Canadian Cure for the Middle East Blues

Perhaps the most critical aspect of curbing our appetite for oil is decreasing our dependence on the Middle East. But if we are ever going to get serious about it the question then becomes, where will we make up the shortfall? The answer may lie with our neighbor to the north.

The Difference a Year can Make

Just a little over a year ago, President Bush stood before Congress and urged the U.S. to limit its thirst for oil. More specifically, he proposed the huge goal of replacing more than 75% of our oil imports from the Middle East by 2025.

Assuming the U.S. currently imports 3.4 million bbl/day, a drastic reduction like this would mean cutting more than 2.55 million bbl/day in Middle Eastern exports.

Now fast forward a year and you will hear similar energy self-sufficiency talk echoing in his latest State of the Union address.

This time, however, he proposed his “Twenty in Ten” plan, aimed at cutting gasoline consumption by 20% in ten years.

This would effectively cut 2 million bbl/day from our oil consumption.

This latter proposal is nothing more than a solution to the former. And if “Twenty in Ten” happens, it means Bush will have met his goal with eight years to spare.

Energy & Capital