API's Sommers: The Oil Embargo and Staving Off a Repeat of History

Mark Green
Posted October 18, 2023

In a 1948 speech to the British House of Commons, Winston Churchill said those who fail to learn from history are doomed to repeat it. The sentiment was never truer than right now, as we mark the 50^th anniversary of the 1973 Arab oil embargo, mindful of its lessons about American energy strength and security.

API President and CEO Mike Sommers, in remarks at the Hudson Institute, pointed to the ’73 crisis as one that exposed America’s energy vulnerability – launching decades of economic uncertainty and impacts on U.S. foreign policy – and that Washington’s current energy policies must not foster a repeat of 50-year-old history:

“[T]he embargo was a turning point for America’s oil and natural gas industry, as well as U.S. energy policy. It’s a geopolitical lesson that cannot be relegated to textbooks and classrooms. We must learn from the past to prevent today’s leaders from sowing the seeds of the next energy crisis.”

Recent events in the Middle East underscore the importance of American energy to the nation’s economy and security. Sommers said good energy policy, which promotes strong oil and natural gas production now and over the long term, “doesn’t happen with a flip of a switch.” Policymakers must, on a bipartisan basis, chart an energy future that works. Sommers:

“We can come together to get energy policy right. With instability abroad, the world needs leadership, and Americans need the White House and Congress to send a clear and unequivocal signal about the real value of American oil and natural gas. … We cannot squander our strategic advantage and retreat on energy leadership. We already did it once, and we cannot repeat that history. … [E]nergy security is on the line. We have seen what works – with the right signals from Washington.”

Other key points from Sommers’ remarks (as prepared for delivery):

American Oil and Natural Gas and Energy Security

“[T]here’s one clear lesson Washington seemingly refuses to learn: The only true path to lasting energy security is strong and consistent support for oil and natural gas production right here in the United States.”

Energy Weakness Emboldens America’s Foes

“The energy crisis of 1973 taught us many things, but in my mind, the most critical is that American energy strength is a tremendous source of security, prosperity and freedom around the world. In contrast, U.S. energy weakness hinders America and emboldens our adversaries.”

Incoherent Oil and Natural Gas Policy Harms America

“Over the past three years, our nation has seen a profound shift from the federal government to move away from America’s oil and natural gas. Rather than work together toward both energy security and environmental progress, President Biden and his team continue to govern with contradictory policy while vilifying American energy. … Fifty years after the embargo, these mounting restrictions are sowing the seeds of the next energy crisis – with significant ramifications.”

America Needs an Energy Policy Reset

“President Biden has sought an all-of-government approach to increase barriers to domestic oil and natural gas development. Instead of learning from our history, we’re at risk of repeating it. … As American policymakers seek answers, they should know we possess a stabilizing force and a hedge against overseas unrest: American energy from oil and natural gas. … We must reset policies to unlock our energy resources – and strengthen America.”

Taking Seriously the Lessons of 1973

“American oil and gas are needed now more than ever. We have the resources; we have the workers; we have the ingenuity. Let’s take to heart the lessons we learned from 1973 and avoid sowing the seeds of the next energy crisis. We can – and must – work together to get this done.”