Time to Update America’s Energy Security Programs

Kategori : NATURAL GAS ENERGY NEWS, ELECTRICITY ENERGY NEWS, ENERGY AGENDA NEWS, OIL & FUEL SECTOR NEWS - Tarih : 24 January 2021

Even though the United States has achieved the long-sought goal of energy self-sufficiency, energy security remains a strategic and economic challenge. Despite “self–sufficiency,” the U.S. still imports significant quantities of oil and natural gas, as well as solar panels and wind turbine components, and prices forall of these products reflect global market dynamics. Traditional concerns about global supply disruptions remain, and new risks have also emerged.

Domestic energy availability can be impacted by storms, terrorism and cyber threats. Moreover, the rapid growth of renewable energy (and batteries) may help mitigate conventional concerns about fossil fuels but may also reveal new risks. The U.S. and its allies have a cooperative system for dealing with oil supply disruptions, including a large domestic strategic crude oil stockpile, but there is no similar domestic or international framework for dealing with other, emerging risks. The U.S. can aid the transition to a lower-carbon energy system by providing assurance that risks associated with that transition can be understood and managed, both at home and by working cooperatively with allies (as has long been the case for oil security).

According to the Department of Energy, the U.S. achieved a long-standing energy objective in 2019: domestic energy production exceeded domestic energy consumption for the first time since 1952.1 Moreover, the energy mix has become much more diversified, with oil’s share falling from 48% in 1977 to 39% in 2019—the latest full year for which data is available. In addition, the U.S. economy has become much more efficient in its use of energy (including oil): the amount of energy needed to produce a (real) dollar of GDP has fallen by more than 50% since 1980.