Energy Policy of The United States - Energy Independence

Energy Independence

See also: 1973 oil crisis and U.S. Energy Independence

The 1973 oil crisis made energy a popular topic of discussion in the US. The Federal Department of Energy was started with steps planned toward energy conservation and more modern energy producers. A National Maximum Speed Limit of 55 mph (88 km/h) was imposed to help reduce consumption, and Corporate Average Fuel Economy (aka CAFE) standards were enacted to downsize automobile categories. Year-round Daylight Saving Time was imposed, the United States Strategic Petroleum Reserve was created and the National Energy Act of 1978 was introduced. Alternate forms of energy and diversified oil supply resulted.

The United States receives approximately 84% of its energy from fossil fuels. This energy is used for transport, industry, and domestic use. The remaining portion comes primarily from Hydro and Nuclear stations. Americans constitute less than 5% of the world's population, but consumes 26% of the world's energy to produce 26% of the world's industrial output. They account for about 25% of the world's petroleum consumption, while producing only 6% of the world's annual petroleum supply.

In the United States, oil is primarily consumed as fuel for cars, buses, trucks and airplanes (in the form of gasoline, diesel and jet fuel). Two-thirds of U.S. oil consumption is in the transportation sector. The US - an important export country for food stocks - converted approximately 18% of its grain output to ethanol in 2008. Across the US, 25% of the whole corn crop went to ethanol in 2007. The percentage of corn going to biofuel is expected to go up. In 2006, U.S. Senators introduced the BioFuels Security Act.

The proposal has been made for a hydrogen economy, where cars and factories are powered by fuel cells, although the hydrogen would still have to be produced at an energy cost, and hydrogen cars have been called one of the least efficient, most expensive ways to reduce greenhouse gases. Other plans include making society carbon neutral and using renewable energy, including solar, wind and methane sources.

Automobiles, on the other hand, possibly could be powered 60% by grid electricity, 20% by biofuels and 20% direct solar. Re-design of cities, telecommuting, mass transit, higher housing density and walking could also reduce automobile fuel consumption and obesity. Carpooling, flexcars, Smart cars, and shorter commutes could all reduce fuel use.

It should be noted that between 1950 and 1984, as the Green Revolution transformed agriculture around the globe, world grain production increased by 250%. The energy for the Green Revolution was provided by fossil fuels in the form of fertilizers (natural gas), pesticides (oil), and hydrocarbon fueled irrigation. The peaking of world hydrocarbon production (Peak oil) may test Malthus' critics.

Almost all of Canada’s energy exports go to the United States, making it the largest foreign source of U.S. energy imports: Canada is the top source of U.S. oil imports, and it is the largest source of U.S. natural gas and electricity imports.