Wednesday, January 09, 2013

Energy Independence Is Bad : But Export more? What?

Interesting take on independence from foreign oil imports. The only thing I don't understand is the public hasn't cried out to stop drilling or fracking, in reality they have demanded more but has been stopped by the progressive socialists in Washington, Democrats and environmentalist.

Case in point, production is on the rise in all states where the state controls the land that has fossil resources. Thousands of jobs have been created and billions of new dollars are rolling into the state coffers, and by the way, no damage to the land. dah  Who knew?

But those states the are under the boot of the Dept of the Interior, no drill or fracking or mining. No jobs and no new sources of income to run the state. Who voted for this? What's happened to rational thought, common sense? Is it just the 'low information' voter that's the problem?

Depending on Energy, Not Energy Independent
January 9, 2013
Source: Kenneth P. Greene, "Depending on Energy, Not Energy Independent," The American, December 17, 2012.

Energy independence has long been the dream of American presidents. This is because independence entails freedom from the grip of countries around the world. It entails freedom from price shocks or supply shortages. However, as nice as energy independence sounds, it is an unlikely proposition considering the difficulty in producing domestic oil and the potential disadvantages of declining the many benefits that trade has to offer, says Kenneth P. Green, a senior fellow with Canada's Fraser Institute and a former resident scholar at the American Enterprise Institute.
  • According to the U.S. Energy Information Administration, the United States imports about 11 million barrels of crude oil a day.
  • In June 2010, the United States imported the most oil from Canada at 81,978,000 barrels.
  • In second was Saudi Arabia, at about 40 million barrels.
There are several reasons that the United States is unable to achieve complete energy independence. The first is that nearly all sectors in the American economy rely on fossil fuels. Biofuels and other renewable sources are not produced at a level high enough to replace the demand for fossil fuels.

Second, Americans have reached a consensus that domestic oil production is not worth the environmental harm. The American people have time and time again reaffirmed their desire to preserve environmental quality and as a result have lobbied to pass laws that limit on and offshore drilling.

Third, there are several benefits to trade. For example, the United States enjoys strong partnerships with about 90 different countries that it trades fossil fuels with. More importantly, trade allows the efficient allocation of resources and capital to more productive areas.
Furthermore, the United States also gains from trading because it exports oil products as well. The top two customers for oil exports are Canada and Mexico.

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