The closure of the Strait of Hormuz during the U.S. war with Iran has sent energy prices way up. Something similar happened back in 1973 during the OPEC oil embargo.
There were actually two energy crises that caused high gas and electric prices nearly the entire decade. The first came from the Arab members of the Organization of Petroleum Exporting Countries [OPEC].
“The United States had supported Israel during the Yom Kippur War that had recently concluded, so as punishment for that, an oil embargo,” said Bill Kemp, historian at the McLean County Museum of History.
Energy prices already were high at the time, in part, because U.S. oil production had peaked in 1970.
“The cost of oil will basically quadruple. Even though the Arab members of OPEC lifted the embargo in the spring of 1974, the U.S. economy continued to struggle under not only price inflation, but also stagnant growth. We get that term 'stagflation' for much of the 1970s,” said Kemp.
A second crisis came in 1979 with the Iranian Revolution and the taking of U.S. hostages. The standout images of the era involve long lines of automobiles lining up to buy gas.
“Locally, we didn't really face that issue so much. There was often the early closure of gasoline stations so local drivers, especially in the Bloomington Normal area, often found it difficult to fill up in the evenings,” said Kemp.
Lower speed limits came into play during the oil crisis. In November 1973, President Richard Nixon called on state governors to save 200,000 barrels of oil a day by setting a maximum speed limit of 50 mph.
That idea gathered little enthusiasm. Nixon signed a legislative compromise of a 55-mph speed limit that lasted until a 1995 Congressional repeal.
The gas shortages, the new speed limit, and spiking gas prices made for an ugly combination in the trucking industry.
You won't need a flashlight to find your way into stores at night for your Christmas shopping, but the energy crisis will be evident in Bloomington-Normal the next four weeks. Reports Friday from the downtown Merchants Association and the Eastland Association indicate merchants are taking steps to cut back on outside Christmas lighting. Normal merchants announced similar steps earlier this week, most Twin City merchants have turned their thermometers back to 63 degrees. — Pantagraph 1973
“You have these kind of wildcat or sporadic trucker strikes in ‘73 and ’74," said Kemp. "Things got a little scary. In early February of 1974, the Illinois governor at the time, Dan Walker, had to mobilize some 1,200 National Guardsmen to patrol major Illinois highways.”
That included U.S. 51, a completed portion of Interstate 74, and Route 66 in the Bloomington-Normal area. Some of those called up were from the Bloomington Armory.
“The Pantagraph newspaper put reporter Bill Wills in a convoy of food trucks running through Central Illinois. Some truckers who were not participating in strikes sometimes faced harassment or the threat of violence, so they would often prefer to travel in packs,” said Kemp.
The oil crisis accelerated the decline of the big three American automakers that lasted into the 1980s. Fuel efficient imports such as Toyota and Honda gained traction.
“In late November 1973, Don Neal of Neal Sales and Service told The Pantagraph, ‘We could sell 100 Toyotas a month if we could get them.’ They were sold out at the time,” said Kemp.
Neal had stopped taking gas guzzling cars in trade the month before.
Energy conservation guidelines drawn up by the Association of Commerce and Industry of McLean County urge merchants to turn off unneeded lights. Insist that employees establish carpools or use public transportation if possible. You missed the board procedures. Urge customers to carry more merchandise to reduce delivery schedules. Inaugurate procedures to help customers get merchandise to their cars. Reduce the use of merchandise demonstrations requiring electrical power and build nonelectrical powered merchandise displays. — Pantagraph 1973
The era also sparked some interest in electric vehicles. There were a few startups. Harold and ‘Bet Dirks of Lincoln, Illinois opened up an Elcar dealership. The company was based in Elkhart, Indiana and sold short-range electric vehicles made by the Italian firm Zagato. They had a short 40–50-mile range, but were marketed as a second vehicle to urban residents.
Another kind of electric car that received some play in Central Illinois was the Citicar, made by Sebring Vanguard in Florida. Illinois State University bought one.
"And what do they use this very lightweight electric car for? To read meters for its parking services,” said Kemp.
The energy crisis did offer some national benefits, said Kemp. Vehicle fuel efficiency standards became a thing. Congress established the Energy Department. And the nation created a strategic petroleum reserve that later presidents have periodically tapped into, including, recently, President Trump.
Other measures didn’t take hold.
“President Nixon attempted to establish permanent daylight savings time in December of 1973. This is a bid to save oil. He thinks permanent daylight savings time, especially in the winter, is going to save about 150,000 barrels of oil a day,” said Kemp.
Parents took a dim view because they didn't want to take their kids to school in the dark.
McHistory is a co-production of WGLT and the McLean County Museum of History. Charlie Schlenker produced this episode.
