United States President Jimmy Carter signs the Crude Oil Windfall Profits Tax Act.

James Earl Carter Jr. was an American politician and humanitarian who served as the 39th president of the United States from 1977 to 1981. A member of the Democratic Party, Carter served from 1971 to 1975 as the 76th governor of Georgia and from 1963 to 1967 in the Georgia State Senate. He was the longest-lived president in U.S. history and the first to reach the age of 100.

Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term petroleum refers both to naturally occurring unprocessed crude oil, as well as to petroleum products that consist of refined crude oil.

A windfall tax is a higher tax rate on profits that ensue from a sudden windfall gain to a particular company or industry.