Fact #179: August 20, 2001
The Costs of Oil Dependence
Major oil price shocks have disrupted world energy markets four times in the past 30 years (1973-1974, 1979-1980, 1990-1991, and 1999-2000). Each of the first three shocks was followed by an economic recession in the United States.
In the report Costs of Oil Dependence: A 2000 Update, Greene and Tishchishyna indicate that the oil market upheavals caused by the OPEC cartel during the past 30 years have cost the United States about $7 trillion (present value 1998 dollars) in total economic costs, about the same as the total payments on the national debt during the same period.
*First 2 quarters of 2001
Supporting Information
| Year | Gross Domestic Product Growth |
Oil Price (1999 $ per barrel) |
|---|---|---|
| 1970 | 0.18% | 12.26 |
| 1971 | 3.35% | 12.36 |
| 1972 | 5.43% | 11.79 |
| 1973 | 5.77% | 12.94 |
| 1974 | -2.77% | 25.95 |
| 1975 | 1.88% | 27.17 |
| 1976 | 5.57% | 26.97 |
| 1977 | 4.64% | 27.84 |
| 1978 | 5.51% | 27.06 |
| 1979 | 3.18% | 35.53 |
| 1980 | -0.23% | 51.56 |
| 1981 | 2.45% | 59.20 |
| 1982 | -2.03% | 50.40 |
| 1983 | 4.33% | 44.10 |
| 1984 | 7.27% | 41.99 |
| 1985 | 3.85% | 38.03 |
| 1986 | 3.42% | 20.24 |
| 1987 | 3.40% | 24.17 |
| 1988 | 4.17% | 19.16 |
| 1989 | 3.51% | 22.61 |
| 1990 | 1.76% | 26.90 |
| 1991 | -0.47% | 22.27 |
| 1992 | 3.05% | 21.03 |
| 1993 | 2.65% | 18.28 |
| 1994 | 4.04% | 17.01 |
| 1995 | 2.67% | 18.40 |
| 1996 | 3.57% | 21.70 |
| 1997 | 4.24% | 19.57 |
| 1998 | 4.31% | 12.72 |
| 1999 | 4.47% | 17.49 |
| 2000 | 4.99% | 27.66 |
| 2001* | 1.00% | 24.23 |
|
*First two quarters of 2001 | ||
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