New GEI Analysis Finds U.S. Energy Security Near Record Best
WASHINGTON, D.C. — America’s energy security improved for the sixth consecutive year in 2017 and neared a modern-day best, according to the Global Energy Institute’s 2018 Index of U.S. Energy Security Risk released today.
The Index employs 37 different energy security metrics measuring geopolitical, economic, reliability, and environmental risks. A lower Index score indicates a lower level of risk. The ninth annual edition of the Index covers 1970-2040 and incorporates the latest historical data and forecast models. In 2017—the most recent year of actual data available—the risk score dropped to 77.5, the lowest score since 1995, and just a few points from the best ever score of 75 in 1992.
“The good news continues for our nation’s energy security,” said Karen Harbert, president and CEO of the Global Energy Institute. “Our index captures just how astounding the impact of America’s energy revolution has been in such a short amount of time. As the U.S. produces more oil and gas here at home, we are less and less reliant on others for our energy, improving security and creating economic opportunities across the country. We expect the future to be even brighter."
Energy security was at its most precarious in 2011, when geopolitical turmoil threatened supplies and U.S. production had not yet ramped up. Since that time, risk scores have fallen 24 points, led by rapid decreases in scores related to imports from increased domestic production.
Notably, results related to energy efficiency and the environment all improved. For efficiency metrics, lower scores were driven by improvements in the average vehicle mile per gallon rating as well as energy use intensity—the amount of energy it takes to produce a dollar of GDP. On the environmental side, total emissions have fallen 865 million metric tons (14%) from 2007, when they hit their high, to 2017.
One metric that saw rising risk was crude oil prices, which increased by 22%. This is driven exclusively by the increase in the average price of crude oil, which had been very low in the previous Index year.
Looking forward, the Index projects that the U.S. will hit its record low risk score as soon as next year, with even further improvements projected out into the future. Since the U.S. no longer is a net importer of natural gas, the natural gas imports metric became the first one to hit zero risk in this year’s Index. It’s likely that metrics related to oil and gas import expenditures will also achieve the same milestone in the next few years because of a decline in imports as a result of domestic production.
The Index and its companion, the International Energy Security Risk Index, are available on our website at www.globalenergyinstitute.org/energysecurity. The U.S. Index is once again available in an online, interactive web tool format, which makes it easy to see how various metrics change from year to year.
About the Global Energy Institute
The mission of the U.S. Chamber of Commerce’s Global Energy Institute is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.
About the U.S. Chamber of Commerce
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.