LITERATURE REVIEW: UNITED STATES ENERGY INDEPENDENCE
The issue of energy independence is a subject of debate that has dominated US politics for several decades. Virtually, every President since Richard Nixon to Barack Obama have pledged allegiance to assisting the United States realize the goal of energy dependence. Policy debates tend to focus on the strategies that could be implemented to minimize US’s dependence on foreign oil. Homans (2012) argues that the United States has remained independent on imported oil despite increasing demands for energy anxiety across the globe. According to Miller (2010), most Americans agree that America’s dependence on foreign oil particularly the Middle East needs to be reduced or eliminated altogether because it possess great danger to the US. The dependence on foreign oil is associated with increased economic costs because billions of dollars flow from the United States to the oil-exporting countries. This dampens the opportunity that could be enjoyed by the United States in terms of revenue that can be obtained from selling alternative energy sources (Trend E-Magazine 2012). Strategies put forward to reduce the dependence of the United States vary and they range from oil conservation, greater domestic production, and increased pursuance of alternative sources of energy (Miller 2010).
Gvosdev (2013) shares similar sentiments citing America’s energy dependence on foreign energy for the past 60 years. Gvosdev (2013) analyzes the convergence between the need to secure economic imperatives to America’s energy prosperity and the strategic energy. Critics see the international military presence in other countries as efforts aimed at securing the prosperity of American energy. However, foreign military missions and deployments increases the military budget in terms of energy costs. Gvosdev (2013) further argues that there is no doubt that the United States has enough energy reserves to not only satisfy the domestic supply but as well to enable the United States to export. These energy reserves are contained in what is referred to as the Shale revolution. The shale oil is believed to be the only way that will enable the US to attain energy independence by 2020. Schachter (2012) agrees with the bounty of shale oil in contributing to energy independence in the United States. Schachter (2012) points out findings by Geologists and government experts who estimated an equivalent of 412.5 billion of oil in form of natural gas (2,500 trillion cubic feet of recoverable natural gas).
The issue of energy independence has been a dominant debate past and current US politics. Rousseau (2012) suggests that all presidential policies seem to agree on one point; the need for the United States to end its reliance of foreign oil. For instance, Obama’s pledge in 2008 while seeking for votes promised Americans that he would eliminate the dependence on Venezuelan oil and Middle Eastern oil within 10 years of election. Rousseau (2012) further cites Mitt Romney’s policy of achieving energy independence if elected president. Other pundits and politicians have divergent views regarding United States’ efforts to achieve energy independence share the same idea. The 2012 Citigroup report identifies the areas and their resource capabilities that the United States can drill to attain energy independence by 2020. These includes Shale Oil, which is capable of producing 1.1 billion barrels/year, Oil Sands that has a capability of producing 1.3 B/Yr., Green Cars which can produce 730 million B/Yr., and Gulf of Mexico with a capability of 1.4 B/yr.
These statistics are supported by a report published by the American Society of Mechanical Engineers that cites US’s capability of overtaking Saudi Arabia as the leading producer of oil by the year 2020. These allegations were made based on the latest findings from the International Energy Agency (IEA) concerning the outlook of world energy. The IEA survey found out that unconventional gas and oil resources could be attributed to increased levels of oil and natural gas in the United States. The IEA argues that the United States is likely to be a leading a net exporter of energy by 2030 coupled with increased possibilities of attaining energy self-sufficient by 2035. The International Energy Agency foresees a situation where the US will overtake Saudi Arabia as the largest producer of oil in the world by the mid-2020s. The World Energy Outlook (2012) projects that the global market for energy is changing rapidly and such changes have far-reaching consequences on the global energy supply. World Energy Outlook (2012) notes the high potential for the production of oil and gas production in United States. The report also argues that advanced technologies coupled with the unused oil and shale gas resources are certain to enable the United States to achieve energy independence.
Chanis (2012) cites recent technological advancements as the key aspects necessary to enable the United States to produce petroleum within its own territories. Based on such resource capabilities, Chanis (2012) argues that realizing energy independence is a dream that can be realized easily. Analysis of US petroleum security identifies critical factors necessary for improving energy independence. However, Chanis (2012) cites several prerequisites for the realization of this objective. These factors are future investment policies with global oil companies and the outcomes of political disputes between environmental interest groups and petroleum companies.
According to Phil Vergler, United States will become energy dependent within a decade; this will be because of technological shift to new oil exploration techniques and natural gas shale fracking techniques (Vergler 2012). For the past decades, oil has played a pivotal function in the world economy. The oil prices have had a big impact on the prices of everything from natural gas to fuel vehicles to plastics and food. In the recent past oil, prices have been in a roller coaster in terms of rising.
There are many aspects, which affect the oil prices. A strong economic power seems to raise the oil demand, while a weak economy has adverse effects on the oil prices; drives up the cost of oil, while a poor economy has an opposite effect. Over the past decades, the US has been reliant on imports for energy supplies. The Energy Information Administration in the US reported that approximately 45 percent of the energy consumed was imports from foreign countries.
Vergler notes that in less than a decade, United States will find itself in the position of an exporter of energy. According to him, US will be energy independent: have more energy than it imports by 2023. The path, which would be used to steer this achievement, would be distinct from the Nixon’s proposed strategy, it is considered being a cheap and clean path to energy independence (Vergler, 2012).
Vergler (2012) goes ahead to point out that this state of energy independence will create an economic environment which the united states would enjoy cheaper energy supplies as compared with other parts of the world. This advantage would give the economy of US, an unparalleled edge over nations such as china, and European countries relying on coal and other sources. This advantage was witnessed in early 2012 when the American firms’ expenditure for natural gas was less than 3 million dollars as compared to South Koreans who were fishing out 13.50. Other exporters of energy ironically would support this advantage; their strong holding role in crude oil and regulation prices of natural gas would strengthen what Vergler calls the 21st American century economy (Vergler, 2012).
This independence in energy supplies would revolutionize the US and other world economies in the next decade (Vergler 2012). As Nye argues, this lead to the strengthening of the American economy, which in the run empowers its economic, power contrary to the image being portrayed of the US economy now. According to Anders Aslund, the energy independence would also have an impact on the foreign policy (Aslund 2012). With the fall in the energy imports, US interest in other nations like the Middle East will decrease. With the realization of shale gas, the United States will quietly shift focus from Eurasian energy issues as it had previously (Anders 2012). This advantage though will not be impregnable and permanent as Vergler says. Other nations will follow the steps of the US and explore the Shale oil and gas (Vergler 2012).
Reference List
American Society of Mechanical Engineers 2013. By the Numbers: U.S. to achieve energy independence. Mechanical Engineering. Pp. 32-33
Aslund, A 2012, The impact on foreign policy? Huge. In The geopolitics of U.S Energy Independence, The International Economy, pp. 22-28.
Chanis, J. 2012. U.S. Petroleum Security and Energy Independence. American foreign policy interests. 34(1): pp. 20-26
Gvosdev, N. 2013. Energy independence a game-changer for US Defense posture. World politics review.
Homans, 2012. Energy Independence; a Short history. Foreign Policy
International Energy Agency 2012. World Energy Outlook 2012. IEA/OECD
Miller, D. 2010. The security costs of energy independence. The Washington quarterly. Pp. 107-119
Rousseau, S. 2012. Can we declare energy independence? Popular Mechanics. 189(6): 1p
Schachter, A. W. 2012. Energy independence and its enemies. American Jewish Committee
Trend E-Magazine 2012. US energy independence Just Ahead. Audio-Tech Business Book
Verleger P. K. 2012. The amazing tale of U.S., The international economy, pp. 8-69
