This Is A Matter Of National Security
The U.S. is dependant on foreign oil. This should come as no surprise. There have been countless discussions over the years. Politicians have used it as fuel for debate for decades.
In fact, the last eight Presidents have all talked about reducing our dependence on foreign oil, starting with Nixon back in 1973 all the way up to Obama today.
They’ve all wanted to kick the habit… to end America’s addiction to crude oil.
Of course, politicians have a long reputation of empty promises. Here we are in 2010 and nothing has changed. Maybe its lack of political will. Or maybe Americans just don’t want to change unless they are forced to.
Either way, America is in the exact same spot it was 37 years ago…
We rely on foreign countries, many of which dislike us, to fuel our habit. And there’s no end in sight.
According to the U.S. Energy Information Administration, the U.S. imported nearly 1.2 billion barrels of oil in 1970.
In 2008, the U.S. imported over 7 billion barrels… a whopping 19 million barrels of oil per day. That’s a mind-boggling number…
In fact, imported oil accounts for over 60% of the oil we use.
The demand for oil in the U.S. is tremendous. With just under 5% of the world’s population, we account for 25% of the world’s daily demand for oil. There’s no doubt about it, we’re gas hogs.
But here’s where it gets really interesting…
According to Securing America’s Future Energy (SAFE), a mere 4% global shortfall in daily supply would cause a 177% increase in the price of oil.
That’s right, even a small supply disruption would send oil from $78 to over $216 a barrel. How does $8 a gallon gas sound to you?
Fortunately, the likelihood of an extreme scenario like this is low.
But it’s not impossible… and the odds of it happening are growing each day we drag our feet. I have no doubt in my mind we’ll see gas prices north of $5 a gallon within the next five years.
Needless to say, this would bring a lot of hardship to Americans. Our economy will have many problems handling it…
This puts us in a precarious position as a nation. We are fully dependant on other nations to carry out our daily activities. Any interruption of oil to global markets and gas prices would become unaffordable for many people.
I’m not trying to scare you, I’m just stating the facts.
You can easily see our dependence on oil is a matter of national security.
It’s time to kick the habit my friends…
Government clearly isn’t going to do it for us. We have to take the initiative. You and me… we have to make the changes the U.S. needs. We can’t wait for government to lead the way.
As consumers, we vote with every dollar we spend. If we keep buying gas hogs, companies will keep making them. It’s time to demand more of the auto manufacturers.
It’s time to do our part to reduce our addiction to oil. Don’t wait for Washington…
Now, I won’t be naïve and think this can happen overnight. And not everybody in America will rush into fuel-efficient cars. Many Americans rely on big engines to get their work done. Those needing a “big rig” to make a living won’t trade it in on a Prius.
But if you just need to get from point A to point B, embrace this opportunity to change.
Nearly 65% of the oil consumed in America goes into transportation. By reducing the demand for transportation fuel, we can get ahead of the game.
Here’s a simple change you can make…
If you’re in the market for a new car, buy something as fuel efficient as possible. Forget about the gas-guzzler…
Make the switch on your own terms. Don’t be forced into change by the price of gas. You don’t want to be buying a fuel-efficient car when gas is $5 a gallon.
You want to be buying it now… when gas is relatively cheap.
Remember when gas prices were over $4 a gallon in 2008? The demand for hybrids and other fuel-efficient cars was sky high. And dealers were charging outrageous premiums.
This doesn’t have anything to do with “global warming”…
But it does have everything to do with America remaining a vibrant country. We’re a beacon of leadership in the world, with our ideas and love of freedom.
But, we can’t continue to be this ideal if we’re dependent on other countries for basic energy needs.
It’s time for us to set an example for the rest of the world to follow… it’s time to kick the oil habit.
Of course, where there’s crisis… there’s opportunity. In coming weeks, we’ll take a look at companies who are on the cutting edge of fuel efficiency. As gas prices move higher, these stocks could see huge potential returns…
Category: Commodities
