Now is the moment – to move away from foreign oil?
According to the last 8 Presidents of the United States, our nation’s dependence on foreign oil is concerning (at best) and threatens our long-term success (at worst?). Each of these Presidents has supported the reduction or elimination of our dependence on foreign oil sources, but none have succeeded. Today, in an article in Yale Environment 360, Professor Michael Graetz discusses the challenges in breaking a 40-year energy policy losing streak. Before the 1970s, the United States met its oil demand with domestic sources – think Texas Tea and Henry Hub oil spot prices – but, as demand has increased, domestic oil production rates have not been able to keep up. Today, we import approximately 3.5 billion barrels of oil each year. And, while the majority comes from Canada and Mexico, we still import 5 million barrels of oil from OPEC countries EVERY DAY. In the face of these staggering numbers, our current President has declared that we must reduce the amount of fuel that we import. On March 30, I wrote a piece about his 4 part plan to reduce US demand of foreign oil.
- Increase domestic oil production
- Implement new natural gas industry incentives
- Develop biofuel resources
- Reduce energy consumption with efficiency
In the thousands of pages of energy legislation and regulations enacted since energy policy came to the fore in the 1970s, Congress has never demanded that Americans pay a price that reflects the true price of the energy they consume. For nearly a decade following the oil embargo of 1973, Congress refused even to allow the price of gas at the pump to reflect the worldwide market price of oil. No one now contemplates requiring gasoline prices to include, for example, the costs of keeping oil moving safely from the Persian Gulf into our gas tanks, or insisting that our electricity prices reflect the costs of coal pollution or of nuclear power safety.