US dependence on Organisation of Petroleum Exporting Countries (OPEC) for energy is not set to fall in the near future despite focus on renewable energy. According to a report by National Association of Regulatory Utility Commissioners (NARUC), America's reliance on foreign energy will grow by 19 percent over the next 20 years, expanding the transfer of U.S. wealth to the Organization of Petroleum Exporting Countries (OPEC) by more than $600 billion. The two-year study broadly examined the social, economic and environmental impacts of continued restrictions on developing America's oil and gas resources.
"The study highlights the importance of developing our domestic petroleum resources in an environmentally responsible manner," said American Trucking Associations Vice President Rich Moskowitz. "Continuing restrictions on the development of U.S. energy resources will adversely impact our economic well-being and our national security." The study predicts the economic results of maintaining current restrictions on accessing America's federally owned onshore and offshore energy resources.
The results, when compared with the effects that could be expected from a reasonable energy policy on federal energy resources, will include:
-Import costs for crude oil, petroleum products and natural gas will be $1.6 trillion higher;
-Imports from OPEC nations will be 4.1 billion barrels higher, resulting in increased payments to OPEC of $607 billion;
-U.S. production of crude oil will be 9.9 billion barrels lower;
-U.S. production of natural gas will be 46 trillion cubic feet lower;
-Energy-intensive industries will produce nearly 13 million fewer jobs;
-Housing starts will be 200,000 fewer;
USA not ready to quite OPEC's oil dependency
-Annual average natural gas prices will be 17 percent higher;
-Annual average electricity prices will be 5 percent higher;
-Real disposable income will be a total of $2.34 trillion less;
-Energy costs to consumers will be $2.35 trillion higher;
-Gross Domestic Product will be $2.36 trillion lower.
