President Obama says his energy policy is a great success. In support, Democratic-party stalwart John Podesta trumpets the claim that the United States is now producing more oil than it imports. A recent article in the Bloomberg News goes even further, saying that the U.S. is now a net oil exporter. New York Times columnist Tom Friedman instructs us to rejoice: High oil prices are now good for the United States.
Unfortunately, none of this is true. For the record, according to the Department of Energy/ Agency February 2012 Monthly Energy Review, the United States currently consumes (November 2011 figures, p.52) 12.93 million barrels of oil per day (mpd) in its transportation sector, 4.55 mpd in its industrial sector, 1.159 mpd in its residential and commercial sectors, and 0.096 mpd in electrical-power generation, for a total consumption of 18.735 mpd. In contrast, (page 37) in 2011, the United States averaged a production rate of 5.671 mpd of crude oil, or 30 percent of its total consumption, for a net deficit of 13.064 mpd, or 4.77 billion barrels per year. At today’s oil price of $105 per barrel, the bill for these imports runs to $500 billion per year, a tax on our economy equal to 20 percent of what Americans pay the IRS, and a reduction in the nation’s GDP sufficient to account for a loss of 5 million jobs at an average salary of $100,000 per year each.