As we all know, oil is an essential component of our economic vitality and lifestyle. Oil is the primary energy source for many industries and a key feedstock for others. High oil prices affect everything from travel, shipping, autos, chemicals, consumer products, technology, and home heating. In March 1999, OPEC decided to decrease oil production to drive up oil prices, even as world oil consumption was rising. During this winter, home heating oil prices doubled in the Northeast.
Oil also has important implications for our national security.
Because oil is the lifeblood of our economy, it must be reliable, affordable, and predictable. Relying completely on others to supply it can present dangerous consequences to our prosperity and way of life both vital interests that the country must be prepared to defend. The United States is becoming increasingly reliant on foreign oil. It seems that few people view our reliance on foreign oil as a problem until prices are raised. Here in Washington, it s tempting to enjoy the political windfall of low oil prices.