United States

In 2006, about 1.5% of the US’ GDP came from oil and gas.

The composition of the United States’ GDP:

Future industries and services: 60%

Industries and services of the industrial age: 20%

Basic industries and services: 20%

General Situation US:

The United States is the world’s third largest oil producer and its production accounts for about 10% of total global production. At the moment the USA owns 1.6% of the worldwide proven oil reserves, which will last at the current level of production for about another 5 years.

About 66% of the consumed oil in the USA has to be covered by imports from other countries. The top US crude oil supplier is Canada (18%), followed by Saudi Arabia (11%), Mexico (10%), Venezuela (9%), Nigeria (8%) and Iraq (3%). In 2006, the US consumed about 24% of the total oil production, while it only has 4.5% of the world's population.

On August 2005 the US congress passed the Energy Policy Act of 2005, which should strengthen the national energy production and to encourage efficiency in energy consumption.

In December 2007 President Bush signed the Energy Independence and Security Act of 2007, which will improve vehicle fuel consumption and help reduce US dependence on foreign oil. Owing to international pressure from treaties such as Kyoto, it is very likely that the United States will try to reach the goals of its energy plan.

In-depth analysis:

At the beginning of the 20th century, coal provided the bulk of the American energy needs. Coal bins and coal fired furnaces were used in most of the urban homes. But over the years, oil furnaces became more popular, not because of it being cheaper but because they were easer and safer. The development of the automobile as a major mode of transport was responsable for a large rise in the consumption of oil.

In 1950, oil consumption exceeded that of coal. Its low cost, ease of transportation, high energy density, and use in internal combustion engines led to an increasing use, particularly after World War II. And as the United States is not able to cover its consumption by its own production, oil imports increased and so its dependence on other oil-producing countries. Consequently the US foreign policy was inexorably drawn into Meddle East politics, supporting Saudi Arabia and patrolling the sea lanes of the Persian Gulf.

The oil crisis in 1973 made energy policy a current topic of discussion. A National Maximum Speed Limit of 88km/h was imposed to help reduce consumption and Corporate Average Fuel Economy standards were enacted to reduce automobile engines. Alternative forms of energy and diversified oil supply were tried to establish. In spite of these efforts, the oil consumption reached its maximum in 2004. One reason was due to lack of awareness in the US population that oil supplies are limited, plus the cheaper price which US consumers paid to use the product.

After the recent rise in oil prices and after it was proved that the oil consumption is one of the reason for the creation of global warming, having an energy policy which reduces consumption of oil became an important part of US politics. Especially since the beginning of 2007, when the Democrats assumed the majority in the US representative chamber.

Since their arrival, new energy policies were adopted to encourage development of alternative and renewable energy in order to reduce dependence on other oil-producing nations.

However due to the small majority which the Democrats hold in the senates the implementation of new energy laws would be rather difficult.

Beyond oil preparations:

As one fourth of the worldwide coal producing companies are based in the US, it is clear that one of the most important alternative energy forms which the US is taking is coal production. However nuclear energy is also becoming more popular.

For now, old reactors will be upgraded, while new ones are being planned. The main problem of this energy source is the final disposal of radioactive waste.

The Energy Independence and Security Act of 2007 signed by President Bush sets its major provisions in an increase in renewable energy research, in higher vehicle fuel economy and renewable fuel standards and in new standards for federal government buildings. This should mandate a 40% increase in US fuel conservation by 2020 and should help reduce overall US dependence on oil.

Furthermore, the US also offers tax credits, loan programs in order to attract renewable energy companies.

Beyond oil summary:

The US is taking important steps in order to reduce foreign oil consumption, although investment in the non oil sector is slow. One reason for the relatively slow reaction has been lack of awareness. This was shown by the fact that concrete action in ordert to tacklet this problem was only taken from 2005.