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The 1979 (or second) oil crisis in the United States occurred in the wake of the Iranian Revolution. Amid massive protests, the Shah of Iran, Mohammad Reza Pahlavi, fled his country in early 1979 and the Ayatollah Khomeini soon became the new leader of Iran. Protests severely disrupted the Iranian oil sector, with production being greatly curtailed and exports suspended. When oil exports were later resumed under the new regime, they were inconsistent and at a lower volume, which pushed prices up. Saudi Arabia and other OPEC nations, under the presidency of Dr. Mana Alotaiba increased production to offset the decline, and the overall loss in production was about 4 percent.[2] However, a widespread panic resulted, added to catastrophic decisions like U.S. President Jimmy Carter ordering cessation of Iranian imports to the U.S., driving the price far higher than would be expected under normal circumstances.

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On July 15, 1979, President Jimmy Carter outlined his plans to reduce oil imports and improve energy efficiency in his "Crisis of Confidence" speech (sometimes known as the "malaise" speech). It is often said that during the speech, Carter wore a cardigan (he actually wore a blue suit) and encouraged citizens to do what they could to reduce their use of energy. He had already installed solar power panels on the roof of the White House and a wood-burning stove in the living quarters. However, the panels were removed in 1986, reportedly for roof maintenance, during the administration of his successor, Ronald Reagan, and were never replaced.

Carter's speech argued the oil crisis was "the moral equivalent of war". Several months later, in January 1980, Carter issued the Carter Doctrine, which declared that any interference with U.S. oil interests in the Persian Gulf would be considered an attack on the vital interests of the United States.[13] Additionally, as part of his administration's efforts at deregulation, Carter proposed removing price controls that had been imposed in the administration of Richard Nixon before the 1973 crisis. Carter agreed to remove price controls in phases; they were finally dismantled in 1981 under Reagan.[14] Carter also said he would impose a windfall profit tax on oil companies.[15] While the regulated price of domestic oil was kept to $6 a barrel, the world market price was $30.[15]

In 1980, the U.S. Government established the Synthetic Fuels Corporation to produce an alternative to imported fossil fuels. [end exceprt]

Report: Saudis Warned Obama Not to 'Humiliate' Mubarak [excerpt] "With Egypt in chaos, the kingdom is Washington's only major ally left in the Arab world and the Saudis want the Americans to remember that," said a source in Riyadh.

The White House declined to comment on the reports Wednesday, saying that the administration did not divulge what other leaders said to Obama.

However, it later said that Obama had discussed Egypt during a phone call with King Abdullah on Wednesday, saying the U.S. leader stressed the need for a meaningful and lasting political transition.

The news came as testimony gathered by the Guardian newspaper claimed that the Egyptian military, despite maintaining an appearance of neutrality in the ongoing crisis, had secretly detained hundreds and possibly thousands of suspected government opponents since mass protests began weeks ago.

Egyptians continued to demonstrate across the country Wednesday in a 16th day of protests against longtime leader Mubarak despite warnings of a crackdown by the regime if the continued uprising creates chaos.

Obama's most senior national security aides also met with Israel's Defense Minister Ehud Barak on Wednesday to discuss the situation in Egypt. [end excerpt]