Tuesday, January 24, 2012

Dependence on foreign oil isn't the problem

If you go back and look at all major federal speeches during my tenure at the White House from 2006 to 2007 you should find that the words "dependence on foreign oil" or "addicted to foreign oil" were never used. It was part of my job at the White House to change all such references to "dependence on oil" and "addicted to oil."

The reason is that the fundamental economic problems associated with oil (national security, environmental, etc.) do not depend at all on whether the oil is produced domestically or abroad.

If the price of oil suddenly spikes, consumers in the United States are hurt just as much as consumers in Canada which is a net oil exporter. It doesn't matter whether the oil is foreign or domestic.

The problem is that we use oil, not whether the oil is foreign or domestic.