Plummeting oil and gas prices have put the United States’ movement toward energy independence in jeopardy, as it has driven a decline in development. Is energy independence essential given today’s economic climate?
In February, with Covid-19, we all became intimately aware of the vulnerabilities associated with an insecure supply chain as it relates to medical equipment and pharmaceuticals. “We” had outsourced manufacturing of items essential to our well-being. I say “we” because you, like me, did not consciously make the decision to outsource. But when we choose to buy what we do based on price alone, that primary requirement drives choices which reverberate through every decision in the supply chain.
In these days of ordering online and taking delivery at the front door we lose sight of the fact that “Is it available to buy?” is the first issue. More importantly, when the product or commodity is essential, to be secure in its availability is the key issue.
Energy is such an essential commodity. With the growth of unconventional production in the last few years the United States has neared energy independence. We had certainly become less dependent on supply from places which don’t always hold our interests as a high priority.
Plummeting oil and gas prices have put that movement toward independence in jeopardy, as it has driven a decline in development. We need to consider whether an independence from adversarial sources is something to protect.