Egypt is in the midst of what can only be described as a
political and social meltdown. While elected officials and
diplomatic leaders from the U.S. determine our appropriate course
of action, we are reminded that the stability enjoyed by Americans
is simply not the norm in other parts of the world.
While our thoughts and hearts go out to the Egyptian
people, we as a nation must examine how their affairs deeply affect
the vital components of our economy and our way of life. One of the
most apparent consequences of such turmoil is the impact on our
energy supply and consumption.
With nearly 40 percent of the world’s oil transported
through Egypt’s Suez Canal, government collapse and societal chaos
could shut down the world’s busiest oil pass-through. If such a
catastrophe were to take place, the U.S. is hardly poised to stand
on its own when it comes to energy.
After the BP oil spill, President Obama’s overreaction
spurred a ban on offshore drilling and, as a result, a 79 percent
drop in domestic oil production. While he argued that it was
necessary for regulators to ensure the safety of rigs, it’s been
nearly a year and there seems to be no sign of lifting this
moratorium.
In addition to the loss of revenues and joblessness
resulting from the moratorium and other drilling restrictions, the
U.S. will inevitably rely even more heavily on foreign oil to
satisfy America’s growing energy needs. While OPEC claims it would
be willing to send more fuel to the U.S. in the event of an
Egyptian oil shutdown, this would only exacerbate the stranglehold
foreign oil maintains on U.S. consumers and our
government.
The greatest way America could eliminate this dependency
and better insulate ourselves from unrest in other parts of the
world would be to increase our own domestic energy production.
According to Robert Bluey of the Heritage Foundation, allowing
access to oil and natural gas resources currently off-limits would
increase U.S. crude oil production by as much as 2 million barrels
per day in 2030, offsetting nearly one-fifth of the nation’s
imports.
Further, the American Petroleum Institute conservatively
estimates that if energy companies were allowed to drill in areas
currently restricted by the federal government, they would find
116.4 billion barrels, enough oil to power more than 65 million
cars for 60 years. Additionally, they project they would discover
650.9 trillion cubic feet of natural gas, enough to heat 60 million
homes for 160 years.
It is disconcerting that President Obama did not make a
single mention of domestic drilling or lifting the moratorium in
his recent State of the Union address. While the free market should
examine the options alternative energy sources provide, it is clear
that significant domestic drilling is an unmistakable necessity in
achieving American energy independence.
Although the outcome of the crisis in Egypt is uncertain,
American lawmakers should remain uncomfortable with the notion that
another nation’s problems could so adversely affect our energy
consumption at home. The U.S., while willing to endure occasional
pitfalls in exchange for participation in the global economy,
should never be willing to risk our autonomy for the whims of
foreign producers.
It’s time to lift the ban on offshore drilling. It’s time
for the federal government to begin issuing drilling leases to oil
and gas companies. And it’s time to get America on the road to real
and lasting energy independence.
