"ENERGY INDEPENDENCE"
A cry for "energy independence" is being heard across the nation, and loudly so in Washington. With geopolitical turmoil, volatile prices, and continuing reminders of the international political power of oil, the concept is compelling and deeply appealing. But what does "energy independence" mean for the United States, a $13 trillion economy that uses the equivalent of 50 million barrels of oil every day? Despite the call for energy independence in the 1970s, the United States has gone from importing a third of its oil to importing 60 percent, with the same trend for natural gas. In a Wall Street Journal Opinion Page essay, CERA Chairman Daniel Yergin argues that if independence is presented as self-sufficiency, it will likely fall flat. Dr. Yergin says that the concept of energy security-resilience, robustness, reduced vulnerability-combined with diversification of supplies, energy conservation, and technological innovation, illuminates a more constructive path. And since isolation from global energy markets is not realistic, it is also essential to recognize that international trade and understanding foster national and global energy security.
