The year of 1973 marks one of the most important turning points in the history of the twentieth century. Prior to 1973, the world had become accustomed to a plentiful supply of inexpensive fossil fuels: coal, petroleum, and natural gas. Developed nations had built economies that depended not just on these fossil fuels, but also on their relatively low cost. Patterns of urban growth in the United States, to take just one example, reflected the fact that the average person could easily afford to drive her automobile many miles a day. The average price of a barrel of oil in 1973, for example, was $2.70 and the average cost of gasoline at the pump about 35¢ a gallon.

A number of factors combined in 1973, however, to change this picture dramatically. The most obvious of those factors was a decision made by the Arab members of the Organization of Petroleum Exporting Countries...