Monday, April 26, 2010

Growing Global Oil Demand Harms U.S. Security And Economy

Photo from Tree Hugger

Quenching Our Thirst for Oil -- Center For American Progress

The national security risks that stem from the United States’ heavy reliance on foreign oil are well documented. One in five barrels of U.S. oil come from countries that the State Department considers to be “dangerous or unstable.” And the cost of this oil will rise as global demand increases. These high prices benefit all petro-states regardless of whether the United States is buying from them or not. The United States doesn’t buy Iranian oil, for example, but a $1 increase in oil prices provides an additional $1.5 billion to the Iranian government annually.

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My Comment: The rest of the world wants the same living standards and opportunities that we take for granted in the West. The engine for this growth will come from energy sources like oil .... and they are doing everything that is possible to tap these resources.

The unfortunate consequence from this race for oil is ever higher prices and tighter supplies. Unless alternative energy sources are found that are just as abundant (and cheaper) than oil, this energy price/supply squeeze will only continue.

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