The Mind Blowing Cost Of America’s Dependence on Oil

America depends on oil (NYSEARCA:USO) for a lot of things. But one sector relies on this form of energy more than most.

According to a report by Securing America’s Future Energy (SAFE), transportation accounts for a shocking 70% of total U.S. oil consumption. And, as long as American vehicles are powered by oil, road traffic congestion will continue to be a costly problem due to wasted fuel consumption.

Over the last 10 years, the total cost of this waste reached almost $1 trillion. Despite a push toward more fuel-efficient cars, that number is only expected grow over the next twenty years alongside increased urbanization.

The U.S. is the world’s largest oil consumer

The U.S. is the world's largest oil consumer

Securing America’s Future Energy/BP

 

And while the U.S. remains a major oil producer …

And while the U.S. remains a major oil producer ...

Securing America’s Future Energy/BP

 

… net petroleum imports currently meet more than half of the country’s total oil demand. In 2008, the U.S. sent $38 billion (55% of the deficit) overseas for crude oil and petroleum.

... net petroleum imports currently meet more than half of the country's total oil demand. In 2008, the U.S. sent $38  billion (55% of the deficit) overseas for crude oil and petroleum.

Securing America’s Future Energy

 

U.S. oil dependence cost the nation more than $5 trillion between 1970 and 2010.

U.S. oil dependence cost the nation more than $5 trillion between 1970 and  2010.

Securing America’s Future Energy

 

More than 50% of the world’s oil supplies pass through chokepoints like the Strait of Hormuz. Consequently, 11 to 13% of the U.S. defense budget ($67.5 billion to $91 billion) is devoted to guaranteeing free flow of oil

More than 50% of the world's oil supplies pass through chokepoints like the Strait of Hormuz. Consequently, 11 to 13% of the U.S. defense budget ($67.5 billion to $91 billion) is devoted to guaranteeing free flow of oil

Securing America’s Future Energy

 

With oil prices averaging $100 per barrel, the Department of Energy forecasts OPEC net export revenues to exceed $1 trillion in 2011.

With oil prices averaging $100 per barrel, the Department of Energy forecasts OPEC net export revenues to exceed $1 trillion in 2011.

Securing America’s Future Energy

 

In 2010, transportation accounted for 70% of total U.S. oil consumption—more than 13 million barrels of oil per day

In 2010, transportation accounted for 70% of total U.S. oil consumption—more than 13 million barrels of oil per day

Securing America’s Future Energy

 

From the early 1980s through 2007, the quantity of congestion-related fuel waste increased steadily

From the early 1980s through 2007, the quantity of congestion-related fuel waste increased steadily

Securing America’s Future Energy

 

In 2010, urban drivers wasted 1.9 billion of gallons of fuel—equivalent to about $101 billion

In 2010, urban drivers wasted 1.9 billion of gallons of fuel—equivalent to about $101 billion

Securing America’s Future Energy/Texas Transportation Institute

 

The total annual cost of congestion is more than $1 billion in each of the cities identified. Together, they account for 78% of fuel wasted nationally.

The total annual cost of congestion is more than $1 billion in each of the cities identified. Together, they account for 78% of fuel wasted nationally.

Securing America’s Future Energy/Texas Transportation Institute

 

And urban gridlock in cities of all sizes is only expected to get worse over the next 20 years, resulting in 65% increases in wasted fuel

And urban gridlock in cities of all sizes is only expected to get worse over the next 20 years, resulting in 65% increases in wasted fuel

Securing America’s Future Energy

 

Truck travel is expected to increase almost 80% by 2040

Truck travel is expected to increase almost 80% by 2040

Securing America’s Future Energy


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To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com