How the Climate Bill Will Reduce U.S. Oil Imports

Posted: 26-Aug-2009; Updated: 27-Aug-2009

Ever since the first OPEC oil embargo of 1973, Americans have been concerned about our growing dependence on imported oil. In one recent poll, 84 percent of Americans were concerned that the U.S. imports too much oil.¹ Studies estimate that a cap on global warming pollution will lead to $20 billion less a year in U.S. oil imports by moving our economy toward clean, American-made energy.²

Imported oil sends billions of our dollars to other countries – some to countries hostile to the interests of the U.S. Those billions could be better spent here at home, creating the new business investments and new jobs, saving money for families who could spend it on health care, education, and other basic needs.

U.S. Oil Consumption and Offshore Drilling

Drill Baby Drill? For What? New U.S. offshore drilling would be barely a drop in the bucket of U.S. consumption. (Architecture2030 via Climate411)

Why drilling won't help

The U.S. has only five percent of the world's oil reserves, but consumes a quarter of the world's oil. Even if we drained every oil field in America, we would still depend largely on imports. This reality is reflected in how our dependence on imported oil has grown: In 1973, we imported 28 percent of the oil we used;³today we import more than 58 percent of our oil.⁴

Opening our coasts to offshore drilling isn't the answer either. According to the Department of Energy, offshore drilling in the outer continental shelf couldn’t begin until around 2017 and wouldn't reach peak production until about 2030, when it would produce only 200,000 barrels of oil per day. This would supply a meager 1.2 percent of total U.S. annual oil consumption – a drop in the bucket.⁵

Climate bill: Leading the shift away from oil

How does the climate bill solve our oil addiction and reduce imports? It shifts our economy away from oil consumption, toward more fuel efficient cars and airplanes, greater energy efficiency in our factories, more energy efficient buildings, expanded use of clean energy like wind and solar, and much more. The less oil we burn, the less oil we have to import.

According to a recent analysis by the Department of Energy, under the climate bill the U.S. would reduce its oil consumption 344 million barrels in the year 2030 alone, a cut of more than 12 percent from predicted imports for the same year without the bill. Those 344 million barrels of oil are worth almost $24 billion today. Over the following years, under the climate bill, our oil consumption would continue to decline.

People often talk about "win-win" situations, but under the climate bill it's really true. Everyone comes out ahead – except maybe ExxonMobil.