US urged to rethink energy independence

16 November 2007 22:21  [Source: ICIS news]

By Ivan Lerner

RIYADH (ICIS news)--The US needs to rethink its goal of energy independence and focus on energy security, a top oil executive said on Friday at OPEC’s third summit.

The rising cost of imported oil has spurred calls for the US to become energy self sufficient, said Alan Kelly, chair of the coordinating subcommittee of the Washington-based National Petroleum Council and president of ExxonMobil's lubricants and petroleum specialties division.

But energy independence should not be confused with strengthening energy security, he said.

"Energy independence is not realistic" in the foreseeable future, Kelly said, adding, "Energy independence is not necessary for energy security."

Policies supporting energy independence may actually create uncertainty among international trading partners and hinder investment in international energy supply development, Kelly said, and could be incompatible with broader foreign policy objectives and treaty obligations.

Rather than pursuing energy independence, Kelly suggested the US enhance its energy security by moderating demand, expanding and diversifying domestic energy supplies, such as coal and nuclear, and strengthening global energy trade and investment.

Even if the US could become physically self-sufficient in energy, added Kelly, it could not disengage from global energy activity, trade and finance.

By: Ivan Lerner
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