The 1970s energy crisis was bad ... this one will be worse

The global energy shortage could be even worse than that experienced in the 1970s. There needs to be collaboration between governments and industry leaders, writes Daniel Yergin

However tight the market for crude oil, there is even more tightness in the refining sector that produces the gasoline, diesel, and jet fuel that people actually use.

Is today’s energy crisis as serious as similar previous ones — particularly the 1970s oil shocks? That question is being asked around the world, with consumers hit by high prices, businesses worried about energy supplies, political leaders and central bankers struggling with inflation, and countries confronting balance-of-payments pressures.

So, yes, this energy crisis is as serious. In fact, today’s crisis is potentially worse. In the 1970s, only oil was involved, whereas this crisis encompasses natural gas, coal, and even the nuclear-fuel cycle.