Monday, May 19, 2008

Oil Imports Drop - First Time Since 1977

The US is starting to break its “addiction” to foreign oil as high prices, more efficient cars, and the use of ethanol significantly cut the share of its oil imports for the first time since 1977.

The country’s foreign oil dependency is expected to fall from 60 per cent to 50 per cent in 2015, before rising again slightly to 54 per cent in 2030, according to the head of the Department of Energy’s statistical arm.


The US decline in foreign oil dependency is already becoming more visible, with imports making up 57.9 per cent in the first three months of this year, down from 58.2 last year.

Guy Caruso, head of the US Energy Information Administration, said that that trend was set to continue as people adjusted to high oil prices and the impact of the Energy Independence and Security Act, which became law in December 2007, was felt.

“The 1970s is the last time we saw any significant decline in net import dependency in the US. It shows that markets do work, policy changes do work, technology does work” Mr Caruso said.

Fixed that quote for Mr. Caruso, by the way, he never mentions that 1977 was the year the Trans-Alaska Pipeline came online, gee, perhaps that had something to do with, "the last time we saw a significant decline in net import dependency in the US?" Maybe?


Financial Times -- In Depth - US begins to break foreign oil 'addiction'

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