Clarkson & Mildenberger - Supporting US Energy Security
Most Countries dependent on foreign sources for an essential commodity (oil) rely on the global
marketplace, which can be volatile.
Logistics: North America’s Oil and Natural Gas Supplies
• In 2010, US consumer 19.1 million barrels of petroleum products per day (highest in
• US is 3 largest crude oil producer, but its domestic production only satisfies 51% of its
• Since 1973 (OPEC crisis), US imports of oil & petroleum products from Canada and
mexico have increased dramatically.
• Canada is the largest supplier of oil to the US (25% of all imports), Mexico is 5 largest
• The periphery (Canada/Mexico) currently provides the US with 1/3 of its petroleum
imports. This is dependent on the quantities available and the costs in bringing them to
• North America accounts for 15% of total proven oil reserves worldwide (85% of which is
in Canada, trapped in tar sands).
• Costs of extracting oil from tar sands is high, which may limit Canada’s construction of
• Environmental concerns are another obstacle with tar sands.
• Fastest growing component of worldwide energy consumption (cleaner/more
conventional than oil)
• US consumption just under 21% of global total. They don’t produce enough for domestic
needs, need to import between 13%-16%.
• Shipping of Natural gas requires special transport containers (Liquid Natural Gas
• Canada has long been US primary foreign natural gas supplier • UK and Netherlands were leading foreign investors in US petroleum & natural gas
industry in 2000, Canada followed as 3 largest investor.
Policy construction of North America’s Energy Markets
• US economic strength and security heavily dependent on exports of its periphery
• When Alberta tar sands were discovered, American TNCs provided investment capital
and technology. US gov’t also relax