United States Foreign Oil Dependency

918 Words4 Pages
In 1970 oil reserves became more scarce, leading to a decrease in production, while consumption continued to grow rapidly (Wright, R. T., & Boorse, D. F. 2011). In order to fill the gap between rising demand and falling supply of oil, the United States became more and more dependent on imported oil, primarily from Arab countries in the Middle East. (Wright, R. T., & Boorse, D. F. 2011). As the U.S and many other countries became highly industrialized nations, they became even more dependent on oil imports. With demand being higher than the actual amount of supply, prices kept rising reaching a peak of $140 a barrel in 2008. (Wright, R. T., & Boorse, D. F. 2011). The U.S dependency on foreign oil presents many negative impacts on the nation’s economy. The cost for crude oil represents about 36% of the U.S balance of payment deficit. (Wright, R. T., & Boorse, D. F. 2011). This does not affect directly the price of gas being paid by consumers, but the money paid circulates in the country’s economy and affects areas such as; the job market and production facilities. (Wright, R. T., & Boorse, D. F. 2011). In addition to the rise in prices, another negative aspect of the U.S dependency on foreign crude oil is the risk of supply disruptions caused by political instability of the Middle East. According to Rebecca Lefton and Daniel J. Weiss in the Article “Oil Dependence Is a Dangerous Habit” in 2010, the U.S imported 4 million barrels of oil a day or 1.5 billion barrels per year from “dangerous or unstable” countries. The prices in which these barrels are being purchased at are still very high, and often lead to conflict between the U.S and Middle Eastern countries. Lefton and Weiss also add that the U.S reliance on oil from countries ... ... middle of paper ... ...ss with other countries. Instead of importing oil, the U.S should invest in clean-energy technology innovation, which would boost growth and create jobs. Investing in a clean-energy economy is the clear path toward re-establishing our economic stability and strengthening our national security. (Content, T. 2011). Works Cited Content, T. (2011, July 12). Report finds Wisconsin 13th in clean-technology jobs.JSOnline.com. Retrieved April 1, 2012, from http://www.jsonline.com/business/125463128.html Lefton, R., & Weiss, D. J. (2010, January 13). Oil Dependence Is a Dangerous Habit.Center for American Progress. Retrieved from http://www.americanprogress.org/issues/2010/01/oil_imports_security.html Wright, R. T., & Boorse, D. F. (2011). Environmental science: Toward a sustainable future (11th ed., pp. 349-369). Boston: Benjamin Cummings.

More about United States Foreign Oil Dependency

Open Document