Energy Security

Achieving Energy Security in an Interdependent World
Oil is essential to fuel economic growth. But its supply is volatile, subject to short-term interruptions as well as longer-term lapses in the rate of supply development. As a consequence, any lapses carry with them substantial economic costs and give rise to concern over “oil security.” In the past, these prospects led to government attempts to preserve US “energy independence” via a number of policies designed to insulate itself from world markets. Some are now calling for a repeat of this experience. However, such past efforts were abysmal failures, which aggravated rather than solved these problems, before being quickly abandoned. Today a return to such policies would be even more futile. Sustaining modest economic growth worldwide for the next several decades will require massive new investments in oil and gas.