US Energy Policy In The Face Of Growing Oil Dependence

Abstract

The purpose of this paper is to explore why the US government has displayed so little alarm about the country's growing oil dependence (at least up until the Gulf crisis), despite its traditional concern with security of supply. Abundant supplies of oil is the obvious explanation. However, quite apart from this factor (which has lent legitimacy to the laissez-faire approach), the US attitude may reflect a growing awareness that strong economic interdependence is a fact of life in several areas. It may also reflect the fact that the United States has been unable to resolve the conflicts of interest that inevitably accompany the implementation of policies designed to slow oil dependence, e.g., tax measures, the opening up offshore areas and higher gasoline taxes. It is concluded that, in the period following the Gulf crisis, the US will find it easier to solve its supply problems through diplomatic actions, rather than through domestic initiatives.