Oil and Economic Vulnerability

Cude oil prices, as of last week, are about 2 cents a barrell below the all-time high. Our dependency upon OPEC has not only left the United States vulnerable to geopolitical forces beyond our control but has influenced American policy in the Middle East for the past fifty some odd years. With crude oil prices near $56/barrell and the average price of regular unleaded gasoline selling for more than $2/gallon, our dependence on foreign oil is clearly an economic vulnerability and risk that we must soon remove.

The United States consumes more than 25 percent of the world's oil each year, despite the fact that we control only 3 percent of the world's oil and gas reserves. In the years ahead, imported oil is on track to grow to 68 percent of our total supply by 2025, with U.S. crude production at the lowest level in 50 years.

Our dependence on foreign oil is more than an economic problem. A lot of the money we spend on imported oil is going to nations that support the radical Islamist terroristsagainst whom we're engaged in a global war. The Institute of the Analysis of Global Security estimates that 22 percent of the world's oil is controlled by states that sponsor terrorism and are under U.S./United Nations sanctions. So we're fighting the war on terrorism and paying for both sides of the war. We can't even afford to cover our side. Gal Luft, executive director of the institute said, "On the one hand, we are sending our troops and dollars to fight for freedom and democracy all over the world, and on the other hand, we are sending money to people who don't like us.

So, I think we really need to start working on alternative fuel sources, working harder and faster to build hybrids and maybe start walking and riding bikes more often, which can help take care of another growing problem in this country. We can't afford to waste another quarter century in coming to terms with our dependence on imported oil.