America's reliance on foreign energy will grow by 19 percent over the next 20 years, expanding the transfer of U.S. wealth to the Organization of Petroleum Exporting Countries (OPEC) by more than $600 billion, according to a report by the National Association of Regulatory Utility Commissioners (NARUC). The two-year study broadly examined the social, economic and environmental impacts of continued restrictions on developing America's oil and gas resources.
"The study highlights the importance of developing our domestic petroleum resources in an environmentally responsible manner," said American Trucking Associations Vice President Rich Moskowitz. "Continuing restrictions on the development of U.S. energy resources will adversely impact our economic well-being and our national security."
The study predicts the economic results of maintaining current restrictions on accessing America's federally owned onshore and offshore energy resources. The results, when compared with the effects that could be expected from a reasonable energy policy on federal energy resources, will include:
- Import costs for crude oil, petroleum products and natural gas will be $1.6 trillion higher;
- Imports from OPEC nations will be 4.1 billion barrels higher, resulting in increased payments to OPEC of $607 billion;
- U.S. production of crude oil will be 9.9 billion barrels lower;
- U.S. production of natural gas will be 46 trillion cubic feet lower;
- Energy-intensive industries will produce nearly 13 million fewer jobs;
- Housing starts will be 200,000 fewer;
- Annual average natural gas prices will be 17 percent higher;
- Annual average electricity prices will be 5 percent higher;
- Real disposable income will be a total of $2.34 trillion less;
- Energy costs to consumers will be $2.35 trillion higher;
- Gross Domestic Product will be $2.36 trillion lower.
The American Trucking Associations is a member of the Consumer Energy Alliance, which was among the public sector and private sector organizations that contributed energy experts' information and analysis for the NARUC report.
The report was assembled by experts from the Science Applications International Corp. and the Gas Technology Institute and provides the most up-to-date assessment of America's oil and natural gas resources. Utilizing the National Energy Modeling System, the study renders a quantitative summary of the jobs, revenue and number of housing starts that Americans should expect to surrender in the future under the restrictive