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Wed, Apr 22nd 2009, 11:52

henelito A. Sevilla, Jr. Asian Center, University of the Philippines

Less oil consumption or alternative energy sources have been in the vocabulary of energy politics since 1973 oil crisis. Can less oil consumption of the United States able to weaken the political and economic influence or power in this matter of oil? I doubt so. Although the United States is importing only about 10 percent of oil from the Middle East, it however continue to import from the maxcican oil refginary and even in africa. Quite sure the US has control over these fields. But the question to ask is , can less or no importation of oil by the US from Iran, Venezuela and Saudi Arabia enough to degrade of minimize the political and economic power of oil. Perhaps true but not necessarily true in many cases.

Although the United States does not import from these country, the world economy needs some of the Petro dollar from these country in the form of investment in western banks to support other American international economic and politic operations. There is a circular relationships between the petro oil generated at the international market and the money or investment that the United States needs for its domestic and international activities.

The United States can perhaps avoided importing from these countries but another negative implications is that American companies are devoid from any benefit that other foreign companies could earn in capital investment especially in the case of Iran or Iran before the war (See ILSA and Iran-Libya Sanction).

The pratical approach to minimize the influence of oil in every American life or our life as citizens of the world is not about less importation of oil anywhere in the world but it is through the implementation of a coordinated policies both at the bilateral, regional and international levels. The US of course give its political and economic mechanisms can do something for that. Another thing is to understand the nature of American OIl companies operations in energy industry.

You cannot just tell every American to minimize the use of oil consumption, but you can draft a more acceptable policy where everyone can understand better the nation's dependency of foreign energy.

Energy Security is not only about the security of supply but also the security of demand and capital investments for energy related activities.

Finally, the Obama's administration can work hard to convinceOPEc and International oil market to coordinate properly and manange properly this scarce resourse. Althernatives such as gas and other can be of feasible items in line.