Energy Institute Releases 2012 Edition of Index of U.S. Energy Security Risk
WASHINGTON, D.C.—Despite gains in some areas due to the positive impact of shale energy, the 2012 edition of the U.S. Chamber’s Energy Institute Index of Energy Security Risk shows that America’s energy security is continuing to worsen under current policy and regulatory framework.
Using 37 individual metrics in four primary areas—geopolitical, economic, reliability, and environmental—the third annual edition of the Index provides a quantifiable measurement of energy security. For 2011, the most recent year for which data is available, the risk index score is 101.3—the highest score since 1970.
“This year’s Index of U.S. Energy Security Risk is the clearest indication yet that America’s energy security is on the wrong track,” said Karen Harbert, president and CEO of the Energy Institute. “High oil prices, price volatility, and a continued lack of progress on infrastructure have all combined to elevate our energy security risk to the highest it has been in over forty years.”
The Index tracks changes in energy security risk beginning in 1970 and projects future risk through 2035. The 2012 edition of the Index incorporates the most current energy data from the U.S. Energy Information Administration and other federal agencies.
Although the overall risk Index score rose nearly four points compared to last year, a bright spot in America’s energy picture is natural gas from shale, which contributed to improved scores in a number of metrics, including natural gas imports.
“One of the big stories in this year’s Index is the impact that shale is already having on our energy security,” said Stephen Eule, vice president at the Energy Institute. “Natural gas, along with coal, has helped keep electricity prices low, and the ever-increasing supply of gas thanks to advances in technology will give America a competitive advantage for many years to come.”
Of the 37 metrics, 13 showed increased risk in 2011, 21 showed a decrease in risk, and three showed little change. However, risks increased by large margins in the metrics that had increases, which led to the overall increase. Of the four primary areas, geopolitical energy security risks rose by 5.3 points, economic risks rose by 8.6 points, reliability risks rose by 1.1 points, and environmental risks decreased by 2.9 points.
Between now and 2035, the Index shows the potential for a continued period of high risk as well as areas that could mitigate those risks. Under the current policy scenario, the Index is projected to average 95.5 points over the entire forecast period—almost two points higher than expected based on last year’s projections.
“The Index shows that America needs to undertake a course correction on energy, and we have the resources to do it,” Harbert said. “Increasing American energy production will go a long way to balance the global energy market and lower our risk profile.”
The Index of Energy Security Risk includes an interactive web tool that allows users to explore each year’s data broken down by category. To read the full report, and learn more about how the Index was computed, visit our website.
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.
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.