Energy Measures To Reduce U.S. Dependence on Foreign Oil

GAO has done work in three areas regarding energy measures calculated to reduce United States dependence on oil imported from member nations of the Organization of Petroleum Exporting Countries (OPEC): conservation of existing oil supplies, development of non-OPEC sources, and transition to alternative energy sources. The United States has been relying heavily on foreign oil sources, leaving itself vulnerable to international events which could disrupt the supply mechanism. Conservation efforts which would minimize dependence on foreign oil should be based on detailed Government planning and direction, center on internal energy conservation in the Government's own operations and facilities, and prepare for the worst by developing emergency energy conservation and gasoline rationing plans. The recent OPEC price hikes and the upheaval in Iran are continuing reminders that locating additional oil sources would be desirable, but the United States can also exert its considerable influence to modify the impact of OPEC policies. After all, the majority of the multinational oil companies are based in this country; U.S. purchases of imported oil represent about 20 percent of the world market; the United States is a leading innovator and supplier of vital technological expertise in the oil industry; and our investment resources and military strength could be used for bargaining leverage in achieving improved trade relations with OPEC nations, without riding roughshod over the national self-interest of the oil-producing countries. Alternative energy sources must be developed because fossil fuels are an exhaustible resource. Possible substitutes include alcohol fuels from wood and grain; tidal currents; hydrogen from seawater; and solar, wind, geothermal, and nuclear fission technologies.