National Energy Security

Today our nation's economy is heavily dependent on oil imports. While the U.S. has four percent of the world's population, we consume 25 percent of the world's oil production. And, the situation is not improving. As domestic production of crude oil has declined, the country's dependence on imported oil has increased. According to the Energy Information Administration, imports account for 65 percent of our crude oil supplies. Furthermore, projections show the price of oil will remain strong as demand for oil continues to increase across growing world economies. This dependence on oil has left us vulnerable to disruptions in oil supplies due to natural disasters, political disruptions, and price volatility.

U.S. Production and Imports of Crude Oil

In addition, our reliance on foreign oil contributes significantly to our trade deficit. Oil imports are the largest component of the U.S. trade deficit, accounting for 33 percent of the trade deficit in 2006. The 2006 petroleum deficit was $270.9 billion, an increase of $41.7 billion (18.2 percent) from 2005, while the non-petroleum deficit increased $89 billion (1.6 percent).

The most effective way to secure the nation's energy supply is with a diverse renewable energy portfolio of clean, efficient, and domestically-produced energy sources. Biofuels play an important role in this portfolio as the only near-term substitute for liquid transportation fuels. In 2006, U.S. production and use of nearly 5 billion gallons of ethanol reduced dependence on imported oil by 170 million barrels equivalent, valued at more than $11 billion. And, with an evolving biofuels market, a much greater percentage of our nation's fuel needs can be met with fuels derived from domestically produced, renewable biomass resources.