Energy Security Improves, But US Still at Risk of Oil Disruptions
By Darren Goode
The U.S. may become the world’s biggest producer of oil and natural gas this year, but it’s still at risk from oil price shocks and supply disruptions because of its reliance on foreign supplies, according to a new analysis.
The U.S. ranks fifth out of 13 countries in oil security, trailing Japan, the United Kingdom, Canada and Germany, according to an Oil Security Index from the Securing America’s Future Energy think tank and the analytical firm Roubini Global Economics.
Though the U.S. score is only modestly better than it registered early 2000, it has improved since hitting a low point in the second quarter of 2008, and gains in the past three quarters are “clear evidence that the trends of increased domestic oil production and improved efficiency are strengthening U.S. oil security, even in a historically high-price environment,” the report said.
“Despite the domestic oil boom, America’s oil security is only middle-of-the-road,” SAFE CEO Robbie Diamond said. While the boom in domestic production has helped the economy, “our nation’s oil dependence leaves the economy dangerously exposed to high and volatile oil prices,” he said.
By posting your comment, you agree to abide by our Posting rules