Boomtowns return: Decontrolling the oil price fuels U.S. drilling frenzy ///

In March 1971, the Texas Railroad Commission removed the restriction that limited the amount of crude that an operator could produce. This was good for U.S. oil companies, but it created a situation that enabled OPEC, specifically Saudi Arabia, to control worldwide benchmark prices by increasing or decreasing production. In October 1973, the Arab Oil Embargo pushed prices for crude and gasoline up sharply, Fig. 1. Although the embargo lasted about six months, it shook the West’s sense of security and threatened its way of life.

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