An Energy Overview - Energy Imports And Exports

After 1958 the United States consumed more energy than it produced (see Figure 1.1) but made up the difference by importing energy. Imports (mainly oil) grew rapidly from 1953 through 1973 as the U.S. economy grew with the use of inexpensive oil. In 1973 net imports of petroleum reached almost 13 quadrillion Btu.

Although the Arab oil embargo of 1973–74—coupled with increased oil prices—momentarily slowed growth in petroleum imports, the general increase continued, with imports exceeding 18 quadrillion Btu in 1977. That year, U.S. dependence on petroleum imports rose to 46.5% of the nation's oil consumption. Despite the lesson of 1973, it took a second round of price increases in 1979–80, as shown in Figure 1.2, accompanied by lengthy and frustrating lines at gas stations, to convince Americans that they had to become less dependent on imported oil, conserve resources more, or both. By 1985 U.S. dependence on foreign oil had decreased sharply, to 27.3% of oil consumption. (See Figure 1.6.)

After 1985 the U.S. dependence on foreign sources of oil started to gradually increase, as a drop in crude oil prices drove up demand. When Iraq invaded Kuwait in 1990, the potential threat to the flow of oil to America and other industrialized nations was one of the reasons the United States challenged Saddam Hussein and eventually declared war at that time. After the terrorist attacks of September 11, 2001, and the subsequent Bush administration "War on Terror," the concept of energy independence, or at least less energy dependence, became increasingly important. In 2002 imports fell slightly for the first time since 1995. But in 2003 the United States was at war again with Iraq, and imported oil accounted for a record 56.1% of U.S. oil consumption. (See Figure 1.6.) That year net imports of petroleum reached 24.1 quadrillion Btu. (see Table 1.2)

Although the United States imports energy in the form of oil, it exports energy in the form of coal. Since 1950 America has produced more coal than it has consumed and has been an exporter of coal to other nations. In 2003 coal exports totaled 1.1 quadrillion Btu, nearly 28% of U.S. energy exports. (See Figure 1.7 and Table 1.2.)