Americas Dependence on Crude Oil

1
Americas Dependence on Crude Oil

• Eric Rosenberg
• Mr. Haskell
• E-Core World History
• 26 March 2004

2
Background

• In the 1950s the U.S produced 52 of the worlds
  crude oil supply, but by 1977 it had dropped to
  10
• OPEC came to this realization and used it to
  their advantage
• OPEC includes 11 members on 4 continents
• Founding members Venezuela, Iran, Iraq, Saudi
  Arabia, and Kuwait
• October 1973 Arab oil Embargo was imposed
• First intentional oil supply disruption to cause
  major rise in gasoline price.
• Consumption increased, production decreased, and
  our dependence of oil from the politically
  unstable Middle East grew.

3
Current Status

• U.S facing most serious energy shortage since
  1970s, crisis will threaten prosperity, national
  security, change the way we live
• U.S consumes more than ¼ of the worlds oil
  production
• Est. in 04 U.S responsible for 7.5 billion
  barrels of oil
• Experts believe Venezuela's problems are most
  responsible for the current high gas prices.
• Largest supplierSaudi Arabia,
• Pervasive unrest, war, political, religious,
  social problems in region of world result in huge
  fluctuations of oil supply and prices.
• Appears no imminent hope for stabilization in
  this region

4
Analysis

• Crude oil products are a necessity in our society
  
• We use gas for cars, goods and food moving in
  trucks across the country, heat our homes, etc.
• The United States is so desperate to keep the oil
  spigot open and flowing we dont confront Saudi
  Arabia's rulers over their behavior
• Tragic result of dependence on Middle East oil is
  indirect support of terrorism
• If we ever hope to root out terrorism we must put
  an end to political and financial support for
  terrorism which is funded large part by
  ever-increasing expenditures on Middle East oil.

5
Previous Attempts

• The Energy Policy and Conservation Act of 1975,
  passed in hopes of insulating America from future
  crisis
• Oil prices rise people turn to small cars to
  save money
• The SPR, capacity of 700 million barrels crude
  oil largest emergency stockpile in the world
• U.S steadily increased its importation oil from
  Western Hemisphere
• Many oil companies headquartered in Canada being
  aquirred by U.S. companies.

6
Predictions

• Decreased oil supplies will send prices of
  gasoline and everything with oil inputs sky high
• Middle East has ¼ of the worlds oil reserves,
  instability in the region is sure to be a
  continual problem for America.
• U.S. will begin to tap our untouched oil
  resources.
• I predict there will be increased alliances among
  countries in the Western Hemisphere in order to
  have a more stable and secure oil supply.

7
Solutions

• Increase our domestic oil production
• Areas such as Artic National Wildlife, Refuge
  where its believed theres some 10.4 billion
  barrels of oil need to be explored.
• Update fuel efficiency standards of automobiles
• Encourage development of marketable alternative
  fuels
• Promote development of fuel cells and other
  energy technologies that will dramatically cut
  our oil dependence.