Oil and National Security: The Facts

The U.S. Senate is in the midst of debating national energy policy and expects to vote on legislation by early June. Once again, the Senate is deeply divided among those who believe we can achieve energy independence through industry subsidies and new drilling on public lands, and those who believe we must reduce oil consumption through efficiency measures such as increased automobile fuel economy standards.

While Congress has debated these points before, the argument has taken on a new urgency in light of the recent Iraq war, continuing instability in the Middle East, and a slumping economy at home. More and more, it’s no longer just environmentalists arguing for more efficient use of oil. Today, experts in the fields of national security, economic policy, energy and transportation are speaking out on the need to reduce U.S. oil consumption and our economic dependency on unstable regions of the world.

National security and economic experts like former National Security Advisor Robert “Bud” McFarlane are increasingly alarmed by our growing dependence on oil. They see America’s dependence on imported oil as a serious cause of economic vulnerability and a major constraint on foreign policy.

Energy and transportation experts like Professor Marc Ross of the University of Michigan Physics Department say the technology to improve automotive fuel efficiency by as much as 40% is readily available for use with minimal economic impact. Economic experts believe that making the autos more fuel-efficient will make U.S. industries more competitive in the global marketplace.

U.S. Oil Facts

• America consumes nearly 20 million barrels per day. If current trends continue, our oil consumption will grow by more than 20% to over 25 million barrels of oil per day by 2020.



• The U.S. has less than 3% of known world oil reserves and we currently import nearly 60% of our oil with nearly half of that oil coming from members of OPEC. These imports will grow to 70% by 2020.



• Drilling for oil in the Arctic National Wildlife Refuge (ANWR) equals just 6 months of U.S. needs – when it becomes available 10 years from now.



• OPEC recently agreed to cut oil production by 2 million barrels per day, and may impose additional cuts in order to raise prices further. According to the U.S. Department of Energy, every million barrels of oil per day taken out of production increases world oil prices by $3-$5 per barrel. An increase of $10 per barrel would cut U.S. economic growth by 0.2% and boost consumer prices by 0.4%.