Environmental Engineering Reference
In-Depth Information
The Honorable Bart Gordon
Ranking Member
Committee on Science
House of Representatives
The Honorable
Michael M. Honda
Ranking Member
Subcommittee on Energy Committee on Science
House of Representatives
Since 1974, the nation has been subjected to periodic disruptions of crude oil
imports resulting in price shocks and related energy crises. Oil prices doubled in
1974 and doubled again between 1978 and 1980. These price shocks alerted the
nation to our growing dependence on imported oil and the need to conserve
energy and develop alternative energy sources. Yet, when world crude oil prices
plunged in the mid-1980s, the United States continued to rely on oil, and U.S.
energy companies reduced their investments in developing alternative energy
technologies. More recently, crude oil prices more than doubled—gasoline prices
exceeded $3 per gallon in August 2006—as a result of increased world
consumption, hurricanes in the Gulf of Mexico, and instability in the Middle East
and other oil producing regions. However, by October 2006, crude oil prices had
once again declined, though at higher levels than previously. Despite these
periodic price shocks and related energy crises, the United States' dependence on
imported crude oil and natural gas continues to increase—crude oil imports have
grown from 40.5 percent of the U.S. supply in 1980 to 65.5 percent of the U.S.
supply in 2005, according to the Energy Information Administration (EIA), within
the Department of Energy (DOE). Without dramatic change, the United States is
likely to become ever more reliant on imported oil and natural gas with all the
attendant threats to the U.S. economy and national security. Since 1974, the nation
has been subjected to periodic disruptions of crude oil imports resulting in price
shocks and related energy crises. Oil prices doubled in 1974 and doubled again
between 1978 and 1980. These price shocks alerted the nation to our growing
dependence on imported oil and the need to conserve energy and develop
alternative energy sources. Yet, when world crude oil prices plunged in the mid-
1980s, the United States continued to rely on oil, and U.S. energy companies
reduced their investments in developing alternative energy technologies. More
recently, crude oil prices more than doubled—gasoline prices exceeded $3 per
gallon in August 2006—as a result of increased world consumption, hurricanes in
