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• The U.S. has 4.6% of the world’s population, produces 21% of Gross World Product and uses 26%, produces 9%, but owns only 2-3% of world oil.
• Half of U.S. oil is imported. One-fourth of oil usage comes from OPEC (Organization of Petroleum Exporting Countries).
• Of the 15% of net oil imports coming from Saudi Arabia, two-thirds relies on a single processing plant and two terminals, all vulnerable to long-lasting sabotage or attack.
• OPEC’s cartel power to keep oil prices above competitive levels is estimated to have cost the U.S. economy about $4-14 trillion over the past 30 years---roughly a year’s Gross Domestic Product.”
During 1977-85 (thanks to Jimmy Carter): GDP rose 27%, oil use fell 17%, net oil imports fell 42%, imports from the Persian Gulf fell 87%.
OPEC lost half its market, destroying its pricing power for a decade. If that 5.2% annual gain in oil productivity was repeated starting in 1/2000, Persian Gulf imports could have been gone by 5/2002.
The key to the huge 1977-85 oil saving was Detroit’s 7.6 m.p.g.-better cars.
Two decades ago, we gained 3.25 m.p.g. every 21 months while improving safety, peppiness, and emissions.
If 25% of cars in 2000 were the popular 48-49 m.p.g. hybrid-electric models, or 15% were ultra light hybrid SUV’s , they could displace Gulf imports.
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