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.
The United States has had several scares throughout its history in terms of oil, most turn out to be over exaggerations of a small event. However, these scares highlight a massive issue with the U.S. and that issue is the U.S.’s dependence on foreign oil. Why does it matter that our oil should come from over seas? In a healthy economy this probably wouldn’t be as relevant, but the U.S.’s economy is not exactly healthy at the moment. There are 4 things that I would like to address: what the problem is, how it affects us, what some solutions are, and what solutions I feel are best.
Almost every single nation in our world today, the United States included, is extremely reliant on oil and how much of it we can obtain. Wars have been started between countries vying for control of this valuable natural resource. The United States as a whole has been trying to reduce its reliance on foreign oil and has had some success, especially with the discovery of the Bakken formation and projects like the Keystone Pipeline.
Socolow, Robert., Hotinski, Roberta., Greenblatt, Jeffery B., Pacala, Stephen.. "SOLVING THE CLIMATE PROBLEM." Environment10(2004):8. eLibrary. Web. 11 Dec. 2013.
Currently, the most important factor in the rise of gas prices is the increasing cost of crude oil. Unfortunately, the United States has three percent of the world’s oil reserves. (Horsley) In 2009, the United States was third in crude oil production as well as the world’s largest petroleum consumer. (e. I. Administration) Such consumption required and still requires the United States to import petroleum/crude oil from other countries.
In 2004, crude oil producers around the world expected a 1.5% growth in the world’s demand for crude oil. The actual growth rate was more than double the projections at 3.3%. This growth was due to rapidly industrializing of foreign countries such as, China and India. Therefore the lack of crude oil affected the supply of gasoline to consumers at the pump.
Fossil fuels have been proven to be damaging to our environment, economy and has made the United States vulnerable to dangerous and unstable countries by exporting the resources that they have. The U.S. depends on countries like Sadie Arabia for our oil supplies. How would we be affected if Sadie Arabia refused to sell us their oil? Would our oil reserves run out or would we be able to buy from another country? These are scenarios that we need to be concerned about. According to Rebecca Lefton and Daniel J. Weiss in their article “Oil Dependence Is a Dangerous Habit”, the U.S. has increased import of oil in the recent years, creating a bigger deficit in the United States. Our countries deficit has resulted in nationwide budget cuts. The continuation of oil imports with foreign countries is going to create an even larger debt in America. In 2008 our country spent around $150 Billion on oil imports alone (Lefton, R. & Weiss, D.J. (2014) Oil Dependence Is a Dangerous Habit. Retrieved from http://www.americanprogress.org/issues/green/report/2010/01/13/7200/oil-dependence-is-a-dangerous-habit/). Environmentally, the burning of fossil fuels have led to global warming. As most of us know, global warming can cause changes in our clim...
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,...
The United States is in a recession and depends on foreigners to fuel our country. Oil companies are taking advantage of the power they have over gas prices and the economy is at one of the lowest points in all of our history. It can be seen that the way things are going now that change needs to occur for America to get back on its feet. Drastic changes will need to happen if we are going to continue to enjoy living in a very advanced and prominent country. By developing proper offshore drilling techniques, and alternate energy, America could eliminate debt and lessen dependence on foreign oil.
...n. "Twenty Years after the Embargo US Oil Import Dependence and How It Can Be Reduced." Energy Policy 22.6 (1994): 471-85. Print.
In ancient times Babylonians used oil as mortar, Native Americans used oil as a topical medicine, and, before electricity, oil was used to create light. Mankind has been dependant on oil as a resource for generations. It has influenced growth, warfare, and technological advancement, but what if mankind were to run out (Alois)? The possibility of this eventuality was first vocalized by M. King Hubbert who introduced the notion of “peak oil.” When global oil production “peaks” it reaches its greatest output level and then permanently declines (Hubbert). There is much debate as to whether this “peak” exists, has already been passed, or will be passed in the near future. Despite the debate there is one undeniable fact; there is a finite amount of oil since it is a non renewable resource. Considering a sudden systemic collapse of all oil production seems unlikely, oil will probably be replaced gradually. This loss of oil could be positive; possibly less CO2 would enter the atmosphere and global warming may be stalled. However, the success of this transition away from fossil fuels will be largely dependant on the ability of developed nations to manage their time. If the US, or any other nation, is going to be successful, they need to start now.
to jobs moving overseas and the flow of wealth in the energy industry, going towards
The current world dependence on oil leaves much to be said about the impact of Saudi Arabia and the Middle East on foreign policy and international politics. Presently the world's largest consumer of oil, the U.S. depends on Saudi Arabia and much of the Middle East for the energy to run its businesses, its homes, and most importantly, its automobiles. In the past few months U.S. consumers have felt the pressures of increasing gasoline prices as they struggle to commute and live their daily lives. This leaves the U.S. with important decisions to be made on behalf of its citizens and its position in the international realm.
Bayon's first body paragraph illustrates America's economic vulnerability in order to prove the topic of America's dangerous overdependence on oil. We consume more than our domestic oil supply due to being so oil dependent, and as a result the author indicates Washington D.C. is practically forced to do business with hostile countries for oil. This creates economic vulnerability of the United States to oil price spikes and inflation possibilities. In 2008, "The United States imported 4 million barrels of oil daily, or 1.5 billion barrels yearly from "dangerous or unstable" countries at a cost of about $150 billion per year. (www.americanprogress.org)." These oil prices of $150 billion dollars per year can be decreased if hydrogen fuel cells were in greater use. As a result of the laws of supply and demand, the United States will have no power over the increasing prices o...
This rise in prices was real problem for the United States because they had no spare production to make up for the lack of Arab oil. Inside the U.S., the public suffered greatly because of the popularity of suburbia which in turn created a large dependency on oil to go anywhere. Therefore, the OPEC shock was detrimental to the life of the American citizen during its duration. People became very aware of the importance of oil, its price, and its availability. Thus there became an especially strong political pressure on companies, which promoted “equal suffering” and “fair share” principles to promote diversion. The king of Iran came up with a new basis for oil prices and it won app...
Vergragt, Philip J., and Halina Szejnwald Brown. "Sustainable Mobility: From Technological Innovation to Societal Learning." Journal of Cleaner Production 15.11-12 (2007): 1104-15. Web.