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 US produces more energy than it uses.[1] In May 2011, the country became a net exporter of refined petroleum products.[2] By 2014, the United States was the world's third largest producer of crude oil, after Saudi Arabia and Russia,[3] and second-largest exporter of refined products, after Russia.[4] 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. It is important to recognize that 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, (the most recent reporting of the EIA) 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.[5] By 2021 the US was the world's largest producer.[6]
As of March 2015, 85% of crude oil imports came from, in order of decreasing volume, Canada, Saudi Arabia, Mexico, Venezuela, and Colombia.[7] Nineteen percent of imported oil came from the Middle East.[8] 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[9] thanks to increased domestic production[10] from the shale oil boom.[11] 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.[12] The ban was repealed in 2015.[13]
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.
U.S. presidential views[edit]
Carter administration[edit]
In his Malaise speech, President Jimmy Carter declared that the United States will never again import as much oil as it did in 1977 (Carter),[22]
Bush administration[edit]
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.[23][24][25] 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.[26]
Obama administration[edit]
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.[27] 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."[27]
In 2012, Obama repeatedly stated that the US had begun "freeing ourselves from foreign oil."[28] Canadian observers noted that his usage of "foreign" did not include Canada.[29] Obama called Canada and Mexico "stable" foreign energy suppliers.[27]
Keystone XL Pipeline - Obama vs. Trump[edit]
The Keystone XL pipeline from Alberta to the Gulf Coast would expedite processing of Canadian oil. In November 2015, Obama rejected the proposal to build this pipeline because of domestic environmental concerns over water quality as well as the general antipathy of the environmental movement to pipeline building, and the production practices in the source (the Athabasca oil sands).[30]
In March 2017, President Donald J. Trump announced the granting of a permit for construction of the Keystone XL pipeline, calling it "the first of many infrastructure projects" that he intended to approve in order to put more Americans to work. The permitting came two months after Trump, only days into his presidency, signed an executive order aimed at reviving the Keystone XL and Dakota Access pipelines.[31]
Trump administration[edit]
In May 2017, President Donald J. Trump promised "complete" independence from foreign sources of oil.[32]
During his administration's Energy Week celebration of June 2017, President Trump announced that he was formally seeking a review of US energy policies, in order to help the Nuclear power industry prosper. Trump also announced that the Interior Department would be kicking off the formal process to expand areas available for offshore drilling of oil and natural gas. He vowed to create "American energy dominance".[33]
In May 2018, it was reported that US liquefied natural gas (LNG) exports had quadrupled. The value of US LNG exports was estimated to reach nearly $5 billion in 2018 and $12 billion in 2019.[34]
In early December 2018, it was reported by Bloomberg that the US had turned into a net exporter of oil "last week", thus breaking nearly 75 continuous years of dependence on foreign oil. Reportedly, the US sold overseas a net of 211,000 barrels a day of crude and refined products such as gasoline and diesel. This, compared to net imports of about three million barrels a day on average previously during 2018 and the prior annual peak of more than 12 million barrels a day during 2005, was confirmed by the US Energy Information Administration.[35] This occurred not because of an increase in crude oil production, as it remained at 11,700,000 per day, it occurred because of an over 1,000,000 barrel per day increase in crude oil exports that came from an equal reduction in Crude Oil Stock. The next week, the Weekly U.S. Imports of Crude Oil and Petroleum Products returned to 1,322,000 barrels per day.
In March 2019, crude oil prices regained momentum after reports showed an unexpected drop in US fuel supplies. The American Petroleum Institute reported domestic crude inventories declined 2.58 million barrels the previous week. The US Energy Information Administration was due to report on the official numbers on domestic supply and demand. However, James Williams, president at WTRG Economics in London, Arkansas said, "These are clearly bullish numbers, and if reinforced it will be more bullish".[36]
It wasn't until January 2020 that Weekly U.S. Field Production of Crude Oil hit 13,000,000 barrels per day and at this level, consistently made the U.S. a net exporter of Crude Oil and Petroleum Products. By May, as the COVID-19 pandemic took hold, production dropped to 11,900,000 barrels per day and then by the end of August to 9,700,000 barrels per day. Even at these low levels of production, the U.S. remained a net exporter due to the suppression of demand. Energy Information Administration
Biden administration[edit]
In January 2021, when President Joseph R. Biden Jr. became president, the United States was still "energy independent" even though domestic crude oil production had declined to 10,900,000 barrels of crude oil per day from its 13,100,000 peak. As demand recovered from the pandemic, the United States lost its "energy independence" until it regained it in the end of 2021, even though, domestic weekly production of crude oil had only grown to 11,500,000 barrels per day. By week ending March 18, 2022 the United States regained its "energy independence" with daily production only increasing by 100,000 barrels of crude oil per day. It has maintained it ever since.
While the Biden administration has often been maligned for its efforts to migrate to renewable energy and its opponents have promised to return the United States to "energy independence", the United States has been "energy independent" for 80 of the 142 weeks of President Biden's term in office and has been continuously since March 2022. By the definition commonly used, The United States is energy independent. (The Trump administration was "energy independent" for 44 of the 208 weeks of its term in office.)