Consumer Energy Alliance warns of dangers political, oil instability bring United States
Lack of consistent energy would cripple the United States transportation industry and lead to increased prices, according to a new report by the Consumer Energy Alliance (CEA).
Geopolitical crises and instability in oil prices are the main factors that could affect American ability to work, travel, buy goods and pay bills, according to “Fueling America’s Energy Consumers.” Such crises lead to higher transportation costs, which in turn raise operational expenses and overhead, and end up hurting businesses who end up passing that hurt onto consumers. The transportation sector is, after all, the largest energy-consuming segment of the United States.
The CEA’s solution is to continue invigorating U.S.-produced energy to offset global inconsistency. Specifically, they have made a case for tapping into the nation’s considerable onshore and offshore oil and natural gas resources on federal lands, side by side the promotion of more renewable energy sources. They claim there are ways for the former to be safely tapped.
“This report highlights the often-overlooked fact that oil and natural gas provide the majority of energy used in the transportation sector, and when the price of oil rises due to external factors like supply disruptions and geopolitical events, that means the price of transportation fuels also rises,” CEA President David Holt said. “While the United States has been undergoing an energy revolution over the last decade, keeping prices much lower than they would otherwise be, it is still importing a fair amount of crude oil and petroleum products from other nations – making it reliant on imported oil to ensure American consumers and businesses meet their transportation needs.”
Despite rising domestic production, the United States still imported more than 10 million barrels of crude oil and petroleum products daily in 2017. Additionally, the cost of gasoline is expected to increase over this year by $133 per household and increase national spending on gasoline by more than $60 million since 2016.
