United States energy independence
United States energy independence is the concept of eliminating or substantially reducing import of petroleum to satisfy the nation's need for energy. Some proposals for achieving energy independence would permit imports from the neighboring nations of Canada and Mexico, in which case it would be called North American energy independence. Energy independence is espoused by those who want to leave the US unaffected by global energy supply disruptions and would restrict reliance upon politically unstable states for its energy security.
In total energy consumption, the U.S. produces more energy than it uses. In May 2011, the U.S. became a net exporter of refined petroleum products. By 2014, the United States was the world's third largest producer of crude oil, after Saudi Arabia and Russia, and second-largest exporter of refined products, after Russia. In October 2019, the United States first became a net exporter of all oil products, including both refined petroleum products and crude oil. This was in the week ending October 18. During this week of "net exporter of all oil products, including both refined petroleum products and crude oil", "Weekly U.S. Commercial Crude Oil Imports Excluding SPR" were 5,857,000 barrels per day and exports were 3,683,000 barrels per day. In this week of "energy independence", the United States was still importing more crude oil than it was exporting. Weekly Production of Crude Oil for this week totaled 12,600,000 barrels per day. This "energy independence" occurred again during two weeks in December 2019. In 2020, this occurred in 38 weeks. It occurred 11 times in 2021 and it has occurred every week since the week ending March 11, 2022 through week ending May 5, 2023, 68 times. During the pandemic, weekly crude oil production dropped to a low of 9,700,000 barrels per day. As of week ending May 5, 2023, crude oil production had returned to pre-pandemic levels of 12,300,000 barrels per day. By 2021 the US was the world's largest producer.
As of March 2015, 85% of crude oil imports came from, in order of decreasing volume, Canada, Saudi Arabia, Mexico, Venezuela, and Colombia. Nineteen percent of imported oil came from the Middle East. The fraction of crude oil consumed in the US that was imported went from 35% immediately before the 1973 oil crisis, peaked at 60% in 2005, and then returned to 35% by 2013 thanks to increased domestic production from the shale oil boom. Beginning in the 1970s, exports of crude oil were illegal without a permit; in 2013, the United States physically exported a relatively small amount of oil, and only to Canada. The ban was repealed in 2015.
Greater energy self-sufficiency, it is claimed, would prevent major supply disruptions like the 1973 oil crisis and the 1979 energy crisis. Proponents argue that the potential for political unrest in major oil suppliers, such as Saudi Arabia, Venezuela, and Nigeria, is abundant, and often causes great fluctuations in crude oil prices, especially in the short term.
Large individual US pipelines and other fuel infrastructure and extraction projects are controversial issues in US politics.
Historical trend
In the early 20th century the United States became a major oil supplier to the world. World War II prompted a Synthetic Liquid Fuels Program but it did not go beyond research. In mid-century the country shifted from being a major exporter to a net importer. An import quota imposed in 1959 limited imports to a fraction of domestic production until 1973. After the 1973 oil crisis, the United States Department of Energy and Synthetic Fuels Corporation were created to address the problem of fuel import dependency.The US's dependence on foreign oil rose from 26 percent to 47 percent between 1985 and 1989.
According to the Washington & Jefferson College Energy Index, by 2012, American energy independence had decreased by 22% since the Presidency of Harry Truman. The US's imports of foreign oil fell to 36 percent in 2013, down from a high of 60 percent in 2006.
Many proponents of energy independence look to the United States' untapped domestic oil reserves, either known or potential. Those who favor increasing domestic oil production often suggest removing many of the limitations on oil exploration in the Gulf of Mexico, the Arctic National Wildlife Refuge and the outer continental shelf. Foreign dependence is not the only factor in North American energy politics, however; environmental concerns around land and water pollution and greenhouse gases are also matters of controversy.
Approaches
Some proponents of US energy independence promote wider use of alternatives such as ethanol fuel, methanol, biodiesel, plug-in hybrids and other alternative propulsion. A 2013 report published by the Fuel Freedom Foundation said that without a shift to domestic feedstocks for fuel, such as natural gas and biomass, the US would not be able to achieve energy independence. As of 2014, the United States imposed an import tariff of 54 cents a gallon on ethanol fuel. Ethanol fuel in Brazil is produced from sugarcane, which yields much more fuel per acre than the corn used for ethanol production in the United States.In the United States, oil is primarily consumed as fuel for cars, buses, trucks and airplanes. Two thirds of US oil consumption is due to the transportation sector. A national strategy designed to shift all transportation to a combined use of alternative fuels and plug-in hybrids is predicted to make the US independent of petroleum.
North American energy independence
Oil imports are most problematic in domestic politics and energy security when they come from countries that are openly hostile to US foreign policy and interests, are former or potential future rivals or have questionable human rights practices. Sometimes an alternative "North American energy independence" is proposed, by which North America as a unit should be energy independent, but in which the US could still import energy from Canada and Mexico, which are less problematic allies and more tightly economically integrated.A related, less absolute, policy may be called North American energy security. In 2012 in an editorial to Canadian newspaper The Globe and Mail Mexican president elect Enrique Peña Nieto, called North American energy security a "common goal" of Canada and Mexico.
The benefits are argued to be similar to US energy independence—the reduction of North America's energy dependence on unstable regions such as the Middle East and South America and accepting supplies from the reliable North American Free Trade Area, reducing exposure to terrorism abroad; lower balance of trade and foreign exchange stresses on the US economy in an era when suppliers may begin to price oil in euros; the development of renewable energy sources to displace fossil fuels; and the promotion of energy conservation technology exportable to energy-poor nations.
Programs to limit US energy interests by Canada and Mexico
In Canada and Mexico there is also the concern not to have energy policy dictated by the United States, as well as tension over US ownership of energy companies.In 1937 Mexico passed a constitutional amendment to nationalize its oil industry, which led to the creation of Pemex, the national oil company. There have been several proposals to privatize Pemex since, but they have never come to fruition as many Mexicans fear foreign control of this strategic industry.
The 1957 Canadian election was fought partially in response to the 1956 Pipeline Debate which concerned whether or not the government should allow a US-owned company to build a trans-Canadian gas pipeline and whether the route should be entirely within Canada or partly through the United States. The right-leaning Progressive Conservatives and leftist Co-operative Commonwealth Federation opposition parties opposed American involvement in the pipeline while the Liberal government supported it. The Liberals were defeated in the 1957 election.
In 1973 Canada created its own state energy company Petro-Canada. It began operations in 1976, though it bought assets from private companies rather than seizing them as in many other countries. In 1980 the National Energy Program was launched to create oil self-sufficiency within Canada. It attempted to use tax incentives to discourage oil exports to the US, and redirect these towards to the oil importing provinces of Eastern Canada. The Foreign Investment Review Agency was also created to screen foreign takeovers of Canadian companies. These policies were bitterly opposed by the provincial government of Alberta, and were repealed and reversed during the Conservative government of 1984–1993 which sought closer economic ties with the US, including the Canada–US Free Trade Agreement of 1988.
U.S. presidential views
Carter administration
In his Malaise speech, President Jimmy Carter declared that the United States will never again import as much oil as it did in 1977,Bush administration
In his 2006 State of the Union Address, President George W. Bush used the phrase addicted to oil, a phrase widely discussed in the media.Oil imports into the US peaked in 2006, when imports supplied nearly 12 million barrels/day which is 60% of US consumption; they have declined since, due both to increased domestic oil production, and reduced consumption.
Obama administration
In 2011, President Barack Obama released his Blueprint for a Secure Energy Future that aimed to reduce oil dependence by a third, by producing more oil domestically, increasing use of cleaner alternative fuels, and improving efficiency. Obama stated, “The fact of the matter is, is that for quite some time, America is going to be still dependent on oil in making its economy work."In 2012, Obama repeatedly stated that the US had begun "freeing ourselves from foreign oil." Canadian observers noted that his usage of "foreign" did not include Canada. Obama called Canada and Mexico "stable" foreign energy suppliers.