Most if not all economic activity in advanced western economies are predicated on the availability

of low cost and readily available forms of energy. To secure this strategic commodity western
nation and in particular the US expend considerable diplomatic and military energies, as its
importance is not lost upon them. Currently the United States produces about 74% of its energy
requirements domestically; however, certain key sectors of the U.S. economy are heavily dependent
on imported energy.
Sources of energy can be divided in to three main categories :-
Carbon based
Nuclear
Renewable
Although the US has invested considerable amounts in renewable as a form of energy, the
technology behind this category is far from mature and cost significantly more per kilowatt than
conventional forms of energy, furthermore much of the technology used to produce renewable
relies on rare earth elements, of which china has a near monopoly
1
. More importantly fluctuations
in production cause instability in the electricity grid which limits the proportion of renewable
which can be installed on a electricity grid
2
. Hence renewable energy will not constitute a large
proportion of installed generating capacity for the foreseeable future.
Nuclear power generation currently produces 790 TWh of electricity which accounts for 19.2% of US
electricity production
3
. In the previous decade due to high oil and gas prices there was talk of a
nuclear renaissance, this was supported by the 2010 Nuclear power program. The 2011 Fukushima
Daiichi nuclear disaster and decreasing gas prices have forestalled any renaissance in the US
nuclear energy industry. There has been no ground-breaking on new nuclear plants in the United
States since 1974
4
, and many operators have withdrawn their applications for new power plants
5
.
Thus the nuclear renaissance has failed to materialize.
Carbon based fuels including coal, gas and oil have consistently accounted for 84% of US energy use
over the previous decade
6
. Of this 40% of the electricity in the US is generated using coal
7
. The US
has the worlds largest proven reserves of coal, which at current levels of consumption are
considered to be sufficient for at least 200 years
8
.
Over 95% of natural gas consumed in the US is produced domestically hence the US is currently self
sufficient in natural gas
9
, but proven reserves of conventional natural gas are estimated to be
exhausted in less than 15 years. Although the existence of shale gas has been known for over a
hundred years, methods to extract it at a commercially viable costs are a recent phenomenon. The
process commonly known as fracking (Induced hydraulic fracturing) is been used to exploit reserves
of gas previously inaccessible to conventional methods of extraction. Shale gas production has
steadily increased and now accounts for over 23% of natural gas production in the US and is
estimated to increase to 49% by 2035
10
. The exploitation of unconventional gas reserves has
dramatically increased the estimated natural gas reserves of the US. With some commentators
speculating that reserves have been increased from a paltry 15 years supple to an astronomical 100
years worth. It is estimated that the US will become a net exporter of natural gas in the coming
decade, upsetting the previous relationships between suppliers and consumers in the energy
market.

Althought United States produces about 74% of its energy requirements domestically, certain key
sectors of the U.S. economy are heavily dependent on imported energy
11
. Oil currently provides
93% of the energy used for transportation in the US
12
of which is a large proportion is imported.
This is a reflection of current technological development, currently there is no alternative, which can
provide the same power density, and range that an internal combustion engine using diesel or
gasoline can provide. Alternatives like the electric car all have critical and somewhat
insurmountable obstacles for their large scale adoption
The United States imported 11.0 MMbd of crude oil and refined petroleum products in 2012.
However the majority of this imported oil was imported from western countries, with Canada
topping the list at 28%.


U.S. dependence on imported oil fell from 60.3 percent in 2005 to 49.3 percent in 2010
13
, and all
indicators suggest that this is an ongoing trend. This reduction in the main can be attributed to
decline in consumption due to the reduction in the popularity of large engine sizes.
Imports from the middle east total 29% of US imports, however the US is attempting to reduce this
figure. The US has several programs looking at means to produce fuel domestically of these biofuels
Gas to liquid technology and shale oil seem to be the most promising, further more electrification of
the railway network reduces dependence on diesel locomotive hence reducing demand from the
freight sector.

In conclusion the US has the means available to reduce or even eliminate its dependence on
foreign, energy supplies in all sectors except transport. However even in this sector increases in
efficiency, and change in practices can at least eliminate the need to import from the middle east.

1. http://www.theguardian.com/environment/2012/jan/27/rare-minerals-global-renewables-industry
2. http://www.spiegel.de/international/germany/instability-in-power-grid-comes-at-high-cost-
for-german-industry-a-850419.html
3. Nuclear Energy Review, US Energy Information Administration, 2012
4. US Energy Information Administration, Table 3. Nuclear Reactor Characteristics and Operational
History, 11 Nov. 2011.
5. Matthew L. Wald (December 7, 2010). "Nuclear Renaissance Is Short on Largess". The New York
Times.
6. http://data.worldbank.org/indicator/EG.USE.COMM.FO.ZS
7. http://www.eia.gov/energy_in_brief/article/role_coal_us.cfm
8. http://www.eia.gov/tools/faqs/faq.cfm?id=70&t=2
9. http://www.eia.gov/energy_in_brief/article/about_shale_gas.cfm
10. Annual Energy Outlook 2012 Early Release Overview". Retrieved 27 January 2012.
11. Doran, Peter T.; Maggie Kendall Zimmerman (January 20, 2009). Examining the Scientific
Consensus on Climate Change. EOS, Transactions American Geophysical Union, vol. 90, no.
3: 2223.
12. http://www.eia.gov/energy_in_brief/article/major_energy_sources_and_users.cfm
13. http://www.eia.gov/energy_in_brief/article/foreign_oil_dependence.cfm
14.







Bureau of Land Management (2011-04-14). "Notice of Intent To Prepare a Programmatic Environmental
Impact Statement (EIS) and Possible Land Use Plan Amendments for Allocation of Oil Shale and Tar Sands
Resources on Lands Administered by the Bureau of Land Management in Colorado, Utah, and Wyoming" (PDF).
Federal Register 76 (72): 2100321005. Retrieved 2011-10-09.