February 25 -- When we graduated from the Naval Academy in 1968, the American economic engine was powered by a domestic oil industry in the midst of a boom: American production accounted for one-quarter of the global total. Texas, rather than Saudi Arabia, was the world’s swing producer, and the United States had handled the 1967 Arab oil embargo by increasing production, keeping markets stable.
Times were about to change. Five years after our graduation, with its oil fields producing at full capacity, America found itself utterly unprepared for another oil embargo. This one, orchestrated by the Arab members of the Organization of the Petroleum Exporting Countries cartel, delivered an economic shock that set off nearly a decade of financial turmoil, geopolitical uncertainty and damaging volatility in the global oil market. >>View Article