Oil Embargo Strain Drives Housing Trends in Arkansas
What happened
The 1973 OPEC oil embargo strained the U.S. economy by causing crude oil prices to nearly quadruple, rising from about $2.90 to $11.65 per barrel. This led to sharp increases in residential heating oil and energy costs. Consequently, earth-sheltered structures were promoted as a way to lower heating and cooling costs by 50-80 percent.
From arkansasonline.com
Why it matters
The historical strain on the U.S. economy due to foreign oil dependency demonstrates how energy price volatility can drive shifts in residential construction and energy consumption patterns. High energy costs resulting from such events can increase operational costs for regulated power providers.
From arkansasonline.com
Who's involved
- ArkansasState where the housing trends and energy costs were reported
- Arkansas GazetteNewspaper that reported on the local housing trends
- EntergyAmerican energy company that provides regulated power
- Arkansas Public Service CommissionGovernment agency that regulates market price volatility
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- EntergySpeculative
Entergy could see increased operational costs due to high energy costs.
- Arkansas Public Service CommissionSpeculative
The Arkansas Public Service Commission may need to respond to market price volatility caused by high energy costs.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- High energy costs may increase Entergy's operational expensesHigh energy costs from the oil embargo may increase Entergy's operational expenses.Likely
- High energy costs may drive shift in Little Rock housingLittle Rock's housing market may shift toward resilient, earth-sheltered alternativesPossible
- How could high energy costs affect Sarah Sanders's management of Arkansas's housing market?High energy costs may drive Arkansas toward earth-sheltered housingPossible
- High energy costs from oil embargo may increase demand for DHS aidEconomic strain from oil embargo may increase demand for social assistance programs.Possible
- High energy costs from oil embargo may force APSC rate reviewThe Arkansas Public Service Commission may need to manage utility rates amid high energy costs.Possible
Keep exploring
The entities involved
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Arkansas
state of the United States of America
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Arkansas Gazette
American newspaper
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