For the first time in a quarter-century,
Back in 1973 and '74, an oil embargo -- and the devastation it inflicted on the US economy and the stock market -- put the fear of God into consumers and politicians alike. And for a time, it genuinely looked as though America would actually reduce its dependence on foreign oil.
we are AGAIN at the mercy of foreign oil
But in the 1990s, memories of the great oil crisis began to fade. And so did America's resolve to become self-sufficient.
Now, the America's energy picture is in far worse shape than at any time in its history ...
Why? First, because environmental regulations have made operating older refineries so costly, 75 of them have been mothballed, abandoned or destroyed in the past 25 years.
- America's dependence on foreign oil has TRIPLED in the last 15 years: In 1985 we imported just 3.2 million barrels a day. Today, we need more than 9 million barrels a day.
The great economic boom of 1992-2000 drove demand for oil, heating oil, gasoline and for all petroleum-based products through the roof. And even with the economy sinking, demand is STILL rising at the rate of 105.9 million barrels annually!
- Exploration for new oil fields STOPPED in 1998: Big oil companies halted exploration more than two years ago - when oil prices dropped to $10 a barrel.
Now, with oil at TRIPLE its 1998 price, some exploration is beginning to resume. But it's too little, too late: It takes years to get new finds to market.
- Oil tankers and pipelines are ALREADY maxed out: The world's tanker fleets and pipelines are so busy right now, the cost of moving oil has jumped 167 percent in the last few months alone!
- America's refineries can't process even one more drop of oil than they are now: US refineries are operating at peak capacity. And yet, they're processing LESS oil than they did 25 years ago!
And second: Those same environmental regulations have made it nearly impossible to build new refineries in the US. Not a single US refinery has been built in the past quarter-century!
And to make matters worse, you can't just throw up a new refinery overnight. It will take years to build new refining capacity in the US.
Put simply, it will be next to impossible to increase the supply of electricity in this country for many years to come!
As Bad As The Impending Oil Shock Is,
Make no mistake my friend, blackouts and brownouts and a tripling of electricity costs in California is just the tip of the iceberg. As California goes, so goes the country.
Today's Looming Electricity Shortage Is WORSE!
This is a national problem -- and it's a headache of massive proportions:
- New York's electricity industry has striking similarities to California's. This summer, monthly bills for the average New York resident's electricity bill are expected to hit $120, compared with $95 last summer.
- Transmission constraints will continue to be a problem in the Midwest, notably between Minnesota and Wisconsin
- Annual electricity prices will rise in Florida by between $700 million and 1.6 billion.
- The expected 50 percent jump in electricity bills for Montana residents will be small compared to changes occurring elsewhere in the region. And the energy crises in Western states will spread to the Midwest and East through this year.