American Oil From American Soil
Vince Hatfield’s “American Oil From American Soil” is a powerful song about the importance of energy independence. Hatfield grew up in Snyder, Texas, near Midland, and understands the oil industry well. He is also aware of the manipulation the Saudi Arabian oil industry does every decade by flooding the world market with cheap oil. Energy independence would be a great boon for Americans, but the industry is being ruined by the current policy of Saudi Arabia.
U.S. dependence on oil from the Persian Gulf
While President Obama has pledged to reduce U.S. dependence on oil from the Persian Gulf by a third within a decade, there are still many questions that remain unanswered. Should the United States try to reduce its oil use through self-sufficiency? This is a crucial question, as the world’s oil consumption is increasing rapidly.
The prevailing view in Washington is that Iran and Iraq are aggressive states, and that the United States must protect its oil fields from invasion. Indeed, the goal of the American presence in the region is to prevent Iraq and Iran from encroaching on Saudi oil fields. But the underlying concern is not simply about disruptions in oil supplies or price shocks.
The MENA region dominates the petroleum production in the Arab/Persian Gulf. Russian, Canadian, and Brazilian production also limit the production in the region. By 2050, the United States is projected to maintain its high level of petroleum independence, though it will remain dependent on its strategic partners in the region.
The United States relies less on petroleum from the Middle East than it used to in the past. In fact, it now sources the majority of its imported oil from Canada, not from the Persian Gulf. As of April 2021, 9.8% of U.S. petroleum imports were from Persian Gulf countries, a decline from 9.8% in the first five months of last year.
However, it is important to note that oil from the Persian Gulf region accounts for nearly 20% of world oil production. While the United States could experience a dip in oil production next year under Biden, it would not change the larger trends. On average, the United States imports less oil from the Middle East than it did under Trump.
In addition to OPEC, Western oil companies are increasingly interested in the region. They are building a new pipeline through Turkey and Georgia that will supply a million barrels a day. This will help to decrease the impact of OPEC on oil prices and meet projected increases in demand.
Even after the shale revolution, U.S. oil production remains strong, and domestic oil companies have figured out how to extract oil economically from shale formations. This means that the United States is now poised to become a net oil exporter. However, the Middle East remains critical to global oil markets, and disruptions there could have a significant impact on U.S. consumers.
In the 1980s, the U.S. government begins to take a more active role in the oil industry. In August 1953, the Iranian military overthrows the Iranian prime minister Mohammad Mossadeq, who had nationalized the oil industry two years prior. After the coup, a government coalition of mostly U.S. companies takes over Iran’s oil production. However, these companies only acquire a small percentage of the consortium so that independent U.S. oil producers can purchase shares.
After the oil embargo was lifted, the United States began to increase its production domestically, reducing U.S. dependence on Middle Eastern oil. The embargo on oil in 1973 caused a price surge and reduced supply to Western markets. By 1975, the top economies of the world merged to form the International Energy Agency.
Impact of fracking on American oil production
The impact of fracking on American oil production has been a topic of much debate. Some countries, including Germany and France, have banned the practice, and some states have prohibited it entirely. Democratic presidential hopefuls such as Joe Biden and Pete Buttigieg have promised to reform regulations on fracking at the federal level. They’ve proposed stricter regulation on drilling techniques and higher production limits.
Although the fracking process may be safe for the environment, it is not without risks. In particular, there have been numerous incidents of fracking-related spills and leaks. These incidents have occurred during the pumping and mixing of the fracturing fluids. Moreover, the contaminated wastewater from the process can potentially reach drinking water supplies.
In addition to affecting the environment, fracking would also impact the United States’ economy. It would affect its exports by nearly 200%, resulting in a massive trade deficit. It would also shock the global oil market. Currently, natural gas supplies 35% of the country’s electricity. If the fracking industry stopped producing natural gas, electric utilities would have to replace it with coal, a practice that would increase carbon dioxide emissions by 300%.
The US is a net exporter of oil, but the rise in oil production has come at a price. US energy companies emit a huge amount of greenhouse gases, causing global warming. In addition, the explosive drilling in the Permian region has been linked to a series of earthquakes in the region. According to Todd Staples, the president of the Texas Oil and Gas Association, the intensity of methane emissions in the Permian basin decreased as production increased.
Fracking is currently under very little regulation at the federal level. A 2005 congress exemption severely restricted protections for water quality. EPA has finalized new rules for fracking under the Clean Air Act, but the rules are not yet in place. The new regulations will not begin to take effect until 2015, and oil and gas companies operating on federal lands rarely get fined for violating safety rules. In fact, fines are relatively small when compared to the profits of the industry.
The process of fracking produces large amounts of wastewater that end up in the environment. The wastewater can enter surface waters in many ways, including through a broken pipeline that spilled 3 million gallons of produced water in 2015. The wastewater generated during the fracking process can also be recycled in wastewater treatment plants, which often fail to handle it. The resulting wastewater also contains a high concentration of TENORM, or technologically enhanced naturally occurring radioactive material.
Although the extent of fracking’s impact on American oil production remains unclear, it has been shown that it increases the available supply. This, in turn, lowers the price of oil. And with more countries utilizing the fracking technology, global prices of oil will continue to decline.
Impact of Keystone XL pipeline on American oil production
The Impact of Keystone XL pipeline on U.S. oil production is not clear, but it’s not entirely clear what the pipeline’s failure will mean for American oil production. While the pipeline’s cancellation is a political statement, it has negative economic consequences. According to one economist, the project’s cancellation could cost the U.S. government $15 billion. Furthermore, the pipeline would violate the North American Free Trade Agreement.
As for the pipeline’s impact on American oil production, the pipeline’s southern leg is currently carrying about 700,000 barrels of oil a day. The pipeline is designed to deliver up to 830,000 barrels a day. Initially, the pipeline will carry light crude from the U.S., but it’s also expected to carry more heavy Canadian oil.
As far as the pipeline’s path is concerned, it would decimate the habitats of many imperiled species. Many of these species live in the areas where tar-sands oil is produced, and the pipeline would severely impact their survival. According to a recent report from the Center for Biological Diversity, the project would threaten 12 species, including endangered whooping cranes and American burying beets.
The Keystone XL pipeline would have been a short-term solution that would have reduced the import of oil from Russia. Last year, the U.S. consumed about 20 million barrels of oil a day, while global consumption was 100 million barrels per day. The Keystone XL pipeline would have carried 830,000 barrels a day from Canada to Gulf Coast refineries. However, Biden fulfilled his campaign promise and revoked the permit. The pipeline would have contributed less than one percent of the total oil supply in the world, says Jason Bordoff, director of the Center for Global Energy Policy at Columbia University.
While the pipeline’s environmental impacts are a serious concern, the benefits would outweigh these negative aspects. The pipeline would have opened the way for the development of the Canadian tar sands, which would increase American oil production. It would also create jobs in the U.S. and Canada, which would have helped boost the economies of both countries. In addition to boosting American oil production, Canadian oil is also better for the environment than most oil varieties around the world.
The Keystone XL pipeline has two parts: the southern and northern leg, which already exists between Port Arthur, Texas, and Cushing, Oklahoma. The southern leg, meanwhile, would connect the pipeline to the southern leg of the Gulf Coast Pipeline. Opponents of the pipeline claim that the company took advantage of legal loopholes to bypass rigorous vetting procedures.
The Keystone XL pipeline was blocked in January 2021 after President Biden revoked the project’s permit. The project would have affected wildlife, people, and climate. Thankfully, the pipeline’s opponents were able to stop it from going ahead.
