Reducing vulnerability to oil supply disruption (was: A little gem...)
- Thanks Jack. The perspective is interesting - implying that we
actually have a "choice" of relying on imported oil with its
attendant vulnerability to price and supply disruption, vs. just
pumping the hell out of the reserves we have left and somehow meeting
domestic demand with very expensive but domestically-supplied oil.
That choice disappeared for sure by the late 1970's; yet it still
seems to remain a fantasy in the minds of people who ought to know
better. Of course, if we actually could pump at unlimited rates and
went to 100% domestic supply, US reserves would be truly gone in
about 4 years. And then, we would be importing 100%, rather than 60%
as we do now. Either that or we roll up the carpets and go back to
the stone age right here at home.
Here's what they are saying:
"the U.S. economy realizes hundreds of billions of
dollars in benefits annually by using relatively low cost imported
oil rather than relying on more expensive domestic sources of energy.
By comparison, oil shocks impose large but infrequent economic costs
that, when annualized, are estimated to cost the U.S. economy tens
of billions of dollars per year. More importantly, substituting more
costly domestic production for oil imports without lowering overall
oil consumption would be unlikely to substantially lower the costs of
oil supply disruptions.
--- In energyresources@y..., "Jack Dingler" <weaseldog2001@y...>
> <PRE>Energy Security: Evaluating U.S. Vulnerability to Oil Supply
> and Options for Mitigating Their Effects (Chapter Report, 12/12/96,
> Pursuant to a congressional request, GAO reviewed the effectiveness
> the Administration's 1995 National Energy Policy Plan (NEPP) inreducing
> the vulnerability of the U.S. economy to oil supply disruptions andoil
> price shocks, focusing on: (1) the economic benefits of importing
> compared with the potential economic costs of vulnerability to oiloil
> shocks; (2) the extent to which the U.S. economy's vulnerability to
> shocks will likely change over time given the programs and policiesfactors;
> contained in the Administration's 1995 NEPP and other relevant
> and (3) options for reducing the economy's vulnerability to oilshocks.