America is dependent on other nations for their ability to create energy. The United States is the world’s largest consumer of oil at 18.49 million barrels of oil per day. And it will continue to be that way for the foreseeable future considering the next largest customer of oil only consumes about 60% of what the U.S. does. This makes the U.S. vulnerable to any instability that may arise in the energy industry. In 2011, the world’s top three oil companies were Saudi Aramco (12%), National Iranian Oil Company (5%), and China National Petroleum Corp (4%). The risk associated with these countries being the top oil producers is twofold. One, they are located half way around the world making it an expensive to transport the product logistically to a desired destination. And two, the U.S. has weak, if not contentious,...
“Meanwhile, the United States remains the world's largest consumer and importer of oil. This year the United States will import about 60 percent of the oil that it burns, and the U.S. Energy Information Administration expects that foreign dependence will rise to about 70 percent in 2010.” (Victor pg1)
The author proposes different partial solutions for the "oil problem": a surtax on gasoline consumption, development of mass transport and alternative energy sources, fuel efficiency. In the actual context, these propositions are more or less wishful thinking. A complete change of mind will only arrive when the oil price will reach astronomical heights and when all cheap oil sources will be dried up.
... reforms on the imports and production methods. Along with the millions of acres opened for exploration that would increase self-reliance, it would also lessen the United States’ reliance on oil from Africa, the Middle East and those areas affected by conflict (Klare). As previously mentioned, the military is the biggest consumer of energy in the US. If the American military is relying on imported oil from the conflicted areas in which control the price and supply, then the country as a whole is vulnerable to those who are able to control it. The military continues to work on reducing dependency on foreign fuels so that the nation’s security is safer. By also promoting advances in technology that would enhance the United States’ environment and economy, vulnerability to “violence, corruption and authoritarianism” from the companies overseas would decline.
Gasoline Prices: Is $4.00/ Gallon Good or Bad for America?
The world economies experienced a decline in oil and gas prices starting at the end of 2014. Along with the economic repercussions we are now facing in 2016 from the price drop, economic analysts are faced with a question- Is $4.00 a gallon gas good or bad for America? In the past, Americans have had to deal with the effects and financial burden of high gas prices that at times hovered in the upper three-dollar range and even breached four dollars a gallon.
The United States must re-examine many policies previously accepted as reasonable, especially its own national energy policy. As the largest overall and per capita energy consumer in the world, the U.S. needs to decide upon a reasonable source of energy for the foreseeable future, especially since its energy needs will increase dramatically during that time. With political instability likely to remain the norm in the Middle East, oil continues to be an energy source of questionable reliability; in addition, current estimates of worldwide reserves suggest we may in fact run out of oil entirely in the next fifty years. Natural gas reserves are in fairly short supply too, and costs limit its uses as well. Another major alternative, coal, has become the nation’s leading energy source (providing more than 55% of the country’s electricity), and projected supplies could last for hundreds of years (Sweet 49). However, the tremendous output by coal-fired plants of CO2—the major “greenhouse” gas—along with other atmospheric pollutants makes it equally as undesirable as oil.
The Effects Of Rising Gasoline Prices
Gasoline is a by-product of Crude Oil. It is used as a fuel in cars, lawn mowers, chainsaws, and other machinery. It is a commodity that we require in nearly every aspect of our lives. In 2012, about 133 billion gallons of gasoline were used up in the US alone, with a daily average of about 365.65 million gallons (U.S. Energy Information Administration). In addition, the price of gasoline has increased substantially in the last 10 years (see fig. 1) and this has brought about a lot of cultural changes in the economy, change in driving, and changes in the type of automobiles used.
When Americans fill their tanks with gasoline, two questions come to mind: “How can we save money and why is gasoline extremely expensive? Due to the traumatizing events that occurred in 2008, when gas prices exceeded four dollars per gallon, fear and insecurity came upon many concerning the future increase on gasoline prices. As a result of the aforementioned events, oil drilling in the Arctic National Wildfire has been a constant political debate in the United States. America imports its gasoline from different countries due to the scarcity of resources, but these exporting countries are unvaryingly raising their prices on these barrels of crude oil and natural gas liquids to an extent that negatively affects the economy. This crucial issue has caused the Republican Party to support the drilling in the Arctic National Wildfire Refuge. However, the Democratic Party disagrees and argues with the fact that drilling in the Arctic Refuge may create an insignificant result since it would only be a temporary solution as opposed to a long term benefit. In compliance with the Democratic Party’s notion, the citizens of the world must oppose the oil drilling in the Arctic National Wildfire Refuge because of the unnecessary damage that will be created, the insignificant result, and different alternatives to the issue.
“Fracking provides a source of energy that is not only new but also relatively clean, cheap, without political strings” (www.economist.com, 2014, para. 3). In the article “The Petrostate of America” the debate about fracking, the energy boom throughout the world, and what decisions the U.S. government along with President Obama should make on deciding to lift the ban on exportation of crude oil and restrictions on getting permits to export natural gas are starting to heat up. There are many topics in the article that focus on key principle and indices of economics and based on the decision made by our leaders could possibly determine our fate in an economy that is trying to rebuild. Therefore, throughout this work the goal is to explain how the following three economic principles, people face trade offs, trade can make everyone better off, and governments can improve market outcomes relate to the petroleum boom in the United States. Once the economic principles are explained defining and identifying Gross Domestic Product (GDP), supply and demand, and Consumer Price Index (CPI) will be the focus, so an educated discussion about the meaning the indices have and how they relate to the article can be accomplished. After defining, explaining, and discussing the relationship an appropriate evaluation and forecast will be made.
...n. "Twenty Years after the Embargo US Oil Import Dependence and How It Can Be Reduced." Energy Policy 22.6 (1994): 471-85. Print.