Foreign oil dependence

The United States depends on petroleum, or oil, to fuel vehicles, heat homes, and make items such asphalt, plastics, and solvents. From as early as the ninth century, people used oil, in the form of kerosene, to heat homes. Later, the Industrial Revolution created a large need for oil to power machines. The introduction and accessibility of cars in the twentieth century further increased the demand for gasoline. Much of the oil consumed in the United States in the twenty-first century is used for transportation purposes.

The United States is the largest oil consumer in the world, consuming about 19 million barrels per day (MMbd) in the early and mid-2020s, accounting for about 20 percent of the world's consumption. A barrel holds nearly forty-two gallons of oil. During this time, the US imported more than 40 percent of its oil needs from other countries. The Middle East, Latin America, and North America are major oil-producing areas. Middle Eastern countries such as Bahrain, Iraq, Kuwait, Iran, Qatar, Saudi Arabia, and the United Arab Emirates generate much of the oil in the world. In the early and mid-2020s, the US received most of its petroleum and crude oil imports from Canada (52 percent), Mexico (11 percent), Saudi Arabia (5 percent), Iraq (4 percent), and Brazil (3 percent). While the United States is dependent on other countries to fulfill its oil needs, foreign oil dependence has been declining since 2005.

Overview

Oil is a fossil fuel that is formed from the remnants of deceased plants and animals. Over millions of years, these remains formed fossil fuels. Oil and other fossil fuels, such as natural gas and coal, are found deep in the ground or underwater. Companies extract these fuels from the earth through drilling. Burning fossil fuels produces energy, but this process also releases toxins and gases, such as carbon dioxide, into the air. Too much carbon dioxide in the atmosphere can have an adverse effect on the environment. Fossil fuels are a nonrenewable energy source, which means they cannot be replaced once the reserves are depleted.

According to the Organization of the Petroleum Exporting Countries (OPEC), the world produced more than 81 million barrels of oil every day in the mid-2020s. In 2023, the United States produced a record 12.9 million barrels of crude oil per day, or 4.7 billion barrels of oil annually. However, this was not enough to cover the country's needs, so the United States must import oil from foreign nations to meet the demand.

US dependence on foreign oil began decreasing in 2005. In 2005, the country imported 12.55 MMbd of oil, or 60 percent of US daily consumption. In 2012, the US imported 7.45 MMbd of oil, or 40 percent of US daily consumption. This decline was attributed to several factors, including a decrease in demand and domestic production. During this time, the United States began a new drilling technique called hydraulic fracturing, or fracking. In this process, high-pressure water is injected thousands of feet into the ground to crack rocks and release previously inaccessible oil reserves. This has increased the amount of oil found in states like Alaska, North Dakota, and Texas. This technique is also used to acquire natural gas. The economy also affected the need for oil. The 2008 recession coupled with high gasoline prices and the introduction of fuel-efficient vehicles led to a decline in oil consumption.

Though these factors helped decrease the need for imported foreign oil, the United States remained the world's largest importer of oil. Many people voiced their concerns over relying on other nations for oil and suggested that the United States develop alternative forms of energy.

In 2011, US President Barack Obama vowed to reduce the country's oil imports by one-third by 2020. In 2012, he increased this goal to one-half. To accomplish this, President Obama proposed three ideas. The government increased funding to help develop technology to boost domestic oil production. In addition, the government increased funding to help develop fuel substitutes and increase the production of biofuels and natural gas. The plan also included changing the energy efficiency standards for vehicles. Between 2008 and 2012, US crude oil and petroleum imports decreased by one-third to 260,000 barrels per day—the lowest level seen in nearly twenty years. The plan positively affected the economy, creating nearly thirty-five thousand jobs in the oil and gas industries. It had a considerable impact on the development of newer technologies to aid domestic oil production. The plan also lowered the trade deficit from more than 40 percent in 2009 to 25 percent in 2013.

In 2015, President Obama rejected the proposed Keystone XL pipeline. The proposed construction would have transported oil mined in Canada to Texas. The same year, Congress voted to lift the oil export ban, which had been in place for four decades. In late 2016, the Paris Agreement went into effect, aiming to reduce greenhouse gas emissions in over 190 countries, thereby reducing the world’s reliance on oil. Between 2017 and 2022, oil imports decreased by over 14 percent. However, there was a sharp 14 percent decrease in oil imports in the early 2020s due to the COVID-19 pandemic, followed by a sharp increase in 2023.

In the early and mid-2020s, legislation impacting America’s reliance on oil was wide-ranging and sometimes conflicting. President Trump’s ‘America First’ Energy Plan revived the Keystone XL pipeline project, initiated oil drilling in Alaska’s Arctic National Wildlife Refuge (ANWR), withdrew the US from the Paris Agreement, and reversed many of the emission standards enacted by the Obama Administration. Conversely, the Biden administration vowed to cut emissions, halted drilling in the ANWR, and stopped the Keystone pipeline project. However, drilling for oil on federal lands continued at unprecedented rates during the early 2020s. Russia’s invasion of Ukraine also impacted American dependence on oil imports. Though the US was producing record amounts of oil in the mid-2020s, consumption continued to outweigh production.

Alternatives to Oil

Many people have pointed to alternative forms of energy as the solution to the country's dependence on foreign oil. The United States has been working on developing substitute oils such as ethanol, biodiesel, and algae oil. Ethanol comes from corn, while biodiesel is made from vegetable oils and animal fats. Algae grow very quickly in all types of water and can be transformed into an oil to make a biofuel. In addition to being produced domestically, these renewable energy sources are less harmful to the environment.

The downfall of ethanol and biodiesel is the huge crop yields needed to produce them, which could hurt the agricultural industry. Algae, however, require less space to grow and use fewer resources than other alternative fuels.

Other petroleum alternatives include domestically produced natural gas and propane, but these are fossil fuels that cannot be replaced once their supplies are exhausted. Experts believe the United States must continue to develop oil alternatives and energy-efficient standards to reduce its dependency on foreign oil.

Bibliography

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