WEBVTT - Can the U.S. Cut Dependence on Foreign Oil?

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<v Speaker 1>Welcome to brain Stuff, a production of iHeart Radio, Hey,

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<v Speaker 1>brain Stuff, Flour and vogebam here. Doomsday scenarios what will

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<v Speaker 1>we do when we run out of oil are nothing new.

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<v Speaker 1>For decades, analysts and industry experts have been trying to

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<v Speaker 1>predict when the world's oil supply might be critically low

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<v Speaker 1>or dry up altogether, and what the results might be.

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<v Speaker 1>The United States has been investing in renewable energy to

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<v Speaker 1>help reduce its dependence on petroleum based fuels and thus

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<v Speaker 1>the amount of oil it imports. In nineteen alone, the

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<v Speaker 1>US invested fifty nine billion dollars, up from only six

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<v Speaker 1>billion in two thousand four. But is weaning off of

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<v Speaker 1>oil even possible? Let's consider the factors involved in this

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<v Speaker 1>multi pronged question. Currently, the United States is the largest

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<v Speaker 1>oil producer in the world, followed by Saudi Arabia, Russia,

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<v Speaker 1>and Nada. Oil here includes crude oil and all other

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<v Speaker 1>petroleum liquids plus biofuels. As of March eight two, the

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<v Speaker 1>US Energy Information Administration or e i a S preliminary

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<v Speaker 1>data for one suggest that the US had a total

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<v Speaker 1>petroleum production output of about sixteen point six million barrels

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<v Speaker 1>per day. But the US consumed about nineteen point eight

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<v Speaker 1>million barrels per day, and you have to take into

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<v Speaker 1>consideration that the U S exports oil as well. In one,

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<v Speaker 1>the United States exported about eight point six million barrels

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<v Speaker 1>of petroleum a day. That all went to around a

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<v Speaker 1>hundred and seventy six countries plus for US territories, but

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<v Speaker 1>there are imports of petroleum to the United States to

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<v Speaker 1>that number was about eight point four million barrels per day.

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<v Speaker 1>What that means is in one for the second year

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<v Speaker 1>in a row, the United States was an net petroleum exporter,

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<v Speaker 1>meaning we exported more than we imported, and these past

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<v Speaker 1>two years have been the first time we've been in

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<v Speaker 1>net exporter since at least ninety nine. Even when we

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<v Speaker 1>do use less petroleum than we produce, we still import some.

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<v Speaker 1>According to the e i A. That's to help supply

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<v Speaker 1>domestic demand. The US also maintains a valuable stockpile of

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<v Speaker 1>crude oil and its Strategic Petroleum Reserve, though there are

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<v Speaker 1>strict rules on when that oil can be drawn down.

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<v Speaker 1>Some experts say importing some foreign oil isn't necessarily a

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<v Speaker 1>bad thing, even for net exporting countries like the US.

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<v Speaker 1>The a S Director for Energy Markets and Security case

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<v Speaker 1>case Autamori testified during a Senate hearing in saying, quote,

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<v Speaker 1>even for net exporting countries, imports can still play a

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<v Speaker 1>critical role helping overcome issues related to crude qualities, differences

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<v Speaker 1>and refined product demand and domestic refining capacities, or geographical

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<v Speaker 1>mismatches between production and consumption. So again, the real question

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<v Speaker 1>that needs answering is how long can the global supply

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<v Speaker 1>of crude oil last. The United States certainly isn't as

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<v Speaker 1>reliant on other countries for crude oil as it was

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<v Speaker 1>even fifteen years ago, when it was producing only around

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<v Speaker 1>five thousand barrels a day. The e i A says

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<v Speaker 1>that one often cited but misleading way to gauge the

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<v Speaker 1>future of oil reserves is the reserves to production ratio.

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<v Speaker 1>That's calculated by dividing the volume of total proved reserves

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<v Speaker 1>by the volume of current annual consumption. But the e

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<v Speaker 1>i A says that because proved reserves are based on

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<v Speaker 1>known projects, they're not applicable for estimating total resource availability

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<v Speaker 1>over the long term. Instead, it says global oil reserves

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<v Speaker 1>should increase as new technologies come online at existing oil fields.

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<v Speaker 1>And of course, there will be competition from renewable energy

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<v Speaker 1>in the future. To consider two. The e i A

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<v Speaker 1>explains its view of the future and its Annual Energy Outlook,

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<v Speaker 1>which is a yearly assessment of the world energy market.

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<v Speaker 1>Key points for the United States from one, which were

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<v Speaker 1>released on March three, include that petroleum and natural gas

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<v Speaker 1>are likely to remain the most consumed sources of energy

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<v Speaker 1>in the US through but renewable energy is the fastest

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<v Speaker 1>growing segment. Also, wind and solar incentives, along with falling

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<v Speaker 1>technology costs, are creating robust competition with natural gas for

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<v Speaker 1>electricity generation. Meanwhile, the shares of coal and nuclear power

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<v Speaker 1>are decreasing. The report also expects the US to remain

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<v Speaker 1>a net exporter of total liquids and a net importer

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<v Speaker 1>of crude oil, even though our production of crude oil

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<v Speaker 1>has reached record highs. The Biden Harris administration is working

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<v Speaker 1>toward energy independence with several new green energy investments for

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<v Speaker 1>the US, including the Building Performance Standards Coalition, the Methane

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<v Speaker 1>Emissions Reduction Action Plan, the five billion dollar National Electric

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<v Speaker 1>Vehicle Infrastructure Formula Program, and hundreds of new solar, wind

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<v Speaker 1>and storage projects across the country. But to cut dependence

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<v Speaker 1>on foreign oil altogether, the United States and the world

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<v Speaker 1>must cut its addiction to oil entirely, and we're still

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<v Speaker 1>a long way from that reality. Today's episode is based

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<v Speaker 1>on the article will the US ever end its dependence

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<v Speaker 1>on foreign oil? On how stuff Works dot Com? Written

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<v Speaker 1>by Streets Throwitt and Sarah Glin. Brain Stuff is production

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<v Speaker 1>by Heart Radio in partnership with houstuffworks dot Com, and

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<v Speaker 1>it's produced by Tyler Klang. For more podcasts from my

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<v Speaker 1>heart Radio, visit the i heart Radio app, Apple Podcasts,

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<v Speaker 1>or wherever you listen to your favorite shows.