U.S. Chamber’s Energy Institute Unveils 2013 Energy Security Risk Index: U.S. Shows Slight Improvement, Ukraine Ranks Last Among Major Users

Press Release
March 4, 2014
WASHINGTON, D.C.—  The U.S. Chamber’s Institute for 21st Century Energy unveiled the second annual edition of its groundbreaking International Index of Energy Security Risk, which ranks the world’s top energy users on 29 metrics.  In this year’s edition, which covers 1980 to 2012, Norway takes the top spot, while the United States ranks sixth and Ukraine receives the lowest scores among the top 25 energy users. 
 
“The United States showed improvement in our rankings as a result of greater energy self reliance propelled by increased unconventional oil and gas output,” said Karen Harbert, president and CEO of the U.S. Chamber’s Energy Institute.  “Combined with growing energy production from Canada and a reformed hydrocarbon sector in Mexico, it’s possible we’ll soon see the world’s energy center of gravity shifting away from the Middle East and towards North America, bringing with it even greater economic and geopolitical advantages.”
 
This year’s International Index is the latest in the Energy Institute’s ongoing series that provides a qualitative analysis of energy security. The Energy Institute also produces the Index of U.S. Energy Security Risk, which in 2013 showed improvement for the U.S. as a result of unconventional oil and gas production.  
 
Norway’s first place finish is driven by a strong natural resource base, which makes it a net exporter of fossil fuels. Norway is one of the world’s largest natural gas exporters and also exports oil and coal. Rounding out the top five are Mexico, New Zealand, United Kingdom, and Canada.
 
At the other end of the spectrum, Ukraine has consistently ranked last among the top 25 energy users.  Ukraine must import virtually all forms of energy and is especially reliant on Russia for natural gas. Its economy is also very energy inefficient. While the rankings released today do not reflect the latest unrest in Ukraine, concerns about supply disruption did contribute to its low ranking.
 
“The 2013 International Index notes that Ukraine has realized its energy vulnerability and has been taking steps to become more self-reliant by investing in expanded oil and gas exploration and production, diversifying supply sources, and privatizing its coal-mining sector,” said Steve Eule, vice president at the Energy Institute.  “Unfortunately, these investments are still years away from producing results, which leaves Ukraine especially vulnerable during a crisis.”
 
In 2013, the United States ranked sixth, up one spot from last year. While all nations in the Index saw a decrease in risk from much lower price volatility in 2012, the U.S. benefited from an 835,000 barrel per day increase in production, most of which was from unconventional sources of energy. Electricity source diversity is also a relative strength for the U.S., though pending EPA regulations could cause America’s energy security scores to fall if coal is taken out of the mix. Affordable energy is another key U.S. advantage, especially in comparison to countries in Western Europe, which have some of the highest energy prices in the world.
 
Like the U.S. Index, the International Index is updated annually, allowing users to spot trends and measure the impact of major policy decisions. For instance, Japan’s actions to shut down all but two of its nuclear power plants after the Fukushima Daiichi incident caused it to fall from 14th to 18th in the rankings.
 
The International Index scores are reported in relation to a reference index representing the average risks for Organization for Economic Cooperation and Development (OECD) member countries. While the International Index provides rankings for the top 25 energy users, which account for about four-fifths of total world energy demand, another fifty countries are given scores in a new interactive web tool available at www.energyxxi.org/energysecurity. The full report and a video introduction are also available on the site.
 
The mission of the U.S. Chamber of Commerce's Institute for 21st Century Energy 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.