The United States currently produces 8 percent of the world’s liquid fuel but uses 25 percent, making up the difference by importing 5 billion barrels of oil annually. With prices currently near $100 per barrel, this dependency will cost us $500 billion this year, an amount equal to the nation’s entire trade deficit. Furthermore, at a time when Congress is seeking to keep taxes light in order to boost job creation, our dependency will impose a tax on our economy equal to 20 percent of what Americans pay the IRS. Except, of course, that these revenues will go to the treasuries of foreign governments instead of our own.
During the 1940s, the United States produced 60 percent of the world’s liquid fuel. This advantage proved to be a major factor in securing the Allied victory in World War II. Had we been as weak in energy security then as we are today, we might well have lost the war, as enemy submarines could have collapsed our economy, and with it our war effort, simply by cutting off our oil supply.
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