Question

What are pros and cons of US being energy independent, that is not importing (mainly) oil from other countries? As the graph below shows (source: https://www.aei.org/publication/milestones-americas-shale-revolution-elevated-us-worlds-1-energy-superpower/print/ ) this is not as big of an issue today as it has been in past when majority of oil used in US was imported, but what would be the effects of US unilaterally deciding to ban oil imports?

Answer 1

There are certain benefits for US being energy independent :

• National Security : US spends millions of dollars to keep its aircraft in the OPEC countries as it is not safe to import oil from Gulf countries. So once the independence is achieved, there would be National security for the country.
• Wealth Creation : US is spending almost $300 billion a year to import oil from Gulf countries. As a result there is a trade deficit , imports being more than exports. After achieving independence, this financial problem would be solved.
• Job Creation : There would be ample of job opportunities available in the near future if US sets up its own petroleum refineries and petroleum extraction points.

At the same time, there are certain drawbacks of being energy independent for US. They are

• Global Recession : As the country spends extensively on becoming oil independence, it might result in financial crunch leading to global recession as a massive breakthrough.
• China becoming the dominant power : Once US stops importing oil from OPEC countries, it might result in China taking over as the major dominant power in the world market.