Availability of Oil for U.S.

AVAILABILITY OF OIL FOR THE U.S.A. : THREE TRUTHS

1. THE U.S. IS AN OIL DEPENDENT NATION. We were about 20% dependent on foreign oil imports in the early 1970’s and today we’re about 70 % dependent on foreign oil imports. Today, our dependence still seems to be growing.

2. THERE IS NO COMPREHENSIVE PLAN. Since the early 1970’s and America’s first brush with limited oil supplies thru an embargo there has been no comprehensive plan to remove or substantially reduce our oil dependence. That’s no comprehensive plan at the “do-able”/ governmental level for the better part of a half-century.

3. OIL IMPORTS ARE BANKRUPTING US. The cost of foreign oil imports is something on the order of 600 billion dollars per year. We’re paying for this oil with borrowed money and it’s bankrupting us.

THREE OVERWHELMING PROBABILITIES

1. CURRENT WORLD OIL PRODUCTION. Current world oil production levels appear to be roughly equal to current demand. We say “ roughly “ because there seems to be some differences with demand slightly exceeding supply. The future, both short and long term, argues for demand exceeding supply to an ever increasing degree with the attendant competition for this resource resulting in higher prices.

2. NO SHORT TERM FIX. No contemplated effective action whether drilling, technological innovation, or new/changed fuels , can provide us with substantial relief from our present situation within the next ten years.

3. THE PRUDENT HOME. It’s again going to fall to the individual family to cope with the effects of what promises to be the near-term, at least, challenges brought about by America’s oil dependence.

We’ll talk about some of the specific things the individual family can do to deal with the effects of oil dependence this coming Friday, July 24.

Keep your eyes on the horizon.