Module 2: American Energy

American Energy

From the 1920s until 1972, American oil production played a pivotal role in shaping the nation’s economy, driving its industrial expansion and fueling the rise of the automobile and the growth of the suburbs. During this period, the U.S. emerged as a dominant oil producer, and its abundance of cheap energy allowed for the rapid expansion of the nation’s car culture. Gasoline was inexpensive, and cars became accessible to a large segment of the American population. This created a society that was increasingly reliant on automobiles for daily commuting and leisure, leading to the development of a sprawling suburban landscape. The availability of oil helped foster the ideal of energy independence, as the U.S. was largely self-sufficient in meeting its own oil needs. The nation's vast domestic oil fields, particularly in Texas and Alaska, seemed to promise unlimited supplies of cheap gasoline that fueled the nation's economic growth and consumer-driven lifestyle.

However, by the early 1970s, the situation began to change. The rapid expansion of the car culture and the suburban sprawl, coupled with wasteful consumption of resources, began to strain domestic oil production. By 1972, U.S. oil production had peaked, and the country’s growing dependence on foreign oil became more evident. Despite having vast oil reserves, America’s increasing consumption of gasoline, much of it used in large, fuel-inefficient cars, led to rising concerns about future energy shortages. As domestic supplies of oil began to dwindle and demand continued to soar, the U.S. became more vulnerable to disruptions in global oil markets. This would come to a head with the oil crises of the 1970s, which exposed the consequences of over-reliance on cheap energy and led to a reevaluation of energy policy, including efforts to reduce dependence on foreign oil and promote energy conservation.