How does overseas oil dependency influence

As a result of these changes, in , net petroleum imports had fallen by one-third since to the lowest level in 20 years. And imports are continuing to fall this year as well. We will shortly be at the point where domestic crude oil production exceeds imports on a sustained basis for the first time since the early s. The increased domestic supply combined with increased oil efficiency of the economy reduces vulnerability to global supply disruptions and price shocks, enhancing our national security.

But among its greatest effects are economic. Every barrel of oil or cubic foot of gas that we produce at home instead of importing from abroad means:.

You are here Home Blog. Twitter Facebook Email. There are three basic elements to achieving this goal: Increasing domestic production of oil.

Crude oil production has grown each year the President has been in office to its highest level in 17 years in see chart above. In fact, over the past four years, domestic oil supply growth has accounted for over one-third of global oil production growth. First, oil price volatility hampers American productivity and consumers.

Economic vitality requires stable prices, as spikes in oil prices may reduce output and wages while increasing inflation and interest rates. Most commonly, consumers feel these disruptions at the gas pump.

The transportation sector alone consumes Petroleum facilitates the functioning of these critical transportation networks, and small disruptions may lead to cascading price dumps. As volatile oil prices destabilize the economy, they jeopardize U. Secondly, U. In order to ensure foreign oil security, the U. Many oil-rich Islamist regimes in the Middle East receive de facto support from America in return for producing stable oil, despite conflicting ideologies and interests.

Similarly, estimates show that extended military operations to guard oil supply lines cost the U. This dependency is costly and conflicts with the national security agenda. Lastly, oil dependency undermines military preparedness and effectiveness. The military must complete its missions, and without fuel options, it must endure oil price fluctuations.

Additional fuel costs means the military has to cut costs elsewhere, which have negative impacts on security and military preparedness. The military may reduce consumption by reforming energy-intensive activities, optimizing energy usage, and developing innovative technologies to reduce energy waste, but sequestration budget cuts will slash future investment.

Instead of focusing solely on drilling for more oil, the U. Greater efforts to improve vehicle efficiency through corporate average fuel economy standards CAFE , congestion charges, or fuel taxes can contribute to reducing oil consumption.

A recent report on the November U. This is but one example that our economic recovery and long-term growth is inexorably linked to our reliance on foreign oil. For these reasons we need to kick the oil addiction by investing in clean-energy reform to reduce oil demand, while taking steps to curb global warming.

Our reliance on oil from these countries could have serious implications for our national security, economy, and environment.

The United States imported 4 million barrels of oil a day—or 1. Venezuela is one of the top five oil exporters to the United States, and we imported million barrels of oil from them in As a major contributor to the global demand for oil the United States is paying to finance and sustain unfriendly regimes.

Further, the regimes and elites that economically benefit from rich energy resources rarely share oil revenues with their people, which worsens economic disparity in the countries and at times creates resource-driven tension and crises.

The State Department cites oil-related violence in particular as a danger in Nigeria , where more than 54 national oil workers or businesspeople have been kidnapped at oil-related facilities and other infrastructure since January Attacks by insurgents on the U. Our oil dependence will also be increasingly harder and more dangerous to satisfy.

Burning oil is one of the largest sources of greenhouse gas emissions and therefore a major driver of climate change, which if left unchecked could have very serious security global implications. Recent studies found that the gravest consequences of climate change could threaten to destabilize governments, intensify terrorist actions, and displace hundreds of millions of people due to increasingly frequent and severe natural disasters, higher incidences of diseases such as malaria, rising sea levels, and food and water shortages.

The U. Global warming-induced natural disasters will create emergencies that demand military aid, such as Hurricane Katrina at home and the Indian Ocean tsunami abroad. Developed countries will be responsible for aid efforts as well as responding to crises from climate-induced mass migration.