<P> The crisis began to unfold as petroleum production in the United States and some other parts of the world peaked in the late 1960s and early 1970s . World oil production per capita began a long - term decline after 1979 . </P> <P> The major industrial centers of the world were forced to contend with escalating issues related to petroleum supply . Western countries relied on the resources of potentially unfriendly countries in the Middle East and other parts of the world . </P> <P> The crisis led to stagnant economic growth in many countries as oil prices surged . Although there were genuine concerns with supply, part of the run - up in prices resulted from the perception of a crisis . The combination of stagnant growth and price inflation during this era led to the coinage of the term stagflation . </P> <P> By the 1980s, both the recessions of the 1970s and adjustments in local economies to become more efficient in petroleum usage, controlled demand sufficiently for petroleum prices worldwide to return to more sustainable levels . </P>

Were the two oil crises in the 1970s linked to deflation or inflation