The Global Energy Dilemma

The world is presently in a global energy dilemma. Over 30 billion barrels of oil per year are consumed worldwide. America alone uses over 7 billion barrels of oil each year, and over 56% is imported—that’s up from 42% a decade ago. American consumption of petroleum is expected to increase at a rate of 2% each year.

Dramatic Growth Places Great Pressure on Conventional Oil
Production

As China, India, Pakistan and many other countries continue to modernize and develop, the demand for oil will continue to increase at a record pace. In the last decade alone, the combined oil demand of China, India, and Pakistan increased 89%, and this demand continues to rise.

Many believe that we have reached “peak production” of conventional oil. Peak production is defined as the time when production of the known reserves of conventional oil begins to decline on a worldwide basis.

America’s growing energy needs only compound our dependency problem

National Security
Our nation’s security is at risk. The United States’ military and government leaders are concerned about the safety of our nation because of our dependency on foreign oil.

Every branch of the military relies heavily on oil and petroleum products for jets, tanks, ships, vehicles, equipment and machinery. U.S. troops and military operations are at the mercy of those small, yet oil-rich countries that control the flow of oil.

U.S. Congressman James V. Hansen (R-Utah, retired), is former Chairman of the House Natural Resources Committee and ranking member of the House Armed Services Committee. He expresses grave concerns about the dangers of fuel dependency:

“What do you do in case of a war? Suppose OPEC or Venezuela (not a great friend of the United States) turns down the spigot, and decides not to give us any more fuel.”

The largest consumer of transportation fuels in the nation, the Department of Defense (“DOD”), is actively working to find new fuel supplies to support missions and operations. The DOD has committed to use 200 million gallons per year of fuels derived from unconventional methods in an effort to lessen its dependency on foreign oil.

The Harsh Consequences of Being Dependent on Foreign Oil:
Americans Pay the Price

Rising energy costs are passed on to every American consumer.

Demand for oil is constantly increasing while production has remained the same and will ultimately decline. The effect of this supply and demand relationship has caused dramatic increases in oil prices. In 2007, the price for a barrel of crude oil topped $98.00, translating to record breaking prices at the gas pump of over $3.00 per gallon throughout most of the United States.

Americans are affected in more ways other than the increased cost to fill up the gas tank in their car. The U.S. is dependent upon oil in virtually every aspect of its economy. From manufacturing and transporting consumer products to increased heating and overhead costs for retailers, the rising energy costs are passed to every American family. In fact, the entire U.S. economy, not just our military, is at the mercy of the few oil-rich countries and their leaders, endangering the strength and security of America.