. James A. Baker, III, and Susan G. Baker Fellow in Energy and Resource Economics; Senior Director, Center for Energy Studies, Baker Institute Jim Krane, Ph.D. Wallace S. Wilson Fellow for Energy Studies, Baker Institute
9:00 am	Keynote Address Adam Sieminski Senior Advisor to the Board, KAPSARC; Former Administrator, U.S. Energy Information Administration
9:30 am	Panel I — How Did the Embargo Impact Global Energy Markets and Policy? Moderated by: Mark Finley, Fellow in Energy and Global Oil, Center for Energy Studies, Baker Institute Mahmoud A. El-Gamal, Ph.D. Baker Institute Rice Faculty Scholar, Chair in Islamic Economics, Finance and Management, and Professor in Economics, Rice University Sarah Emerson President and Head of Research & Market Analysis, ESAI Energy Ichiro Kutani Director, Energy Security, The Institute of Energy Economics, Japan Robert McNally President, Rapidan Energy Group
10:30 am	Coffee Break
10:45 am	A Perspective from His Royal Highness Prince Turki Al Faisal Al Saud Introduction by: The Honorable James A. Baker, III, Former U.S. Secretary of State and Honorary Chair, Baker Institute His Royal Highness Prince Turki Al Faisal Al Saud Former Ambassador of Saudi Arabia to the U.S.
11:15 am	Panel II — How Did the Embargo Change Geopolitics? Moderated by: Kristian Coates Ulrichsen, Ph.D., Fellow for the Middle East, Baker Institute Raad Alkadiri, Ph.D. Managing Director, Energy, Climate & Resources, Eurasia Group Nathan Citino, Ph.D. Baker Institute Rice Faculty Scholar and Barbara Kirkland Chiles Professor of History, Rice University Sara Vakshouri, Ph.D. Founder, SVB Energy International and SVB Green Access
12:15 pm	Break
12:30 pm	Final Reflections Kristian Coates Ulrichsen, Ph.D. Fellow for the Middle East, Baker Institute Mark Finley Fellow in Energy and Global Oil, Center for Energy Studies, Baker Institute Jim Krane, Ph.D. Wallace S. Wilson Fellow for Energy Studies, Baker Institute
12:45 pm	Networking Lunch