The past decade has been one of historic change in the U.S. energy economy, yet one fact remains unaltered: American mobility continues to depend almost entirely on oil. While oil has facilitated the rise of the modern era, its price volatility—caused by a myriad of factors, most notably OPEC’s longstanding market collusion—creates tremendous energy security vulnerabilities for the
Such manipulation undermines the regular, transparent price discovery upon which markets depend to function properly. Moreover, these distortions constrain U.S. foreign policy options, affect the flexibility and activities of the military, and threaten economic growth and fiscal stability. Fortunately, there is a range of solutions that could further strengthen U.S. energy security and reduce the threats posed by the anticompetitive cartel activity that supports oil’s monopoly over the transportation sector.
SAFE advocates for a comprehensive policy approach that consists of both supply- and demand-side solutions. These include:
- Maximizing domestic oil production;
- Implementing robust U.S. fuel economy standards, accounting for the latest driver-assist and crash-avoidance technologies, and the ridesharing business models of companies like Uber or Lyft;
- Promoting the widespread deployment of alternative fuel vehicles, which run on domestically-sourced fuels including electricity, natural gas and hydrogen that are both low and stable in price; and
- Advocating for connected, shared and autonomous vehicles, which promise to significantly improve system-wide fuel efficiency and roadway safety.
SAFE’s 2019 Congressional Briefing Book offers concrete policy solutions that will help reduce problems posed by American oil dependence. Data and information included covers the following topics:
- Fundamentals of the global oil market, including consumption, production, prices and reserves;
- Alternative fuel vehicles, vehicle efficiency trends, and strategic minerals;
- The role new and innovative technologies—such as shared, autonomous vehicles—may play in cutting oil consumption while delivering widespread social and economic benefits; and
- Policy recommendations designed to ensure the long-term security and prosperity of the United States through reduced oil dependence.