MovieChat Forums > Syriana (2005) Discussion > Shouldn't it be obvious that the US is n...

Shouldn't it be obvious that the US is not oil dependent anymore?


With the post 90s shale revolution and oil production in the US itself rising every year, shouldn't it be obvious that the US is not dependent on foreign oil like it used to back until the 80s? I fail to understand the repeatedly made argument, be it the alleged reason for Iraq conflict or the general chaos in the middle East, that the US somehow meddles in that region just to ensure oil supplies. The fact is if anybody has to worry about their future, its the Saudis themselves as their claim to power and wealth that they've enjoyed for the most of the 20th century is simply obsolete with the abundance and frankly irrelevance of oil in the new energy mix of the 21st century! Can anybody rationalize the US-is-forever-oil-hungry theory, so prevalent in pop culture (Syriana being an example)? Feedback from energy and geopolitics experts especially welcome!

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We're oil dependent, heavily so right now. So are all 1st World countries, and the emerging economies (Pacific Rim, PRC, India, etc.).

While the recent shale gas explosion (no pun intended) means the percentage of US power generation depending on oil is now very small, we still depend heavily on oil for transportation power and petrochemical products (everything you can distill from crude oil besides gasoline). Both of those are key components of our economy, and any serious degradation in supply for either would be a huge economic catastrophe.

While the US does not import much oil from the Middle East, remember that oil is a commodity market - any reduction in the total supply seriously impacts anyone buying the product at all. That is, even though Europe and (now) China are the primary consumers of Middle Eastern oil, and the US primarily consumes oil from North/South American sources, we still are heavily dependent on ME oil.

Put it another way: there's more demand for oil than there is supply. ANY restriction in supply drives prices up for ALL oil sources; so if the Saudis suddenly stopped selling oil, Europe and China would go over to Venezuela and Mexico and bid up the price there, which means the US supply is now under threat.

We're interested in maintaining the world supply, and our access to that supply. Doesn't matter where the oil comes from - we're critically interested in making sure it flows, and, flows to us at a "reasonable" price.

The US is certainly not the only country "oil hungry". We're just the 800-lbs gorilla on the block right now, but China's the 800-lbs panda right behind us.

Ultimately, we'll likely wean ourselves off of oil for power or transportation needs, which is about 75% of all oil we consume. But the petrochemical industry is another story completely, and one which is *much* harder to change out. So oil supplies will continue to be a concern for the next century or more.


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Thanks! That was certainly an enlightening comment.

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Nothing to do with oil.

America has more untapped oil reserves than Saudi Arabia.

The simple fact is that American print off dollars and buy anything it wants on the world markets.

When the Saudi's run out of oil and resources do you think they will be able to print off Riyals and buy anything on the world market?

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