(KIWA Staff Photo)
Statewide Iowa (RI) — The phrase “oil crisis” often brings the 1970s to mind, but a University of Iowa energy historian says the U.S. is experiencing another one right now.
UI Professor Tyler Priest, who teaches a course on U.S. Energy Policy, says one echo from that era is the renewed call for a federal windfall profits tax on oil companies. Congress passed such a tax in 1980 during the Carter Administration, and Priest says it didn’t work.
Global oil companies are expected to report their profits this week. U.S. Senator Sheldon Whitehouse, a Democrat from Rhode Island, has introduced the Big Oil Windfall Profits Tax Act, addressing profits tied to the war in Iran. Priest was asked whether such a tax would effective now.
In the 1970s, Middle East conflicts and production cuts led to a quadrupling of petroleum prices, double-digit inflation, widespread gas shortages, and long lines at stations. Priest is fearful about where things are headed now as the conflict in Iran nears its fifth month.
In May, Priest predicted gas prices may not fall back to pre-February levels until December. He says that prediction hasn’t changed.
Priest’s latest book, “Offshore Oildom,” examines the political significance and controversies surrounding U.S. offshore oil and gas extraction.
