Crude Oil Tops $100, Closes in on All-Time Record
Issue of Energy Security Deserves Top-Tier Status This Primary Season
WASHINGTON, Jan. 2 /PRNewswire-USNewswire/ -- As crude oil prices breached the symbolic $100 barrier today for the first time in history, Securing America's Future Energy (SAFE) urged the nation's political leaders to focus on oil dependence as a threat to economic and national security.
"Oil prices are a good indicator of our dependence on petroleum," said Robbie Diamond, SAFE's founder and president. "Almost 70 percent of our oil goes into the transportation sector, which is 97 percent reliant on oil for its energy needs. In other words, there are no readily available substitutes. So as the price goes up, billions of dollars flow out of America and into places like Venezuela, Nigeria, Russia, and the Middle East. With most of the world's crude oil supplies controlled by national oil companies in unstable parts of the world, surging oil prices negatively impact America's strategic position and prosperity."
"We are facing very real dangers, and $100 oil is a warning sign our leaders must not ignore. The economic fundamentals say the price will only continue to rise over the long term. To avoid increasing imports, America needs to become more efficient, utilize alternative energy sources, and start pumping more of our own oil as soon as possible," Diamond said.
"The historic energy legislation recently signed into law is an important step that will improve the demand side of the energy security equation, but our leaders must now muster the political will to address the supply side in a meaningful and responsible fashion. Global economic and political factors are transforming energy security into a top-tier priority during America's presidential primary season."
The U.S. imports approximately 60 percent of its oil each day, and that figure is set to grow in the coming years according to Department of Energy estimates. The price of oil has soared in recent months. To pay for this increasingly expensive energy, U.S. wealth has been flowing to major oil-producing countries at astounding and growing rates. Experts estimate that each $1 increase in the average price of oil costs Americans $4.6 billion each year. A recent study by the Oak Ridge National Laboratories estimated that oil dependence has cost the U.S. more than $4 trillion since 1970.
