For most of the 20th Century, the United States was the world’s largest producer of petroleum. U.S. oil fields provided not only all our domestic needs; they generated a surplus for export. U.S. oil fueled the Allied armies during WWII. But U.S. domestic production peaked in the early 1970s and has declined ever since, while our consumption has continued to climb steeply. The shortfall has been made up by imported oil.
Americans use a lot of oil. Although we constitute only 5% of the world’s population, we consume 25% of global oil production. America epitomizes the petroleum-dependent lifestyle.
The Energy Department is projecting that domestic gasoline consumption will decline by about 190,000 barrels a day this year. Meanwhile, global oil demand is projected to rise by 1.2 million barrels per day. Where does that leave us?
Paul Roberts, author of The End of Oil, calls the notion of energy independence a “populist charade masquerading as energy strategy?” In the latest issue of Mother Jones magazine, Roberts write that energy independence is primarily being used as a political trick by ethanol cheerleaders, electric utilities pushing coal and nuclear, and supporters of drilling in the Arctic Wildlife Refuge. Roberts delivers a reality check: We don’t stand a chance of quickly becoming energy independent.
Oil surged to a new height today, almost reaching $114 a barrel. Retail gas prices rose to a new record of $3.38 per gallon. Diesel jumped to $4.19. And AAA is warning that these prices will continue to rise. The first reaction might be to panic, or make a mad dash toward a single technology solution. But a recent talk by John German, manager of environmental and energy analyses at American Honda Motor Company, suggested that we remain calm.
The national average for unleaded gas hit $3.28 a gallon this week, a 26 percent increase from last year at this time. Yet, the real cost of energy dependence amounts to more than $11.35 per gallon, according to Gal Luft, executive director of the Institute for the Analysis of Global Security.
Presidential candidate Barack Obama spoke at a General Motors plant in Janesville, Wisconsin on Wednesday, pledging to simultaneously support auto workers and a national transition to fuel efficient technologies, such as hybrid cars.
In this excerpt of our interview with Lisa Margonelli, author of Oil on the Brain: Adventures from the Pump to the Pipeline, we examine China’s rising demand for oil.
In this part of our interview with Lisa Margonelli, author of Oil on the Brain: Adventures from the Pump to the Pipeline, we examine two sources for our oil: Venezuela and Iran.
If you have ever paused for a moment at the pumps to wonder where the oil comes from and what it took to get it there, then race over to the bookstore—preferably on foot or bicycle—to pick up a copy of Oil on the Brain: Adventures from the Pump to the Pipeline by Lisa Margonelli. In our four-part interview with the author, she says, "Oil is all about perverse incentives. A lot of people are paying for my gallon of gas. And they are paying for it in a lot of ways that are unsavory."
