Last Thursday, January 7, the United States made its first crude oil export in 40 years.
Oil exports from the country were banned in the mid-1970s, but that ban was recently lifted, allowing the country to once again begin trading.
The problematic Arab Oil Embargo started in 1973, when oil-producing Arab nations dramatically limited their oil shipments to the United States in a bid to punish the country for its military support of Israel.
Later, the Arab cartel increased the scope of the embargo to a number of other countries, causing oil process to soar all over the world. By 1974, the price of a barrel of oil had risen from only $3 to almost $12 worldwide.
The high prices caused by the embargo led to a fall in the demand for oil, as many of the effected countries looked to alternatives such as coal, nuclear energy and gas to meet their needs, while oil-producing companies outside of the Middle East increased domestic oil production to meet their energy requirements.
The United States currently produces 9.2 million barrels of oil per day, which equates to roughly 10% of the world’s oil supply. This oil is currently sold for approximately $37 (£25.47) per barrel, and thanks to the lifting of this embargo, the country will now be able to do business with a number of previously off-limits nations, and U.S. oil companies may be able to compete with the likes of Royal Dutch Shell and Fuchs, who make Fuchs Ecocool Ultralife A, all around the world.